A STUDY ON

MARKETING STRATEGY FOR BRAND BUILDING OF BRANDED APPARELS

AT

INDUS FILA (JOHN HILL)

A MAIN PROJECT REPORT Submitted to the SCHOOL OF MANAGEMENT
In partial fulfillment of the requirements for the award of the degree

of MASTER OF BUSINESS ADMINSTRATION

BY HARSH KUMAR (Reg. No- 35080198)

UNDER THE GUIDANCE Of Mr. CHINNATHAMBI MFC, MPhil, MBA, PHDST Asst. Professor (SG)
SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY KATTANKULATHUR 603 203 MAY,2010

BONAFIDE CERTIFICATE

Certified that this major project report titled A Study on Marketing

Strategy for Brand Building of Branded Apparels at John Hill

is the bonafide work ofHARSH KUMAR (Reg. No- 35080198), who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other Project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Mr. CHINNATHAMBI Project Guide

Dr. JAYASHREE SURESH Head of the Department

ABSTRACT

This main project is a part of our course. I have done a market research on Marketing Strategy for Brand Building of Branded Apparels at John Hill, (Chennai). This market research has been done on behalf of JOHN HILL. The main focus of this research is to build a marketing strategy for building brand for John Hill, a retail segment of branded apparel of Indus Fila. My project profile was divided in to three parts. First one was Market Research and second one was location mapping (find out potential market in Chennai) & third part is for brand building for John Hill throw questioner method. This project report will be helpful for one who is looking for brand building in Chennai for branded apparel retailing business. It will also give information about brand awareness about branded apparels. This information will be helpful for the company to prepare marketing strategies for brand building in John Hill.

ACKNOWLEDGEMENT I would like to express our deepest gratitude and thanks to Dr. JAYSHREE SURESH Dean, School of Management, SRM University for her valuable support in doing my project. She has been a source of encouragement and guidance in all our endeavors. I express our profound thanks to Mr. CHINNATHAMBI, project guide, for her consistent encouragement and invaluable suggestion in completing this project, without her the completion of this project would be practically impossible. I also thank the others in the management who decided my various doubts and helped me understanding their respective department.

TABLE OF CONTENTS
CHAPTER NO. 1. 1.1 Introduction 2.1 Industry profile 3.1 Company profile 3.2 Product profile 3.4Theory of brand 3.4 SWOT analysis Of John Hill TITLE PAGE NO
1 3 11 13 17 24 25 26 27 28 29 30 30 30 31 56 57 58

2. 3.

4.2 Objective of the study 4.3 Scope of the study 4.4 Limitations of the study

5.

5.1

Research Methodology

5.2 Methodology of the study 5.3Statistical tools used

5.3.1 Percentage analysis

5.3.2 Chi-square test 6. 7. Analysis and Interpretations 5.1 Findings 5.2 Suggestions 5.3 Conclusion

Appendix
8. 9.
QUESTIONNAIRE BIBLIOGRAPHY

59 61

LIST OF TABLES
TABLE NO 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. 6.8. 6.9. 6.10. 6.11. 6.12. 6.13. 6.14. 6.15. 6.16. 6.17. 6.18. TABLE TITLE Sales of the show room per month. Number of customer visit in a particular day. Current rent of the store in per sq. ft. format. Average number of the customer visit per day. Customer conversion rate according to the sale. How much sales improve in holidays Gender wise customer walk in to the store. Types of apparels which are in more demand Average frequency of customer retention Customer segmentation according to income group. Purchase of clothes on the basis of age group. Number of store having single brand. Demand of shirts on the basis of size. Mode of advertisement which is more preferable. Way to analyses the competitors sales. Preferred strategy used for competitive advantage. Strategy for sales promotion. Number of customer satisfied with the product and returned to the store with same demand. PAGE NO 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

LIST OF CHARTS
CHART NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. CHART TITLE Sales of the show room per month. Number of customer visit in a particular day. Current rent of the store in per sq. ft. format. Average number of the customer visit per day. Customer conversion rate according to the sale. How much sales improve in holidays Gender wise customer walk in to the store. Types of apparels which are in more demand Average frequency of customer retention Customer segmentation according to income group. Purchase of clothes on the basis of age group. Number of store having single brand. Demand of shirts on the basis of size. Mode of advertisement which is more preferable. Way to analyse the competitors sales. Preferred strategy used for competitive advantage. Strategy for sales promotion. Different source of advertisement on the basis of effectiveness and popularity PAGE NO 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

CHAPTER 1
1. INTRODUCTION

Over a past few years there has been an explosion in the retail sector of in India.The explosion that give a huge enthusiasm to Indian economy and has capacity to give a lot to the Indian GDP and increase the employment. It brought lots of FDI and also appreciates the Indian big Business families to enter in the retail sector.The organized retail market is growing at 35 percent annually. In apparel retail the market size is increasing and new brands from overseas and also from domestic market are entering.. Some Indian companies like Reliance Industries Ltd, Aditya Birla Group, Bharti Enterprises Ltd. Mahindra Group and Tesco have entered or planning to enter in the Indian apparel retail market. This potential sector has also attracted some foreign companies like Wal-Mart,Carrefour,Costco Wholesale Corporation (Costco) and others.The main characteristics of thisindustry are: intense competition, steady growth and consolidation. Appeals perform important social and cultural functions. It reflects standards of modesty, religion, gender, and social status. It also shows taste and preference of user and the environmental condition of a place. Todays garments manufacturers has an answer to the fashionable appears with the great brands.The fashion has no rules. Actually it does not have any permanent rules. The fashion changes with times. The tastes and preferences of people changes regularly. industry. The company who can identifies the needs; wants and tastes & preferences of the customers can make good profits. As there is a lot of demand for fashions in all corners of the world, fashion can never die. Fashion is for all men from formal wear, executive wear, party wear, sportswear and casual wear. Thus, fashion can be created in any field. People get bored of wearing same fashions, design and colors. The company, which has continuous creativity, can only survive in todays competitive garment

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In the country where the population of youth is very large which give preference to trendy and quality apparels they are well knowledge about the present market scenario. It became very necessary for the company to fulfill the requirements of people to survive in the market. The pricing of apparel is also a very important factor as it should be affordable to the large middle classsegment of customer. The competition level in the garment sector is very high as many new companies are entering in this sector. These new comers are both international players as well as Indian players. The main reason of it is huge market available for all which has needy and also efficient to purchase the product. Some Indian manufacturers whose businesses are basically based on export are also finding their future in Indian local market.As they are not interested in the dollar alone and are slowly seeing profits with the rupee and Indian retail is getting mature, exporters are tapping the potential in the domestic market. It will also give them relief from the highly fluctuating and unstable international trade. Thus, the competition between the start-ups will be more fiercely than ever. In the era of globalization, companies compete not only in price and quality, but also in brand name. Therefore, building a successful brand name on apparel segment is a vital task.

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CHAPTER 2
2.1 INDUSTRY PROFILE

Indian readymade garments and textiles are extremely popular the world over. The garments industry in India is assumed as one of the best in the world because of the quality product relevantly lesser pricing.As an extremely well organized sector, garment manufacturers, exporters, suppliers, stockiest and wholesalers are the gateway to an extremely enterprising clothing and apparel industry in India. There are numerous garments exporters, garments manufacturer, readymade garments exporters etc. both in the small scale as well as large scale. Over the past few years, there was predominantly unorganized industry, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. Today, garments exports from India have made inroads into the international market for their durability, quality and beauty. One of the reasons for the economical pricing of India's readymade garments and apparels is the availability of highly skilled, cheap labor in the country. India Textile Industry is one of the leading textile industries in the world. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

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2.2 VARIOUS CATEGORIES

Indian textile industry can be divided into several segments, some of which can be listed as below:

Cotton Textiles Silk Textiles Woolen Textiles Readymade Garments Hand-crafted Textiles Jute and Coir

2.3 Role of Textile Industry in Indian Economy

The textile industry is one of the leading sectors in the Indian economy as it contributes nearly 14 percent to the total industrial production. The textile industry in India is claimed to be the biggest revenue earners in terms of foreign exchange among all other industrial sectors in India. This industry provides direct employment to around 35 million people, which has made it one of the most advantageous industrial sectors in the country. Some of the important benefits offered by the Indian textile industry are as follows:

India covers 61 percent of the international textile market. India covers 22 percent of the global market. India is known to be the third largest manufacturer of cotton across the globe. India claims to be the second largest manufacturer as well as provider of cotton yarn and textiles in the world.

India holds around 25 percent share in the cotton yarn industry across the globe. India contributes to around 12 percent of the world's production of cotton yarn and textiles.

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The Role of Textile Industry in India economy had been undergoing a moderate increase till the year 2004 to 2005. But ever since, 2005-06, Indian textiles industry has been witnessing a robust growth and reached almost USD 17 billion during the same period from USD 14 billion in 2004-05. At present, Indian textile industry holds 3.5 to 4 percent share in the total textile production across the globe and 3 percent share in the export production of clothing. The growth in textile production is predicted to touch USD 19.62 billion during 200607. USA is known to be the largest purchaser of Indian textiles.

Following are the statistics calculated as per the contribution of the sectors in Textile industry in India GDP:

India holds 22 percent share in the textile market in Europe and 43 percent share in the apparel market of the country. USA holds 10 percent and 32.6 percent shares in Indian textiles and apparel.

Few other global countries apart from USA and Europe, where India has a marked presence include UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and Japan. Readymade garments accounts for 45 percent shareholding in the total textile exports and 8.2 percent in export production of India. Export production of carpets has witnessed a major growth of 42.23 percent, which apparently stands at USD 654.32 million during 2004-05 to USD 930.69 million in the year 2006-07. India holds 36 percent share in the global textile market as has been estimated during April-October 2007.

The technical textiles market in India is assumed to touch USD 10.63 billion by 2007-08 from USD 5.09 billion during 2005-06, which is approximately double. It is also assumed to touch USD 19.76 billion by the year 2014-15.

By 2010, India is expected to double its share in the international technical textile market. The entire sector of technical textiles is estimated to reach USD 29 billion during 20052010. India GDP also includes a hike in the investment flow both in the domestic market and the export production of textiles. The investment range in the Indian textile industry has increased from USD 2.94 billion to USD 7.85 billion within three years, from 2004 to 2007. It has been assumed that by the year 2012, the investment ratio in textile industry is most likely to touch USD 38.14 billion.

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2.4 IMPACT OF ECONOMIC RECESSION IN TEXTILE INDUSTRY

Recessions are the result of reduction in the demand of products in the global market. Nearly half of Indias textile and apparel exports are to the US and European countries, and a sharp appreciation in the rupee against currencies like the US dollar and euro, and soaring raw material prices, have left the slowdown-hit textile industry in deep trouble in 20082009. The Indian textile industry rallied under declining domestic demand and high input costs in the current year. Drop in demand from external markets (like the US and Europe, both absorb nearly 50% of the total production) created panic among manufacturers who have started trimming production in a phased manner. To overcome with this problem and to keep its existence, Indian exporters have entered in to the domestic market and opened its own retail outlets. Through this they can show there expertise gained in international market to domestic market.

2.5 CURRENT FACTS OF INDIA TEXTILE INDUSTRIES

India retained its position as worlds second highest cotton producer. Acreage under cotton reduced about 1% during 2008-09. The productivity of cotton which was growing up over the years has decreased in 200809. Substantial increase of Minimum Support Prices (MSPs). Cotton exports couldn't pick up owing to disparity in domestic and international cotton prices. Imports of cotton were limited to shortage in supply of Extra Long staple cottons.

2.6 FAVORABLE FACTORS FOR THE INDIAN GARMENT GROWTH

Huge textile production capacity Efficient multi-fiber raw material manufacturing capacity Large pool of skilled and cheap work force Entrepreneurial skills Huge export potential Large domestic market Very low import content Flexible textile manufacturing systems
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2.7 THE INDIAN TEXTILE INDUSTRY CONSIST OF THE FOLLOWING

SECTORS

Man-made Fiber Filament Yarn Industry Cotton Textile Industry Jute Industry Silk and Silk Textile Industry Wool & Woolen Industry Power loom Sector

2.8 INDIAN GARMENT EXPORTERS FOCUSING ON DOMESTIC RETAIL

The exporters of garments made in India have turned their focus on the establishing domestic retail outlets with the experience they have gained in handling the international operations of several global retailers. The textile and apparel manufacturers and exporters, who have flourished on exports for years, have suddenly felt the pinch due to the appreciation of the Indian Rupee against the United States Dollar. These companies have been chalking out plans to focus their attention on the domestic garments based retailers.

2.8.1 Retailing of apparels

Earlier, exporters thought the retailing business to be a small contributor to the annual turnover, which would be less than even 10%. The advantages of the better margins offered by the domestic retailers and the direct contact of the apparel manufacturing companies with the customers have influenced the exporters to venture into the commercial activity of domestic retailing of garments and apparels. The Retail Business in India is currently at the point of inflection. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and it is valued at about US $ 350 billion.

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The apparel retail market is also finding newer entrants from the exporting community. A large

batch of exporters have turned their eye to the domestic retail market, armed with the strengths of designing and resourcing, they have attained from the foreign players, in order to put their retailing skills to test. Some newly entered retail players are Stallion Garments has bagged the exclusive licence for supply of Levis Signatures underclothing. It has also launched its own undergarments brands and will supply to 35 distributors across the country. The company is negotiating with Reliance to supply its products. The export hub of Tirupur is seeing export-oriented units taking the plunge locally. Some are even contemplating coming out with their own brand. Bangalore-based exporter Indus Fila too has come out with its own brand, John Hill, through a chain of exclusive outlets. All this spells good news for Indian consumers as they get to wear international designs in superior fabric at lower prices.

2.8.2 SOME OF THE RETAIL CHAINS

Fabindia Retailers of hand-woven garments, home linen, organic food products, floor coverings, body care products, lighting, tableware, cane baskets etc; has 46 stores in major Indian cities & in Rome, Dubai & Guangzhou; head office is in Delhi; sells online. Globus Stores Pvt Ltd Garment store chain owned by the RajanRaheja Group; has 13 stores in Mumbai, Thane, Delhi, Ghaziabad, Kanpur, Chennai, Indore, Bangalore, Ahmedabad, Lucknow; sells apparel for men, women & children. Koutons Retail India Ltd Integrated apparel manufacturing & retailing company based in Gurgaon, Haryana, with a network of around 700 exclusive brand outlets in India; deals in men's wear under the brands Koutons, Charlie Outlaw, Les Femme &Koutons Junior.
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Shopper's Stop Chain of fashion & lifestyle stores in Mumbai, New Delhi, Ghaziabad, Gurgaon, Jaipur, Bangalore, Chennai, Hyderabad, Pune & Kolkata; part of the K. Raheja Group; products include apparel, accessories, home dcor, gifts etc. Pantaloon Retail (India) Ltd Retail chain based in Mumbai; stores include Pantaloons (department store), Central (seamless malls), Blue Sky (fashion accessories), ally (fashion apparel for plus size individuals), Big Bazaar, Food Bazaar etc; has 100 stores countrywide. Lifestyle Retail chain with over 14 Lifestyle stores, 6 Home Centre stores and 1 baby shop store across Chennai, Hyderabad, Bangalore, Gurgaon, Delhi, Noida, Jaipur, Mumbai, Pune and Ahmedabad; part of the Landmark Group. Provogue Brand of fashion clothing by Acme Clothing Pvt. Ltd, Mumbai; also makes textiles; has a chain of exclusive outlets at 70 locations to sell its garments. Vishal Mega Mart Retail group based in New Delhi; has 49 showrooms in 37 cities; products include home furnishings, food mart, lifestyle products, stationery, travel accessories, sanitary ware, electrical, utensils, consumer durables, garments etc. Westside Chain of retail stores that deal in garments, home furnishings, cutlery, footwear etc; operated by Trent Ltd; stores are in Mumbai, Vadodara, Ahmedabad, Indore, Bangalore, Chennai, New Delhi, Noida, Ghaziabad, Hyderabad, Kolkata, Nagpur & Pune. Cantabil International Pvt Ltd Chain of garment stores, with 80 exclusive outlets across India; based in New Delhi; range includes sophisticated formalwear, party wear, casuals &ultra-casuals.

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SOME OTHER BRANDED RETAIL CHAIN ADEN, ALLEN SOLLY, ARROW, BLACKBERRYS, COLOUR PLUS, COTTONS
BY

CENTURY,

DUKE, GAP, GIORDANO, GLOBUS, GUESS, LEE, LEVIS, PARK AVENUE, SHEETAL, SPYKAR, WILLS, LIFESTYLE, WRANGLER, ARROW, DIGJAM, THE RAYMOND SHOP, BASICS, BENETTON, CLASSIC POLO, GENESIS, PARX, INDIGO NATION, TROUSER TOWN, SPYKAR, NAVIGATOR, TROUSER TOWN, ANITA, DONGRE, ANOKHI, VENFIELD, VENFIELD, PRO BASE, ZODIAC.

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CHAPTER - 3
3.1 COMPANY PROFILE

The Indus Fila Group is a Bangalore based company. The Indus Fila is an apparel manufacturer and exporter. Most of Indus Fila's revenues come from exports and the rest meager amount from trading. Textile manufacturer and apparel exporter Indus Fila has entered the domestic retail sector with its exclusive brand outlets for the mass market. The firm is going to set up around 500 outlets under John Hill brand across India over the next two years. INDUS FILA LIMITED Type Industry BRAND NAME Founded Headquarters Key people PRIVATE Textiles JOHN HILL 2008 Bangalore, India Nitin Mandhana- Chairman & Managing Director Products Mens wear, designers wear, jeans, mens formal, mens casual, trousers. Websites www.johnhill.in, www.indusfila.com

The Rs 500-crore Bangalore-based company is set to open 70 stores mainly in Tier-II and III towns. Around 90% of the stores will be under the franchisee model, while the remaining 10% will be owned and operated by the company. Indus Filas investment in the retail venture will be around Rs 25 crore.
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The BSE-listed firm currently has 50 outlets spread over 40,000 sq. ft. across India. It plans to take the store count to 130 by the end of the current financial. All the new 500 stores will account for 4, 00,000 sq. ft. The new stores will be rolled out in tier II and III towns. It will retail a range of western wear for men and women under the brand name John Hill within the price range of Rs 100750. It is also is in the process of setting up 1,00,000sq. ft. 1,50,000 sq. ft. of garment manufacturing plant in Bangalore with an investment of Rs 1 crore. The factory will come up on leased land and will have production capacity of 2,000 garments a day. The stores will retail a range of western wear for men with the Brand name of JOHN HILL and women were with the Brand name of MISS HILL with the price range Rs 300-600. As most of revenues come from exports and from trading. The company has entered into the retail segment at the time when export orders are thinning and companies see potential in the domestic market. INDUS FILA- The Key Factor That Attracted Them To Open Retail Chains In India:

India ranks 5th on global retail development index. It is going to be the 3rd largest economy in terms of GDP in next few years. It ranks high amongst the top 10 FDI destinations of the world. Stable and investor friendly Central Government at the helm of affairs. Introduction of Value Added Tax or VAT and tax reforms. High degree of professionalism and corporate ethics. Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and high returns on investments. To invest US $130 billion for the development of infrastructure, by 2010. To attract US $ 10 billion FDI for infrastructure development by 2008. Hordes of foreign investors are thronging in to invest in Indian retail markets. Highly educated English speaking young workforce. Vibrant and multi cultured cities. Till date the second largest employer after agriculture sector, for the huge semi-skilled Indian population.
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These bring Indus Fila to investment in the retail venture around Rs 20 crore.It is also is in the process of setting up 1, 00,000 1, 50,000 sq. ft. of garment manufacturing plant in Bangalore with an investment of Rs 1 crore. The factory will come up on leased land and will have production capacity of 2,000 garments a day. Now the Indus Fila group is planning to expand its retailing business to overseas. It is acquiring big brands in the US and Europe.

3.2 PRODUCT PROFILE

JOHN HILL MISS HILL

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3.2.1JOHN HILL
John Hill a premium brand Indus Fila is targeting youth with real good and performing quality garments, which is attractively priced with irresistible discounts. John Hill is bound to make a customer come back with the expectation of quality product of International level. Bangalore based exporter Indus Fila too has come out with its own brand JOHN HILL. Coming with through a chain of exclusive outlets. The vision of the john hill is to evolve into leading global lifestyle, brand with products ranging from Mens, women's, children apparel & accessories to complete collection. John Hill Brand VIR Retail Pvt. Ltd.: A 100% retailing subsidiary of Indus Fila Ltd. Its constantly upgrading technology and practices, complete Vertical Set up of Yarn Dyeing, Weaving, Processing, Apparel making, Designing Sampling & Development Delivery all in-house up to International standards enable it execute fast from Design to Delivery in todays fast evolving fashion trade.

3.2.2PRODUCT RANGE: Fashion apparel in 100% Cotton (Natural fibers)

Mens wear: Formal Casuals Party wear Shirts, Trousers, Denims, Chinos, Cargos, T-Shirts. Womens wear: Coming up subsequently in autumn / winter collection 09.

VISION: -To evolve into leading global lifestyle brand with products ranging from Mens, Womens, Children apparels and accessories to complete collection.

3.2.3ABOUT JOHN HILL:

A mass market brand targeting youth 23 yrs to 30 yrs,Early Jobbers predominantly & office executives 27 to 60 yrs. An effective sale price points of Rs 349/- to 699/- per garment with real good and performing quality bundled in it, which is attractively priced with irresistible discounts. John Hill is bound to make a customer come back with more friends to share another John Hill experience again & again.
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3.2.4ADVANTAGE JOHN HILL USP

Quality & appeal like International Brands, Priced very competitively attractive. upto international standards.

85% of the inputs are from the groups vertically integrated resources assuring strict QC

The in house concept of Design to Delivery backed by stringent QC practices, it shall

enable quick response to market opportunities and winning consumers confidence over a period of time, adding further sustainable strength in its retailing objective & brand building.

3.2.5OFFERS TO THE CUSTOMER

It is always on discount &its model is buy 1 get 2 free & special festival season buy 1 get 3 free. We will also allow customer to buy 1 pc at 60 to 65% discount. Our back end will be far better than CC & KOUTONS.

3.2.6VERTICAL SET UP:

Yarn Dyeing, Weaving, Processing, Apparel making, designing Sampling & Development Delivery all in-house up to International standards.

3.2.7SUPPORT & SERVICES TO JOHN HILL FRANCHISEES

Attractive product range, product design & development, merchandise life cycle servicing, cost effective & yet attractive interiors, versatile software (RXL Polaris), training, servicing, advertising/ promotions, dedicated help desk, sales support, express logistics.

3.2.8TERMS & CONDITION TO TAKE THE JOHN HILL FRNCHISE

It gives its franchisees flat 18% on sales. It will provide advertisement support such as local newspaper ads, paper inserts, hording at prime location sign board, visuals in shop & electronic media to follow. It provides carry bag, EDC machine, software & stocks against deposit. All taxes will be borne by us.
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3.2.9COMPETING WITH:Founded in 2008, JOHN HILL is a modern outfit that offers significant product whilecapturing the essence of an active urban lifestyle. As it offer international quality product in a low price range, it face the competition with .

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3. .3BUILD DING BR RANDS S FOR JO OHN HI ILL

Buildin ng a strong brand is a complex ta ask for John Hill. H This pa art spells out the tradi itional brand building b pro ocess, highli ighting imp portant factors that contrib bute to the e success of f each step alo ong the way y. The major characte eristics of succ cessful bran nds of Joh hn Hill are e also reviewe ed.

3.3.1 OVERVIEW O W OF THE E BRAND-BUILDING G PROCES SS

The bra and buildin ng process for John Hill H starts with the developmen d nt of a stro ong value proposition. Once e this has be een established, the next step is to o get custom mers to try the t brand. s developed d properly, , it should d If the offering is provide e a satisfac ctory exper rience and lead to a willingn ness to buy y again. To entice trial and repeat purchas se requires triggering t m mechanisms s, which are created through advertising, a , promotion, o selling, ect marke eting. The public relations, and dire compan ny needs to o communic cate the values of the brand and a then reinforce bran nd associatio ons to start the wheel of usag ge and exp perience, an nd keep it turning. Th hrough the combinatio on of the stimulu us of cons sistent com mmunication ns and sa atisfactory usage and d experienc ce, brand awarene ess, confide ence and bra and equity are a built.

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3.3.2 THE VALUE PROPOSITION

Brand-building starts with a clearly defined value proposition - a strong offer that a potential customer would find compelling and interesting. In order to do this, a company must develop a strong understanding of who their potential customers are, what they value and how the products or services should be optimised or configured to deliver this value. The value proposition must be continuously re-evaluated to respond to changes in the marketplace. Central to this value proposition, a brand must deliver a quality product or service that meets the functional needs of customers and differentiates itself from competitors. It should seek to augment its basic appeal with added value through the provision of additional products or services to delight customers. In this way, the brand can elicit feelings of confidence that it is of higher quality than competitors. As such, a compelling value proposition is the combination of an effective product or service (P), a distinctive brand identity (I), and added value (AV). These three characteristics are multiplicative rather than additive - each is essential. Without a good product or service, it is impossible to build a successful brand. Similarly, unless differentiation and awareness can be developed, it will never attract a strong client base. Added Value Added value is at the heart of building successful brands. Most buying decisions are influenced by brand values, which are additional to those based upon real performance. The large number of decisions, the pace of technical change, the number of competing alternatives and the large variety of advertising and selling messages, mean that buyers look for short cuts. Reputable brand names provide confidence and allow customers to cut through the risks and complexity of choice.

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3.3.3BRAND VALUES DERIVE FROM FIVE MAJOR SOURCES:

Experience of Use - if a brand provides good service over time, it acquires added values of familiarity and proven reliability. User Associations - brands frequently acquire an image from the type of people who are seen as using them. Advertising and sponsorship are often used to convey images of prestige or success by associating the brand with glamorous personalities or celebrities. For instance: Britney Spear and David Beckham with Pepsi Cola, or Liz Taylor with Channel 5. Belief in Efficacy - in many cases, if customers have faith that a brand will work, it is more likely to work effectively for them. For pharmaceuticals, cosmetics and high-tech products, faith in brand generates satisfaction in use. Beliefs in efficacy can be created by comparative evaluations and rankings from consumer associations, industry endorsements and newspaper editorials. Brand Appearance - the design, layout and appearance of the brand can clearly affect preference by offering cues to quality. Manufacturers Name and Reputation - In many situations a strong company name (e.g. Coca-Cola, Gillette, Sony, Hewlett-Packard, Kelloggs) attached to a new product will transfer positive associations, providing confidence and incentive to trial.

3.3.4

DEVELOPING THE FRAMEWORK & COMMUNICATING THE VALUE PROPOSITION Once the value proposition is clearly defined, the John Hill must ensure that it develops

the appropriate structure, systems, strategy (partnerships and alliances), skills, management style, culture and staff needed to support, deliver and reinforce this value. The value proposition must then be articulated in terms of the marketing mix - often referred to as the 4Ps - Product features, Price, Promotion and Place (distribution strategy). In term of service, 3 more Ps must be attached: People, Process, and Physical evidence. The value proposition must be communicated to entice customers to try the product. If the offering is developed properly, it should lead to satisfaction and re-purchase. Before potential customerscan buy a product, they must learn about it. This learning is called the adoption process.
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3.3.5 ADOPTION PROCESS:

Awareness

Interest

Evaluation

Trial

Adoption

The Innovation-Adoption Model consists of: Awareness - The Company has to create awareness of the brand, and its products / services. Advertising and PR are common tools for achieving awareness. Interest - Customers need to be stimulated to seek information about the brands uses, features and advantages. Evaluation - Customers consider whether the product / service will meet their particular needs. Personal sources such as word-of-mouth from friends, colleagues and opinion leaders become important influences at this stage. Trial - The customer tries the product / service for the first time and decides whether to adopt it based on their expectations, and the product / service's perceived performance. Adoption - The customer is satisfied and decides to make regular use of the product. Traditionally, companies have used the tools of the promotions mix - advertising, direct marketing, sales promotion, personal selling and public relations / publicity - to move customers through the adoption process. Advertising and public relations can be effective in generating awareness and interest. Sales promotions and sampling are often used for encouraging evaluation and trial. It is beneficial for companies to accelerate the adoption process before competitors emulate the benefits they offer. Enticing customers to repurchase and adopt the brand not only requires a successful trial experience, but enhanced customer interaction through relationship building.

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3.3.5 THE IMPORTANCE OF CUSTOMER SATISFACTION AND LOYALTY

Customers at the lowest and highest ends of the satisfaction scale tend to have intense feelings about a brand and its products / services. The customers at the bottom end of the scale are "terrorists" - those who actively attack the brand telling others not to buy from the company. At the opposite end of the satisfaction spectrum are "apostles" - customers who are satisfied and loyal and talk favourably about the brand. Loyalty is derived when customers are continuously satisfied over time. This satisfaction encompasses the whole experience and not just a company's products or services. Customers that are passionately or emotionally loyal are those that have built trust in a company, and believe that it will always act in their best interest. Trust is critical for a brands success. Some traditional companies identified as having established a strong trust relationship with their customers include: Disney, Federal Express, Hewlett-Packard, Johnson & Johnson, Saturn, Southwest Airlines and Xerox. Figure 3.2:Customers satisfaction scale FIGUR IMPACT OF COMPETITIVE ENVIRONMENT High
Hostages Apostles

Loyalty

Low

Terrorists

Mercenaries

Low

Satisfaction

High

Loyal Customers are assets. The benefits of strong customer relationships are: The average cost of acquiring a new customer is five times more than it costs to retain an existing one. Loyal customers tend to spend more. Regular customers tend to place frequent, consistent orders. Satisfied customers are the best advertisement - they provide good word-of-mouth and are the best salespeople for the product / service. They are willing to pay premium prices to a supplier they know and trust. Gaining market entry or share becomes very difficult for competitors. It is easier to communicate with them on a regular basis.
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3.3.6

BUILDING CUSTOMER RELATIONSHIPS:

Building relationships with customers extends beyond a single transaction. This is often

referred to as Customer Relationship Management(CRM). This focuses on establishing a long-term, multi-transaction relationship, when each trusts the other to deal fairly and reliably. Over time, this process enables an exchange of information, providing insight into customers needs and wants. This information is a key competitive advantage, allowing companies to communicate regularly with their customers and customise their interaction. In this way, companies can increase buyers' satisfaction, making them less likely to switch to a competitor. Customer service is an important element of this relationship. Berry and Parasuraman (1991) identified three customer relationship-building approaches. Financial Benefits - such as airline frequent flyer programmes, & loyalty / discount cards. Social Benefits - by learning customers' individual needs and wants and individualising and customising service and contact with the customer. Structural Ties - for example, the company may supply customers with special equipment or tools (e.g. Internet linkages, software) to help customers interact with the company. Through building relationships with customers, companies can increase the value of each customer, while strengthening the position and value of the brand.

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3.3.7 CHARACTERISTICS OF SUCCESSFUL BRANDS

Several factors contributing to the success of brands have been identified, including: Quality Product / Service Experience - Satisfactory experience is the major determinant of brand values. If the quality of the experience deteriorates, or if the brand is surpassed by superior offers from competitors, then its position will be undermined. First-Mover Advantage - Being first into the market does not necessarily bring success, but it makes the task easier. It is easier to capture a share of the consumer's mind and build a customer base, when the brand has no competitors to rival its position. Unique Positioning Concept - If the brand is not the innovator, it must have a unique positioning concept - a segmentation scheme, value proposition or augmented brand, which will add value and distinguish it from competition. Strong Communications Programme - A successful brand requires an effective selling, advertising or promotional campaign, which will communicate the brand's existence, its function and psychological values, trigger trial and reinforce commitment to it. Without building awareness, comprehension and intention to buy, the brand is meaningless. Time and Consistency - Rome was not built in a day. So is a brand name. It often takes years for a brand to build up the added values, and establish a trusting relationship.

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3.4SWOT ANALYSIS OF JOHN HILL

STRENGTHS: Strong back support from the parent company i.e. Indus Fila. Well established in the Textile Industry as the company is involve in manufacturing and export from many years. Very completive in market as it is well trendy and updated because of its international business. Good knowledge about Indian customer and domestic market. Apparels are of International standard. WEAKNESSES: The retail sector is very price sensitive; it is very hard for new comers like John Hill to sustain in the market. Low brand awareness about the John Hill as it was concerned with export. Saturated only in South India. Low diversification of product as only provide men and women wear. OPPORTUNITIES: Fast and steady growth of Indian economy. High growth of well-educated and trendy young population. Huge opportunity in retailing as surety of high profit on investment. Emerging markets like India has a new rich generation of consumers in search of quality products. Government policies in favorable for the growth of organized retail. Opportunity to expand its business in North Indian cities. As it exports its product to other countries, it can expand its brand globally. THREATS: Highly competitive retail market as many big Indian and International brands are entering in this segment. Expectation of Indian customer may be different from International standard. Highly unstable international trade which can affect Indus Fila. Distinct and multi cultured cities in India has different taste and preferences. The retail sector is becoming price competitive i.e. consumers will look for a better deal.
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CHAPTER - 4

4.1 OBJECTIVES OF THE STUDY

To gain an understanding of the role of brands and how they have traditionally been built. To explore how the changing environment of brand-building, and to identify new sources of value, tools and strategies to build brands ofJohn Hill. To identify the key factors and characteristics that contributes to the development of successful apparel brands.

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4.2 SCOPE OF THE STUDY

To understand the vital role a brand name which will contribute to the success of a apparel retail business, it will be necessary to understand the context of current issues within the Textile industry and to identify the main players within the apparel retail segment, their brand building strategies, their successes and failures, and lessons from them.

This project report will be helpful for the newly entered garments company for building its brand name in the apparel retail business. It will give information about competitors and increase awareness level about companies regarding consumer perception. This information will be helpful for one who is thinking to open a new branded retail outlet in Chennai. The main intention is to analyze the response given by the store owner or franchisers and to arrange programs to build marketing strategies for brand building.

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4.3 LIMITATION OF THE STUDY

Since sample size is only 50, this is not a true representation of the population as a whole. Level of accuracy of the results of research is restricted to the accuracy level with which the investors have given their answers and the accuracy level of the answers cannot be predicted. Some errors could have occurred because of misINTERPRETATION of the questions as some of the customers are poor in English. Some of the data are collected from word-of-mouth that can be biased. Few customers filled their questionnaire in a hurry so they could not be relied upon.

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CHAPTER 5
5.1RESEARCH METHODOLOGY
5.1.1POPULATION:
Most statistics handbooks define a sample as a subset of elements drawn from a larger unit called a population. In other words the no. of respondents in a particular area or sample area is called population.

5.1.2

SAMPLING SIZE : A sample of fifty was chosen for the purpose of the study. Sample consisted of

store owner, franchisers, and managers of direct company show room.

5.1.3 SAMPLING METHODS:

Probability sampling requires complete knowledge about all sampling units in the universe. Due to time constraint non-probability sampling was chosen for the study.

5.1.4

FIELD STUDY: Directly approached respondents (store owner, franchisers, and managers of

direct company show room).

5.1.5

SAMPLE AREA: The sample area was Chennai (TN)

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5.2

METHODOLOGY OF THE STUDY

Methodology refers to the way adopted for collecting information and data regarding a

matter. The increasingly complex nature of business has focused attention on the use of research methodology in solving managerial problems. Information expressed in appropriate quantitative from is known as data. The source of data includes two types: Primary data Secondary data Primary Data: Primary data are generally information gathered are generated by the researchers for the purpose of the project immediately at hand .When the data are collected for the first time the responsibility for their processing also rests with the original investigated. The Primary source for data collection was:The questionnaire filled up by the apparel store owners Primary data is that which is collected a fresh and for the first time, and thus happen to be original in character. The methods used for collecting primary data are:

Questionnaires Interview method

SECONDARY DATA: Secondary data are those which have already been collected by some other agency and which have already been processed. The instruments used for collecting secondary data are: Company records and manuals Magazines and journals Marketing editions and books Newspapers Web sites.

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5.3

STATISTICAL TOOLS

5.3.1 PERCENTAGE ANALYSIS A proportion or share in relation to the whole of an amount, such as an allowance, duty, or commission that varies in proportion to a larger sum, such as total sales: work for a percentage. An example is the evaluation of a product line in terms of pricing, quality, service, demand, and market share done by the marketing staff. The purpose of the effort is to identify problems so that marketing management can make better decisions to enhance profitability

5.3.2

CHI-SQUARE TEST: The objective of the chi-square test is to determine whether there is any significant

difference exists among the various groups. Chi-square test involves comparison of expected frequency (Ei) with observed frequency (Oi) to determine whether the difference between the two is greater than the tabulated value that might occur by chance. There are 5 steps in using chi-square test. 1. The difference between each observed frequency and each expected frequency is computed. 2. The difference is squared. 3. Each squared difference is divided by the respective expected frequency. 4. Their quotients are added together to obtain the computed chi square value. 5. This computed value is then compared to tabulate chi-square value. If the computed x2 value is greater than the tabulated x2 value at a predetermined level of significance and degrees of freedom, the hypothesis is rejected. On the other hand, if the calculated x2 value is less than the tabulated valued, the hypothesis is accepted. X2 = (O-E)2/E

Where, O = Observed frequency E = Expected frequency

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CHAPTER 6 Analysis &INTERPRETATION

Brand which has been visited during survey. Name of Franchisee 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Navigator Cotton county Levis Club fox Raymond Flora John player Star plus Arrow Alankar Planet fashion Basic life Surang Mahaveera Robe Koutons Van heusen LMG Brandspvt. Trend line Style one

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TAB BLE 6.1:

Sales of f the show room per month. No. of resp pondent 15 26 6 5 4 50 0 Percentage e 30 52 10 8 100

Sales per month h 2, 00,001 to 4, 00,001 4, 00,00 01-6, 00,00 00 6, 00,00 01-8, 00,00 00 above e 8, 00,001 Total

CHART T 6.1:

60 50 40 30 20 10 0 2,00,001to 4 00,001 4, 4,00,001 6,00,000 6,00,001 000 8,00,0 Percentage a above 8,00,001 0

INTER RPRETATIO ON: Form the above a table e it is found d that approx. 52% st tore have sales of Rs4 400000 to Rs600000 per p month. Approx. 30 0% stores ha ave sales of f Rs2 lack to o Rs4 lack. Approx. 10 0% stores ha ave more th han Rs80000 00.

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TABLE E 6.2: Num mber of customer visit in a particu ular day.

BRAND D NAME Raymon nd Flying mac chine Pantaloo on John play yer Derby y VanHuse en Witco Navigato or Basic Other CHART T 6.2:

NO. OF F CUSTOM MER 150 50 250 350 200 80 120 250 100 110

No oofcustomervisit v inadayintheout tlets.

350 0 250 150 50 200 8 80 120 250 100 110

I INTERPRE ETATION: Ac ccording to the chart Jo ohn Player has h the high hest sale. Fro om the char rt pantaloon ns and navig gator are the e second hig ghest sale with w equal nu umbers.

TAB BLE 6.3:

Current t rent of the store in per r sq. ft. form mat.

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Rent t of store in n per sq. ft. . forma at Less than 1000 1001 1250 1 1251 1500 1 Above 1501 Total l

No o. of respon ndent 10 12 15 13 50

P Percentage 20 24 30 26 100

CHART T 6.3:

30 25 20 15 10 5 0 Lessthan t 1000 1001 1250 1251 1 1500 Percenta age Above1501 1

INTER RPRETATIO ON: From the ab bove table it i is found th hat there are e30% respo ondents are p paying rent t in between Rs s1250 to Rs s1500. From the ab bove table it i is found th hat about 20 0% of the re espondent a are paying rent less then Rs100 00.

TAB BLE 6.4:

Averag ge number of o the custom mer visit per r day.

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No. of custo N omer Less 25 5 25-50 50-100 above 10 00 Total

No. . of respond dent 10 24 14 2 50

P Percentage 20 48 28 4 100

CHART T 6.4:

5 50 4 45 4 40 3 35 3 30 2 25 2 20 1 15 1 10 5 0 Les ss25 2550 5010 00 Percentage e ab bove100

INTER RPRETATIO ON: According to the above chart appr rox.48% of f show room ms have aver rage numbe er of customer visit is 25 to 50. Approx. 20 0% of show rooms have e less than 25% 2 custom mer visit.

TAB BLE 6.5:

Custom mer conversi ion rate according to th he sale.

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Custom mer Conver rsion Rate

0-20% 20%-40% % 40%-60% % Above 60% %

No. . of respond dent 3 15 22 10 50

P Percentage 6 30 44 20 100

Total CHART T 6.5:

45 40 35 30 25 20 15 10 5 0 020% 20%40% 40%60% Percentage Above60%

INTER RPRETATIO ON: According to the abo ove chart 44% 4 of the e stores cl laim that th he rate of customer conversion to their store is 40% to o 60%. % of the store believes that custome er conversio on rate is 20 0% to 40%. About 30%

TAB BLE 6.6:

How much m sales im mprove in holidays. h

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Sal les Improv vement

0 - 10% 10% -20% % 20% - 30% % Above 30% %

No. . of respond dent 5 10 20 15 50

P Percentage 10 20 40 30 100

Total CHART T 6.6:

40 35 30 25 20 15 10 5 0 0 10% 10%20% % 20% % 30% Percent tage Above30%

INTER RPRETATIO ON: According to the abov ve chart 40 0% of the stores s claim m that the sales improv vement of i holidays is 20% to 30%. their store in About 30% % of the stores believe that sales im mprovement t rate is abov ve 30%. About 10% % store belie eve that sale es improvem ment rate is less than 10 0%.

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TAB BLE 6.7:

Gender r wise customer walk in n to the stor re.

Gender Male Female Total

No. of respondent r t 30 20 50

Percent tage 60 40 100 0

CHART T 6.7:

Female e 40%

Male 60%

INTER RPRETATIO ON: According to the above chart 60% % of the cust tomers are male. m From the ab bove chart 40% 4 custom mer are fema ale.

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TABLE E 6.8: Typ pes of appar rels which are in more demand. Apparel ls Mens form mal Mens casu uals W Womens fo ormal W Womens ca asuals Total No. . of respond dent 15 20 5 10 50 P Percentage 30 40 10 20 100

CHART T6.8:

40 35 30 25 20 15 10 5 0 Mensformal Men nscasuals Womensformal Wome enscasuals

INTER RPRETATIO ON: According to the abov ve chart de emand of Mens M casua als is 40% and Mens formal is 30%. According to the abov ve chart dem mand of wom mens casual is 20% & Womens s formal is 10%.

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TAB BLE 6.9:

Averag ge frequency y of customer retention n. (Frequenc cy of purcha asing of

e existing customer.) Re etained Cus stomer 0-10% 10-20% % 20-30% % above 30% % Total . of respond dent No. 5 15 18 12 50 P Percentage 10 30 36 24 100

CHART T 6.9:

40 35 30 25 20 15 10 5 0 010% 1020 0% 2030% above30%

INTER RPRETATIO ON: According to the abov ve chart 36% % of the stor res claim th hat the rate of customer r retention to their stor re is 20% to o 30%. About 30% % of the stores believe that custome er retention rate is 10% % to 20%. About 25% % of the store believe th hat customer r retention rate r is above e 30%.

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TAB BLE 6.10:

Custom mer segment tation accor rding to inco ome group. No o. of respon ndent 5 25 15 5 50 Percentage 10 50 30 10 10 00

Custome er segmentation Lowe er middle (R Rs200001- 400000 p.a.) M Middle (Rs4 400001-600000 p.a.) Upper middle (R Rs600001-8 800000 p.a.) High (abov ve Rs80000 00 p.a.) Total

CHART T 6.10:

5 50 4 45 4 40 3 35 3 30 2 25 2 20 1 15 1 10 5 0 Lowermiddle m (Rs 200001 1 400000 p.a.) p Middle(Rs s 4000016000 000 p.a.) Uppermiddle(Rs 60000 01800000 p.a.) Percen ntage High(above eRs 800000p. .a.)

INTER RPRETATIO ON: According to the abov ve chart 50% % of the stor res owner believes b tha at their cust tomers are of the incom me group of f Middle cla ass i.e. Rs 400000 4 to Rs600000. R According to the abov ve chart 30% % of the stor res owner believes b tha at their cust tomers are of the incom me group of f Upper mid ddle class i.e. Rs60000 00 to Rs8000 000.

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TAB BLE 6.11: Age Grou up

Purchas se of clothes on the bas sis of age gr roup. No o. of respon ndent 5 12 25 8 50 Percentage 10 25 50 15 100

U Under 10 years. Betw ween 10 15 1 years. Betw ween 15 35 3 years. Above 35 years y Total

CHART T 6.11:

5 50 4 45 4 40 3 35 3 30 2 25 2 20 1 15 1 10 5 0 Under10 1 years. Between10 15 5 Between15 1 35 Abo ove35years years. years s. Percenta age

INTER RPRETATIO ON: According to the abov ve chart stor res owner believes 50 0% of their customers are of the age group of o 15 years to 35 years. . According to the abov ve chart stor res owner believes 25 5% of their customers are of the age group of o 10 years to 15 years. .

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TAB BLE 6.12:

Number of store ha aving single e brand.

Type of st tore Single Bran nded Multi Bran nded Total

No o. of respon ndent 20 30 50

Percentag ge 40 60 100

T6. 12: CHART

Sin ngleBranded

MultiBranded

40%

60%

INTER RPRETATIO ON: According to the above chart appr rox. 40% of f the show rooms r are si ingle brande ed. According to the above chart appr rox. 60% of f the show rooms r are m multi brande ed.

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TAB BLE 6.13: Size of sh hirt Small Medium m Large Extra Lar rge Total

Demand of shirts on the basis of size. N of respondent No. 8 15 20 7 50 Percentag ge 16 30 40 14 100

T 6.13: CHART

40 35 30 25 20 15 10 5 0 Small Medium m Large L Percentage ExtraLarge e

INTER RPRETATIO ON: According to the above chart appr rox. 40% cu ustomers de emand large e size of shir rts. According to the above chart appr rox. 30% cu ustomers de emand medi ium size of shirts.

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TAB BLE 6.14:

Mode of advertisem ment which h is more pre eferable. No. of resp pondent 10 5 20 15 50 Percenta age 20 10 40 30 100

Mode of adv M vertisement t Television Inter rnet Newsp paper Hoard ding Tot tal

T 6.14: CHART

4 40 3 35 3 30 2 25 2 20 1 15 1 10 5 0 vision Telev Internet Newspap per Percentag ge Ho oarding

INTER RPRETATIO ON: According to the above a char rt approx. 40% stor res owner r prefer newspaper advertiseme ent. According to the above e chart appr rox. 30% stores owner r prefer hoa arding adver rtisement.

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TAB BLE 6.15:

Way to analyse the e competitors sales. No o. of respon ndent 20 12 18 0 50 Percentage e 40 24 36 0 100

Co ompetitor analysis a Pricing g C Company an nalyse B Brand evalu uation Other Total

CHART T 6.15:

40 35 30 25 20 15 10 5 0 Pric cing Company yanalyse Percentage e Brandeva aluation

INTER RPRETATIO ON: According to the abov ve chart appr rox. 40% st tores owner r analyse th heir competi itor on the basis of pricing. ve chart appr rox. 36% st tores owner r analyse th heir competi itor on the According to the abov basis of bra and.

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TAB BLE 6.16:

Preferre ed strategy used for com mpetitive ad dvantage. No o. of respon ndent 20 8 12 10 50 Percentag ge 40 16 24 20 100

Com mpetitive Ad dvantage Quality y Discount offer o Pricing g Advertisem ment Total

ART 6.16: CHA

4 40 3 35 3 30 2 25 2 20 1 15 1 10 5 0 Quality Discountoffe er Pri icing Percenta age Advertisement

INTER RPRETATIO ON: According to the abov ve chart app prox. 40% respondent preferred p Quality as co ompetitive advantage. According to the abov ve chart app prox. 24% respondent r p preferred pr ricing as co ompetitive advantage. About 20% % responden nt preferred advertiseme ent as comp petitive adva antage.

TAB BLE 6.17:

Strategy y for sales promotion. p

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S Sales Prom motion Discoun nt Free Gif ft M Member ship p code None Total CHA ART 6.17:

o. of respon ndent No 25 5 15 5 50

Percentag ge 50 10 30 10 100

50 0 45 5 40 0 35 5 30 0 25 5 20 0 15 5 10 0 5 0 Disco ount FreeGift Memb bership co ode Percenta age None

INTER RPRETATIO ON: According to the abov ve chart approx. 50% respondent t preferred discount as s for sales promotion. From the above a chart t approx. 30% respon ndent prefer rred membe er ship card d as sales promotion. rt approx. 30% respo ondent do not n use an ny sales pro omotional From the above char activity.

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6.18 Different Source of Advertisem ment on the e Basis of Effectivenes ss and Popu ularity.
Chart 6.18.1: Effe ectiveness of o methods

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Banners mers E-mails to custom Butt tons Pub blic relations Mag gazines Spo onsorships New wspapers Radio Dire ect mail Tele evision E-mail to opt-in lis sts Outd door Affil liate programs s

Chart 6.18.2: Pop pularity of methods m

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Banners s E-mails to t customer rs Buttons Public re elations Magazin nes Sponsor rships Newspa pers Radio Direct mail m Televisio on E-mail to o opt-in lists s Outdoor r Affiliate programs

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6.19TEST FOR INDEPENDENCE OF ATTRIBUTES

6.19.1 2 TEST BETWEEN INCOME GPOUP AND CUSTOMER RETAINSON :

CUSTOMER RETENTION INCOME GPOUP Rs2 LAKH - Rs4 LAKH p.a. Rs4 LAKH-Rs6 LAKH p.a. 1 Rs LAKHRs8 LAKH p.a. Above Rs8 LAKH p.a. TOTAL 0 0 2 6 3 2 13 8 5 1 15 10 5 4 20 25 15 5 50 1 5 10 11 15 2 1 16 20 ABOVE 20 1 5 TOTAL

H0 =The two attribute Income group and Customer Retention are dependent. H1 = The two attribute Income group and Customer Retention are independent.

LEVEL OF SIGNIFICANCE = 5% DEGREE OF FREEDOM = (R-1) (C-1) (4-1) (4-1) = 3*3 = 9 TEST STATISTIC CHI SQUARE = (O-E)2/E O = OBSERVED FREQUENCY E = EXPECTED FREQUENCY E = (Raw total * column total) / Total number of sample EXPECTED FREQUENCY TABLE 1 1 .2 2 1 3 .6 4 .2 frequency 2 2 1.3 6.5 3.9 1.3 13 3 1.5 7.5 4.5 1.5 15 4 2 10 6 2 20 Frequency 5 25 15 5 50

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Applying 2test. 0 1 1 0 0 2 6 3 2 1 8 5 1 1 10 5 4 .2 1 .6 .2 1.3 6.5 3.9 1.3 1.5 7.5 4.5 1.5 2 10 6 2 E .640 0.000 0.360 0.040 0.490 0.250 0.810 0.490 0.250 0.250 0.250 0.250 1.000 0.000 1.000 4.000 (O-E)2 3.20 0.00 0.60 0.20 0.37 0.038 0.20 0.376 0.166 0.033 0.055 0.166 0.500 0.000 0.166 2.00 08.07 TOTAL For V = 9; 2 0.05 tabulated value is 16.9. 2 calculate value is 08.07 INTERPRETATION: The calculate value of 2 is much lesser than the table value. Then reject H1; The two attribute Income group and Customer Retention are independent. (O-E)2/E

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6.19 .2.2TEST BETWEEN VISITING CUSTOMER AND CUSTOMER

CONVERSION. VISITING CUSTOMER BELOW 25 26 -50 51 75 ABOVE 75 TOTAL 0 - 20 1 1 1 1 4 CUSTOMER CONVERSION 20 - 40 4 6 1 1 12 40 - 60ABOVE 60 3 2 16 7 2 28 2 1 1 6 TOTAL 10 25 10 5 50

HO = the two visiting customer and customer conversion are dependent. H1 = the two visiting customer and customer conversion are independent. LEVEL OF SIGNIFICANCE = 5% DEGREE OF FREEDOM = (R-1) (C-1) (2-1) (3-1) = 1*2 = 2 TEST STATISTIC CHI SQUARE = (O-E)2/E O = OBSERVED FREQUENCY E = EXPECTED FREQUENCY E = (Raw total * column total) / Total number of sample 1 1 .8 2 2 3 .8 4 .4 frequency 4 2 2.4 6 2.4 1.2 12 3 5.6 14 5.6 2.8 28 4 1.2 3 1.2 .6 6 Frequency 10 25 10 5 50

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Applying 2 test. O 1 1 1 1 4 6 1 1 3 16 7 2 2 2 1 1 .8 2 .8 .4 2.4 6 2.4 1.2 5.6 14 5.6 2.8 1.2 3 1.2 .6 E 0.04 1 0.04 0.36 2.56 00 1.96 0.04 6.76 4 1.96 0.64 0.64 1 0.04 0.16 (O-E)2 0.05 0.5 0.05 0.9 1.06 00 0.816 0.033 1.20 0.285 0.35 0.228 0.533 0.33 0.033 0.266 6.634 TOTAL For V = 9; 2 0.05 tabulated value is 16.9. 2 calculate value is 6.634 (O-E)2/E

INTERPRETATION: The calculated value of 2 is much lesser than the table value. Then reject H1. The two visiting customer and customer conversion are independent.

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6.19.3.2TEST BETWEEN SALES PER. MONTH AND COMPETITIVE

ADVANTAGE.

SALES 2 4 LAKH 4 6 LAKH 6 - 8 LAKH ABOVE 8 TOTAL

COMPETITIVE ADVANTAGE QUALITYDISCOUNTPRICING ADVERTISEMENT 7 2 5 1 11 1 1 20 4 1 1 8 5 1 1 12 6 2 1 10 15 26 5 4 50

TOTAL

H0 = the two attributes sales per. month and competitive advantage are dependent. H1 = the two attributes sales per. month and competitive advantage are independent. LEVEL OF SIGNIFICANCE = 5% DEGREE OF FREEDOM = (R-1) (C-1) (3-1) (3-1) = 2*2 = 4 TEST STATISTIC CHI SQUARE = (O-E) 2/E O = OBSERVED FREQUENCY E = EXPECTED FREQUENCY E = (Raw total * column total) / Total number of sample

1 1 6 2 10.4 3 2 4 1.6 frequency 20

2 2.4 4.16 .8 .64 8

3 3.6 6.24 1.2 .96 12

4 3 5.2 1 .8 10

Frequency 15 26 5 4 50

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Applying 2 test between sales per. month and competitive advantage: O 7 11 1 1 2 4 1 1 5 5 1 1 1 6 2 1 6 10.4 2 1.6 2.4 4.16 .8 .64 3.6 6.24 1.2 .96 3 5.2 1 .8 E 1 0.36 1 0.36 0.16 0.0256 0.04 0.129 1.96 1.53 0.04 1.6 4 0.64 1 0.04 TOTAL (O-E)2 0.166 0.034 0.5 0.225 0.066 6.15 0.05 0.202 0.544 0.24 0.033 1.66 1.33 0.12 1 0.05 12.37 (O-E)2 / E

For V = 9; 2 0.05 tabulated value is 16.9. 2 calculate value is 12.37. INTERPRETATION: The calculated value of 2 is much lesser than the table value. Then reject H1. Hence there is an no association between sales per. month and competitive advantage.
.

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CHAPTER - 7

7.1 FINDINGS
There is a stiff competition in the branded apparel segment. For men wear, men customers himself prefer to do purchasing. As the population and income level of people is increasing the size of apparel retail market is also increasing. Many Indian textile exporter and international apparel retailer are entering in the retail segment. Marketing strategies like pricing, advertisement, offers and others are concentrated on the middle level income group of customer. After market survey we found that the rent of the store depends on the market area like for Pondy Bazar it is in between Rs 1200 to 1500. That most of the retailers analyze the competitor sales through the brand evaluation and pricing. That most of the outlets are giving the price offer to the customer for the consumer sales promotion. The average sale of the major are in between 4 lacks to 8 lacks. During week days and holy days the frequency of customer are relatively high. By analyzing the report it has been found that it is very hard to satisfy the customer as the conversion rate is approx. 50%. The majority numbers of customer are of the age group of 18 years to 35 years. Most of the stores use to keep apparels of more than 2 Brand. In single branded show rooms, stores are either franchisee or direct company show rooms. The demand of middle and large size clothes are higher in the Indian market. For promotional activity newspaper advertisement are highly preferred. Pricing and quality are the main factor for differentiating brands.

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7.2SUGGESTIONS
It is recommended that the company should open exclusive outlets in small cities because the customers in these areas are pertaining to the middle income group and the demand for the less price garments is more. It should maintain proper channel of distribution of the product. The company needs to create awareness among the people about the new brand, which has emerged in the mens wear. It should take up promotional campaign such as news print advertisement, John Hill sign board should be displayed at all the major retail outlets. While launching the new product into retailing it is advisable that the company should provide some offer to the retailers to encourage them to keep stock of John Hill. The company should give special focus on quality and customer expectation for the customer retention for the building of its brand name.

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7.3 CONCLUSION

The apparel retail market is finding newer entrants from the exporting community. A large batches of

exporters have turned their eye to the domestic retail market, armed with the strengths of designing and resourcing which they have achieved from the foreign players. The main factors for the growth of the domestic demand is the growth in the young population, the increase in the general income level, the transformation of the consumption patterns with the changes in the income and also the phenomenal growth of the organized retail sector. To compete in the domestic as well as the global market, creating, and sustaining a strong brand image is necessary. Some apparel makers attempt to create a brand for their product in the global market, while many others just supply to international buying houses or retail chains according to their specifications. Branded apparels not only add a stylish image to the apparel, but it also gives them an identity.

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8. APPENDIX
QUESTIONNAIRE
1. Name of the franchisee : ----------------------------------------2. Which brand show room are you having? ---------------------------------------------------------------------------------3. Area where the show room is located? --------------------------------------------------------------------------------4. What is the rent per sq. ft. format of that area? a) Less 1000 c) 1251- 1500 b) 1001-1250 c) Above 1500

5. Sale of the apparels in show room (lakhs/month)? a) 2, 00,001 to 4, 00,001 c) 6, 00,001-8, 00,000 b) 4, 00,001-6, 00,000 d) above 8, 00,001

6. No. of Customer visit in a particular day? a) Less 25 c) 50-100 b) 25-50 d) above 100

7. Customer conversion rate in terms of sale? a) 0-20% c) 40%-60% b) 20%-40% d) Above 60%

8. Does there is extra sales on the weekends and on holidays? a) 0 - 10% c) 20% - 30% b) 10% -20% d) Above 30%

9. What gender of customer is coming more often to your show room? a)Male b)Female
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10. What type of clothes are mostly sold from your show room? a) Mens formal c) Womens formal a) 0-10% c) 20-30% 12. Which Income group you target? a) Lower middle (Rs-40001- 80000 p.a.) c) Upper middle (Rs - 120001-160000 p.a.) 13. Which age group you target? a) Under 10 years. c) Between 15 30 years. 14. What are the main sources of advertisement? a) Television b) Internet c) Newspaper d) Hoarding 15. How many brands or individual models were examined in the retail stores? a) Peter England b) Cotton County c) John Player d) Others 16. What size of Shirts are more in demand. a) Small b) Medium c) Large d) Extra Large 17. How do you analyze the competitor sales? a) Pricing b) Company analyze c) Brand evaluation d) other 18. Which types of strategy do you follow most for competitive advantage? a) Quality b) Discount offer c) Pricing d) Advertisement 19. What do you do for the consumer sales promotion? a) Discount b) Free Gift c) Member ship code d) none 20. Please indicate the number of Consumers report that they returned in the store in the searching for the product purchased: a) 5 10 b) 10 15 c) 15 20 d) 20- above
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b) Mens casuals d) Womens casuals b) 10-20% d) above 30%

11. What is the frequency walk in of your existing customer in a year?

b) Middle (Rs- 80001-120000 p.a.) d) High (above Rs 160001 p.a.)

b) Between 10 15 years. d) Above 30 years.

Bibliography

WEBSITE:
www.indusfila.com www.johnhill.com www.wikipedia.com www.google.com www.businessline.com BOOKS: Creating Powerful Brands (3rd Edition) Marketing Management (The 12th Edition) Marketing Research : Leslie de Chernatony& Malcolm : Philip Kotler Kevin Keller. : C.R.Kothari

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