A STUDY ON CREATION OF LUXURY BRAND SILK CHIP TECHNOLOGIES

A project report submitted to SCHOOL OF MANAGEMENT In partial fulfillment of the requirements for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION By RAGHUVARAN.J.D REG.NO.35080431 Under the guidance of

MR.SENTHIL KUMAR
FACULTY MEMBER

SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY KATTANKULATHUR !03"03 MAY "010

BONAFIDE CERTIFICATE
This is to certify that this project report titled #A STUDY ON CREATION OF LUXURY BRAND AT SILK CHIP TECHNOLOGIES$ is the bonafide work of M%. RAGHUVARAN.J.D& R'(.)*+ 35080431 who carried out the research under M%. S'),-./ 0123%& F341/,5 M'26'%. 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.

S.()3,1%' *7 .),'%)3/ (1.8' 9M%. S'),-./ K123%:

S.()3,1%' *7 HOD

D3,'+ P/34'+

DECLARATION

I hereby declare that this project report '),.,/'8 A S,185 O) C%'3,.*) O7 L1;1%5 B%3)8 .) S./0 C-.< T'4-)*/*(.'= submitted for the award of degree of M3=,'% *7 B1=.)'== A82.).=,%3,.*) in SR !ni"ersity is a #one$fide work done by me after completing %inal

&roject Internship Training at S./0 C-.< T'4-)*/*(.'=& C-'))3. for a period of ' month. &lace( Chennai )ate(
Raghu"aran.*.) %I+,- ./,R $ #,

School 0f SR

anagement !ni"ersity

ACKNO>LEDGEMENT

I am thankful to the D%. JAYSHREE SURESH& D'3) ? SCHOOL OF MANAGEMENT& SRM UNIVERSITY gi"en me a great opportunity to do this project work and M%. PRIYA CHANDRAPRAKASH& S').*% M3)3('% HR& SI-1 C2I& T/C2+0-03I/S4 C2/++,I

for gi"ing me an opportunity to work along with the 2! ,+ R/S0!RC/ )epartment in Chennai . I take this opportunity to thank those who helped me to make this project4 a better work through their constructi"e criticism4 helpful suggestions and o"erall support. I sincerely thank my &roject 3uide M%.S'),-./ K123%& S').*% P%*7'==*% School of anagement4 and SR !+I5/RSIT. for his continuous encouragement 6 1ey oti"ation for

my project works. and I would like to thank also M%. SAFI& A==.=,3), M3)3('% 9MARKETING DEPARTMENT:& SILK CHIP TECHNOLOGIES for e7tending their Co$ operation4 support and /7perience right from conceptuali8ations to the completion of the project. -ast but not the least4 I must acknowledge the encouragement and help gi"en by my belo"ed parents4 friends4 teachers4 family members4 whose best wishes and emotional support ha"e enabled me to completed this project RAGHUVARAN.J.D .#.,. II ./,R School of
SR

anagement
!ni"ersity

TABLE OF CONTENTS

CHAPTER NO PARTICULARS ABSTRACT I INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE OBJECTIVE FOR THE STUDY II RESEARCH METHODOLOGY LIMITATION OF THE STUDY III IV V DATA ANALYSIS AND INTERPRETATION FINDINGS AND SUGGESTIONS CONCLUSION APPENDIX BIBILIOGRAPHY PAGE NO 1 " ! 13 "4 "5 30 31 !3 !5 !! !@

LIST OF TABLES
S.N O 1 " 3 4 5 ! A 8 @ 10 11 1" 13 14 15

TITLE
REASON FOR LUXURY PRODUCTS PREFERABLE >HAT CONSTITUTES A LUXURY PRODUCTS LOOK FOR LUXURY PRODUCTS EVALUATION BEFORE LAUNCHING PREFERING LUXURY PRODUCTS PERCENTAGE OF PERFERENCE ASSOCIATED >ITH BRAND NAME DEMAND FOR SELECTED PRODUCTS PURPOSE OF PURCHASING LUXURY PRODUCTS STEADY IN DEVELOPING COUNTRIES AVAILABILITY OF PRODUCTS DURING RECESSION PERIOD NEED BASED HUGE IN DEMAND GRO>TH IN LUXURY PRODUCTS

PAGE NO
31 33 35 3A 3@ 41 43 45 4A 4@ 51 53 55 5A 5@

LIST OF CHARTS
S.N O 1 " 3 4 5 ! A 8 @ 10 11 1" 13 14 15

TITLE
REASON FOR LUXURY PRODUCTS PREFERABLE >HAT CONSTITUTES A LUXURY PRODUCTS LOOK FOR LUXURY PRODUCTS EVALUATION BEFORE LAUNCHING PREFERING LUXURY PRODUCTS PERCENTAGE OF PERFERENCE ASSOCIATED >ITH BRAND NAME DEMAND FOR SELECTED PRODUCTS PURPOSE OF PURCHASING LUXURY PRODUCTS STEADY IN DEVELOPING COUNTRIES AVAILABILITY OF PRODUCTS DURING RECESSION PERIOD NEED BASED HUGE IN DEMAND GRO>TH IN LUXURY PRODUCTS

PAGE NO
3" 34 3! 38 40 4" 44 4! 48 50 5" 54 5! 58 !0

ABSTRACT

In marketing folklore4 lu7ury brands were said to be immune to economic downturns. Their audience of 9ber$wealthy loyalists meant they remained protected during tough economic times. %urthermore4 as the global economy prospered4 lu7ury brands attracted new segments of customers who were suddenly able to afford a wealthier lifestyle. It should be no surprise then4 that we saw so many lu7ury brands :Tiffany 6 Co. as an e7ample : rush to make themsel"es more accessible to a broader audience o"er the last ten years. ,nd it is lu7ury;s reliance on this e7tended market that now creates risk and makes them "ulnerable to the downturn. ,s we mo"e forward into an uncertain global future4 it is clear that no brand is insulated from this the current financial crisis. The turmoil of managing a lu7ury brand in such times is e"ident. #ulgari;s agoni8ed response to cut costs in areas where it hopes customers won;t notice : lea"ing the backside of watchbands unpolished and introducing lower$cost bo7es and bottles for its perfume line : pro"es that cutting back appears una"oidable e"en for a leading lu7ury brand. #ut at what long$term cost< =hile only twenty years ago4 such measures may ha"e slipped by unnoticed4 the information age makes such mo"es too newsworthy4 introducing new risks to lu7ury brands; long$term "alue.
Despite the difficulties of these times, the Leading Luxury Brands of 2008 must continue to stand strong. They need to remember what has made them endure o er the years and they must continue to demonstrate the same degrees of determination, con iction, and creati ity. The brands that do are li!ely to weather the storm better than most " and luxury brands e erywhere would be wise to carefully consider the long#term implications of short#term compromise.

INTRODUCTION

Principles of Luxury Brand Manage en! Luxury brands are ery distinct. $nd yet, e en though %rance, &taly, 'ermany and the () and the (*$ ha e created famous luxury brands, there is still some confusion o er the concepts of luxury and the luxury brand, not to mention the %rench concept griffe which cannot ade+uately be translated into ,nglish. -aturally e eryone is able to sense the differences and to +uote a typical example for each of those concepts. .owe er when pressed for an exact definition, most people hesitate to gi e a straightforward answer. /hat is Luxury0 The problem with the word 1luxury2 is that it is at once a concept, a sub3ecti e impression and polemical term, often sub3ected to moral criticism. Thus, what is luxury for some is 3ust ordinary for others, while some brands are +ualified as 1luxury brands2 by one half of the public opinion4 others are simply considered as 1ma3or brands2 by the other half. Li!ewise, gi en the economic crisis, it has become ethically more dubious 1to li!e luxury2 or 1to pursue luxury2. 5eal luxury brands remain attracti e, but the word itself has lost its clout and spar!le because of the economic downturn in industriali6ed countries. The word 1luxury2 has falled out of fa or a little, a hindrance to mar!et researchers, who wish to measure their customers2 sensiti ity to luxury. &n economic terms, luxury ob3ects are those whose price 7 +uality relationship is the highest on the mar!et. By 1+uality2, economists mean 1what they !now how to measure2, i.e. tangible functions. Thus, researchers report defines luxury brands as those which 1ha e constantly been able to 3ustify a high price, i.e. significantly higher than the price of products with comparable tangible functions2. This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold. /hat counts, indeed, is not the absolute price, but the price differential between 1luxury2 products and products with comparable functions. This price differential can ary from ten dollars for a cologne brand to hundreds of thousands of dollars. /hat does the luxury concept actually encompass0 /hat are the essential attributes of this category of so#called 1luxury2 items0 Luxury comes from 1lux2 which means light in Latin. This explains the typical characteristics of so called luxury items. Luxury glitters. The fact that luxury is isible is also essential4 luxury must be seen, by the consumer and by others. That is why

luxury brands externali6e all

of their signs, the brand signature must be seen and recogni6ed on the person wearing the brand, and it must be recogni6able worldwide. 8ade to perfection, luxury items stand out and embody certain ideals. Luxury defines beauty it is an art applied to functional items. Luxury constantly see!s to escape time constraints, by focusing on leisure, or by concealing the effects of time with wigs and face ma!eup. $s for perfume, it also helped to distinguish aristocrats from the common fol!. $s we can see, it is significant that modern luxury brands ha e falled for the cosmetics and perfume industry, not to mention the other essential class attributes, clothing and 3ewels.
,tymology is not the only means of deciphering the mystery of the concept of luxury. *ociology and history can also help. Luxury is the natural accompaniment of the ruling classes. &t is indeed widely ac!nowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences. &n this respect, luxury brands are 3ust perpetuating and exemplifying the signs and attitudes of the former aristocracy.

-ot many luxury symbols exist, but those that do represent the past pri ileges of the ,uropean aristocracy li ing a life of leisure, free of all wor!ing, money, time or space obligations. , erything is made to conceal mere practical utility, the leather, the polished wood, the hushed engine are multiple details which ma!e them more li!e a drawing room than a car. &n this respect, %errari and 9orsche are regarded as prestigious sport brands rather than typical examples of luxury. :reated by a talented engineer, they certainly con ey the mythical +uest for speed, but they nonetheless embody abo e all the basic automobile function, mobility. Principles of Luxury Manage en!

5esearchers ha e pointed out some of the basic principles of luxury brand management, for instance, the necessity of protecting clients from non#clients, by creating a distance, a no#mix area, or, as economists would put it, entrance barriers for those who are not in ited. This is implemented through prices and selecti e and exclusi e distribution, as well as the aesthetic dimension of the products. But for the distincti e sign to wor!, it must be !nown by all. Thus paradoxically, luxury brands must be desired by all but consumed only by the happy few.

Loss of control occurs precisely when luxury brands no longer protect their clients from the non# clients. &n our open democratic societies, groups are constantly trying to recreate separations of all !inds. The latter do e entually disappear when, for instance, prestigious brands get distributed in hypermar!ets.

&-D(*T5; 95<%&L,

In!roduc!ion

Conflicting stories are emanating about the slow$mo"ing market;s impact on the fashion4 particularly the high fashion4 industry. The reasons for this are not difficult to guess. =hile4 on the one hand4 the target customer for the lu7ury sector is cushioned from the blow that its less$ endowed counterpart is reeling under4 there is limited scope for the broadening of this sector4 when the o"erall buyer sentiment is so somber. That;s the double bind that lu7ury goods retailers are caught in at the moment. 5i"ette );Cru84 manager with /rnst and .oung;s business ad"isory practice4 who has done considerable work formulating entry4 growth and rationali8ation strategy for a clutch of retail and consumer products clients in India4 the !1 and the e7plains the comple7 dynamics of this industry to %/;s Radhika Sachde". iddle /ast4

>-3,B= ,-' .2<34, *7 ,-' =/*C8*C) *) ,-' I)8.3) 3<<3%'/ 23%0',D The notion that lu7ury brands are immune to economic downturns no longer holds true. Rich Indians are deferring purchase of high$"alue lu7ury goods. =hat makes it challenging for these brands is the fact that the niche consumer base is rather limited in India. #esides the supply side is also affected. Scores of lu7ury brands in India ha"e either shel"ed or stalled their e7pansion plans4 while waiting for a reco"ery.

I) 5*1% *<.).*)& -*C 21=, 3 /1;1%5 63)8 6' %',3./'8D >-3, 3%' ,-' %1/'= *7 E.=13/ 2'%4-3)8.=.)(& =.,' ='/'4,.*)& =,*%' =.F' ',4 ,-3, 21=, 6' 7*//*C'8 C.,- /1;1%5 6%3)8=D C3) 5*1 4.,' 3 7'C 6%3)8= ,-3, =4*%' -.(- *) ,-'=' <3%32','%=D There are many definitions of Indian lu7ury. ,n acclaimed high$end or super$premium brand may be considered a lu7ury brand. #ut4 real lu7ury brands are those that determine their own supply and price. 5isual merchandising in the lu7ury space is determined by customer;s perception4 emotions and aspirations for the brand. 3lobally4 most lu7ury players maintain a standard look and feel to deli"er indistinguishable customer e7perience. %or e7ample4 a globally known lu7ury brand4 imported furniture and fit$outs worth more than Rs '> crore for furnishing has its flagship store in India. Typically4 the flagship stores of super lu7ury brands are situated in prime destinations or ?grade ,; properties in metros and super tier$I cities. The site is selected keeping in mind the brand identity4 customer e7perience and desired footfalls. ajor apparel lu7ury brands offer products across "arious categories and prefer showcasing this lifestyle range through large flagship stores with store si8e ranging... between @4AAA and 'A4AAA sB ft. In the final analysis4 lu7ury is about deli"ering the e7perience and aspirational "alue that connects with the customer;s psyche and results in purchase. >-3, C*%0= 6'=, 7*% /1;1%5 6%3)8=G-.(- =,%'',= *% 21/,. 6%3)8 7*%23,=D Choice of retail format depends primarily upon the brand positioning. , super premiumChigh$end brand may choose to house its offerings in mutli$brand outlets and shop$in shop formats. This helps the brand to e7pand reach to the target market. This target market Dmiddle$to high income peopleE is spread across the country4 thus relying on third$party retail and distribution may be the only option to reach feasible scale. 0n the other hand4 lu7ury brands prefer to ha"e niche set$ups in the form of flagship stores at major high$streets4 specialty malls and other locations such as hotels and airports that deli"er the desired profile of footfalls and deli"er the desired le"el of shopping e7perience. It also allows the brand to showcase its entire collectionF thereby gi"ing opportunities for up sell and cross sell.

Some lu7ury brands offer limited categories. %or e7ample4 time wear that may not ha"e the desired scale or range of products to setup an e7clusi"e store. In such cases4 brands are retailed through specialty lu7ury boutiBues or high$end mutli$brand formats.

COMPAN" PRO#IL$ SIL% C&IP T$C&NOLO'I$S

M.==.*) To dri"e ?The -u7ury #usiness; on an International le"el pro"iding a premium platform of business de"elopment opportunities to members and clients globally4 thereby generating profitable returns for the in"estors concerned.

C*22.,2'), ?-eading #rands of the =orld team is committed to dri"ing our clients business to higher ground. 0ur brand focus4 loyalty and international standards of professional approach should be e7pected of us;. P%*7./' -eading #rands of the =orld is the only /1;1%5 6%3)8 4*)=1/,3)45 entity in the fast growing Indian -u7ury market. 0ur company philosophy is rooted in successfully dri"ing the ?-u7ury #usiness; on an International le"el4 by pro"iding a premium platform of business de"elopment opportunities to our clients and partners globally. The primary aim of -eading #rands of the =orld is to assist international ?best of breed; brands in their e7pansion programme in domestic as well as o"erseas markets. =hether in the realm of beauty and fashion4 fine jewellery4 yachts4 jets4 automobiles4 lu7ury hospitality4 fine wines4 spirits or premium sponsorship programmes4 -eading #rands of the

=orld offers sound strategic counsel with the ability to e7ecute multifaceted programmes that reach the desired target audience. -eading #rands of the =orld understands the needs of the lu7ury market in India and the know$ how to pro"ide meaningful4 result oriented marketing strategies that focus on the brandGs real needs. 0ur e7pertise span from orchestrating a comprehensi"e entry strategy including in$depth market sur"ey4 research 6 analysis4 creating brand launch platforms and introductions to the right target sets. %urther identifying the befitting image partner for strategic alliances4 generating awareness 6 "isibility by suitable brand positioning. =e act as a guide in foreign markets and assist brands in identifying appropriate retail space4 de"eloping and implementing bespoke e"ent programmes and creating a platform to meet with other ?best of breed; brands. -eading #rands of the =orld promotes best practices shared across lu7ury segments and de"eloping collaborations for brands to network4 facilitate and transfer business de"elopment opportunities. =ith a personali8ed approach -eading #rands of the =orld de"elops strategic plans for new brand market entries4 else in the case of an established brand4 we build upon the new market entry plan within the brand;s international corporate guidelines resulting in detailing and satisfaction as per international standardi8ations and e7pectations. =ith focus on the brands identity 6 personality and understanding the "arying forms of culture and mo"ing target sets in which the brand is e7pected to perform4 our team is e7perienced and Bualified on deli"ering the e7pected. The business model and strategic operations of -eading #rands of the =orld is headed by our Chairman4 who is speciali8ed in the international lu7ury industry for o"er a decade4 there by reflecting international standardi8ed methods of approach to all our business functions. 0ur offices are managed by e7perienced business de"elopers4 directors and a high profile4 internationally e7posed and e7perienced team4 which is further strengthened by networks and connections across international markets and circles of influence.

=ith consistency4 focus4 uniBue attention to detail and unmatched responsi"eness $ -eading #rands of the =orld guarantees to remain committed to its goal : ?To pro"ide inno"ati"e and pioneering solutions for lu7ury products and ser"ices conducting business in India.; ,t -eading #rands of the =orld inno"ation forms the )+, of our business and is reflected in our approach to the brands and clients with whom we work.

-eading #rands of the =orld remain IndiaGs first -u7ury #rand Consultancy in the Indian market that pro"ides a platform for international lu7ury brands entering the Indian market4 established international 6 domestic lu7ury brands4 and Indian lu7ury brands entering international markets. 0ur e7perience and understanding of lu7ury brands combined with a deep knowledge of our operating markets allows us to pro"ide a uniBue portfolio of e7tensi"e ser"ices for an e7clusi"e group of clients.

OB($CTI)$S O# T&$ STUD"

PRIMAR" OB($CTI)$

To study about the creation of a Brand in the Luxury segment and the 8ar!eting strategies implemented across the globe.

S$CONDAR" OB($CTI)$

To !now the existing luxury brands and customer preferences

To !now the psychological impact of luxury branding.

To study the impact of premium pricing and strategic measures implemented by Brand Leaders across the globe for product promotion.

N$$D O# T&$ STUD"

&t has been obser ed the growth of Luxury mar!et is growing by leaps and bounds.

The world has become a ery small place in terms of geographies and global distance is getting shorter and shorter e ery day. 8odes of communication ha e increased considerably and hence people ha e exposure to arying products a ailable at a premium cadre across the globe. .ence it becomes imperati e to design and mar!et Luxury products that ha e a uni ersal appeal and can ta!e on the needs and aspirations of people across the globe.

This pro3ect report deals in depth about the creation of premium 7 luxury brands $long with some time tested case studies of existing premium brands.

R$S$ARC& M$T&ODOLO'"

5esearch is an intensi e study in a particular field to achie e at a better conclusion of a

problem. 5esearch 8ethodology is a systematic way of sol ing the problem. The methodologies followed for this study are as follows.

I.'

R$S$ARC& D$SI'N

The research design is the basic framewor! or a plan for a study that guides the collection of data and analysis of data. &n this mar!et sur ey the design used is used Descripti e 5esearch Design. &t

includes sur eys and fact#finding en+uiries of different !inds. The ma3or purpose of descripti e research is description of state of affairs, as it exists at present. The information are collected from the indi iduals and analy6ed with the help of different statistical tools, for describing the relationship between arious ariables, pertaining to customer relationship in <ri6en.

I.@

DATA COLL$CTION M$T&OD

The data collected can be categori6ed into two types.

aE 9rimary data bE *econdary data

T*e Pri ary da!a are those which are collected afresh for the first time, and thus happens to be original in character. $mong the arious methods, which can be used to collect the primary data, the

researcher has adopted two methods which are 9ersonal &nter iew method and *tructural =uestionnaire method. The researcher has prepared structured +uestionnaires, which contained predominantly multiple choice +uestions. The respondent2s opinions are gathered with regard to the problem with the help of the +uestionnaires.

The tools used for collecting the 9rimary data are>

'. Structured Juestionnaire &ersonal Inter"iew

T*e Secondary da!a are those which ha e already been collected by someone else and which ha e already passed through the statistical process. The secondary data is collected with the help of :ompany /ebsite, &nternet etc. Both primary and secondary data collection ha e been ta!en for this research study.

I.I

SAMPLIN'

$ sample is a smaller representation of a larger whole. /hen some of the elements are selected with the intention of finding out something about the population from which they are ta!en, that group of elements is referred as a sample, and the process of selection is called *ampling.

+,+,- Sa pling Uni!

The respondents of the study are part of population of customers of *il! :hip Technologies. ,ach customer is considered to be the sampling unit

I.I.@

Sa ple Si.e

The si6e of the sample is ?00.

3.3.3 S32</.)( M',-*8 Stratified Simple Random Sampling ethod is used in this study. The total population is

di"ided into I strata namely IT4 +on$IT and IT/S.

I.K

STATISTICAL TOOLS US$D #OR T&$ STUD"

The collected data were analy6ed with the help of *imple 9ercentage analysis, /eighted $ erage 8ethod and :hi# *+uare Test.

+,/,- Percen!age Analysis

9ercentage refers to a special !ind of ratio in ma!ing comparison between two or more data and to describe relationships. 9ercentage can also be used to compare the relation terms the distribution of two or more sources of data.

-umber of 5espondents 9ercentage of 5espondents @ ################################# A ?00 Total 5espondents

$ alue indicating the percentage of sample alues that is outside certain limits, assuming the null hypothesis is correct, that is, the probability of re3ecting the null hypothesis when it is true.

LIMITATIONS O# T&$ STUD"0

'E $ny 9ro3ect being e aluated with the help of human

olunteers has to ta!e into

consideration. The human error in ol ed in the statistical methods. The answers gi en for +uestions posse will produce politically correct answers rather than straight forward and truthful replies.

@E These errors ha e been accepted as part and parcel of the methods of e aluation.
BC &t has been found that employees who were re iewed7 inter iewed were more !een in gi ing $nswers that would help them to get a higher appraisal rating rather being honest, blunt and truthful.

ANAL"SIS AND INT$RPR$TATION

K.'

P$RC$NTA'$ ANAL"SIS

T$BL, D.? R$ASON #OR LU1UR" PRODUCTS PR$#$RABL$

S,No, -, 2, +, / ,

Opinion Brand consciousness *tatus in the society can afford to buy

No, of Responden! E? ?2 ?F

Percen!age E? ?2 ?F

Inference

9restige issue To!al

20 -33

20 -33

&t is inferred from the abo e table that E?G of the respondents says due to brand consciousness, ?2G of the respondents says for the status in the society, ?FG of the respondents says can afford to buy and 20G of the respondents says due to prestige issue.

%&'(5, -<.D.?

R$ASON #OR LU1UR" PRODUCTS PR$#$RABL$

60 50 40 30 20 10 0 1st Qtr 2nd 3rd Qtr4th Qtr Q tr

Prest ige issue Brand consciousness Statu s in the socie ty
can a fford to buy

T$BL, D.2

4&AT CO NSTITUT$S A LU1UR" PRODUCTS

S,No, -,

Opinion :ompany brand name &mage associated with the product 9ri6e (tility alue To!al

No, of Responden! 2H

Percen!a ge 2H

2, +, /,

?F 22 BE -33

?F 22 BE -33

Inference

&t is inferred from the abo e table that 2HG of the respondents says company brand name, ?FG of the respondents says image associated with the product, 22G of the respondents says price and BEG of the respondents says utility alue.

%&'(5, -<.D.2

4&AT CO NSTITUT$S A LU1UR" PRODUCTS

35 30 25 20 15 10 5 0 1st Qtr 2 nd 3rd Qtr4th Qtr Q tr

Company brand name

mage associated !ith t he product

Pri"e

#ti$ity %a$ue

T$BL, D.B

TABL$ S&O4IN' %$" PARAM$T$RS IN A LU1UR" PRODUCT

S,No , -, 2, Inferenc e +, /,

Opinion %eatures Benefits

No, of Responden! E? BH

Percen!ag e E? BH

$d antages :ompany brand name To!al

I D -33

I D -33 is from the table

&t inferred abo e

that E?G of the respondents says due to features in the product, BHG of the respondents says based on benefits, 2?G of the respondents says based on ad antages and DG of the respondents says based on company brand name.

%&'(5, -<.D.B

LOO% #O R LU1UR" PRODUCTS

60 50
&eatures

40
B enefits

30
' d%antages

20
C ompany brand

10
0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

name

T$BL, D.D

S,No, -, 2, +,

Opinion :ustomer segment 9roduct segment 9ositioning

No, of Responden! 2I B2 ?D

Percen!age 2I B2 ?D

$)ALUATION B$#OR$ LAUNC&IN' /, Demography To!al

2E -33

2E -33

Inference

&t is inferred from the abo e table that 2IG of the respondents says based on customer segment, B2G of the respondents says through product segment, ?DG of

the respondents says through positioning and 2EG of the respondents says based on demography.

%&'(5, -<.D.D

$)ALUATION B$#OR$ LAUNC&IN'

35 30
Customer

25

segm ent Product segm ent Posit ioning (emograp hy

20 15

10 5 0 1st Qtr 2nd 3rd Qtr4th Qtr Q tr

T$BL, D.E

S,No, -,

Opinion *ometimes

No, of Responden! BI

Percen!age BI

PR$#$RIN' LU1UR" PRODUCTS 2, <ccasionally +, /, -e er $lways To!al

?F H B8 -33

?F H B8 -33

Inference

&t is inferred from the abo e table that BIG of the respondents says

sometimes, ?FG of the respondents says occasionally, HG of the respondents says ne er and B8G of the respondents says always.

%&'(5, -<.D.E

PR$#$RIN ' LU1UR" PRODUCTS

40 35 30 25
Sometime s )ccas iona$$y *e%er '$!ay s

20

15 10 5 0 1st Qtr 2 nd 3rd Qtr4th Qtr Q tr

T$BL, S,No, Opinion No, of Responden! Percen!age

D.H

P$RC$NTA'$ O# P$R#$R$NC$ , Below ?G 2 , + , / ,

?D

?D

?#?.EG

2H

2H

?.E#BG

2?

2?

$bo e EG

BI

BI

Inferenc e

To!al

-33

-33

&t is inferred from the abo e table that ?DG of the respondents says below ?G,

2HG of the respondents says ?#?.EG, 2?G of the respondents says ?.E#BG and BIG of the respondents says abo e EG.

%&'(5, -<.D.H

P$RC$NTA'$ O# P$R#$R$NC$

40 35 30
Be$ o! 1+ 1,1-5+ 1-5,3+

25 20

15 10 5 A 1st Qtr 2n d Qtr 3rd Q tr 4th Qtr

'bo %e 5+

T$BL, D.F

S,No, -, 2,

Opinion "es No

No, of Responden! FI 2?

Percen!age FI 2?

ASSOCIAT$D 4IT& BRAND NAM$ Inferenc -3 e To!al 3

-3 3

&t is inferred from the abo e table that FIG of the respondents says yes that luxury products associated with brand name, 2?G of the respondents says no.

%&'(5, -<.D.F

ASSOCIAT$D 4IT& BRAND NAM$

.0 /0 60 50
0 e s

4 0 3 0 2 0 1 0 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

* o

T$BL, D.8

D$MAND #OR S$L$CT$D PRODUCTS

S,No, -, 2,

Opinion "es No To!al

No, of Responden! 8? ?I -33

Percen!age 8? ?I -33

Inference

&t is inferred from the abo e table that 8?G of the respondents yes that there is demand for selected products, ?IG of the respondents says no.

%&'(5, -<.D.8

D$MAND #OR S$L$CT$D PRODUCTS

10 .0 /0 60 50
0 e s

40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

* o

T$BL, D.I

PURPOS$ O# PURC&ASIN'

S,No, -, 2, +, /,

Opinion 9ricing 9roduct composition &mage J *tatus 5ecognition To!al

No, of Responden! 2E ?F D? 22 -33

Percen!age 2E ?F D? 22 -33

Inference

&t is inferred from the abo e table that 2EG of the respondents says because of pricing, ?FG of the respondents says due to product composition, D?G of the respondents says image and status and 22G of the respondents says for recognition.

%&'(5, -<.D.I

PURPOS$ O# PURC&ASIN'

45 40 35 30 25 20 15 10 5 0 4 t h Q tr

Pricing Product composition

mage 2 Status

3ecognition

1st Qtr

2n d Qt r

3rd Qtr

S,No, -,

Opinion *ometimes

No, of Responden! B?

Percen!age B?

T$BL, D.?0

LU1UR" PRODUCTS STUD" IN D$)$LOPIN' COUNTRI$S 2, 5arely ?? +, /, -e er $lways To!al 2 EH -33

?? 2 EH -33

Inference

&t is inferred from the abo e table that B?G of the respondents says sometimes there is steady in de eloping countries, ??G of the respondents says rarely there will be steady in luxury products, 2G of the respondents says ne er and EHG of the respondents says always.

%&'(5, -<.D.?0

LU1UR" PRODUCTS S TUD" IN D$)$LOPIN' COUNTRI$S

60 50 40
Sometimes 3are $y

30

20

*e%e r

'$!a ys

10 0 1st Qtr 2nd 3rd Qtr4 th Qtr Qtr

T$BL, S,No, -, 2, +, /, Opinion :ar Kewellery 'arments :osmetics No, of Responden! E? B0 ?E D Percen!age E? B0 ?E D

D . ? ?

A)AILABILIT" PR$#$R$NC$ TO4ARDS LU1UR" PRODUCTS IN T&$ MAR%$T -3 -3 To!al 3 3

Inference

&t is inferred from the abo e table that E?G of the respondent2s opted car, B0G of the respondents opted for Kewellery, ?EG of the respondents opted for garments and DG of the respondents says cosmetics.

%&'(5, -<.D.??

A)AILABILIT" PR$#$R$NC$ TO4A RDS LU1UR" PRODUCTS IN T&$ MAR%$T

60 50 4 0
Car

3 0

4e!e$$e ry 5arme nts

2 0 10

Cosmeti cs

A
1st Qtr 2nd Q tr 3rd Qtr 4th Qtr

T$BL, D.?2

D$MAND PR$#$R$NC$ O# LU1UR" PRODUCTS DURIN' R$C$SSION P$RIOD

S,No, -, 2, +, /,

Opinion *ometimes 5arely -e er $lways To!al

No, of Responden! 2B BI 2F ?? -33

Percen!age 2B BI 2F ?? -33

Inference

&t is inferred from the abo e table that 2BG of the respondents says sometimes there will be demand, BIG of the respondents says rarely there will be demand, 2FG of the respondents says ne er and ??G of the respondents says always there will be a demand.

%&'(5, -<.D.?2

D$MAND PR$#$R$NC$ O# LU1UR" PRODUCTS DURIN' R$C$SSION P$RIOD

40 35 30 2 5 2 0 1 5 1 0 5 0 1st Qtr 2nd 3rd Qtr4th Qtr Q tr

Some times

3are$y *e%e r '$!a ys

T$BL, D.? B

PR$#$RNC$ #OR LU1UR" PRODCTS IN LIN$ 4IT& BASIC N$$DS O# T&$ CUSTOM$R0

S,No, -, 2, +, /,

Opinion *ometimes 5arely -e er $lways To!al

No, of Responden! ?8 2? H EE -33

Percen!age ?8 2? H EE -33

Inference

&t is inferred from the abo e table that ?8G of the respondents says sometimes, 2?G of the respondents says rarely, HG of the respondents says ne er and EEG of the respondents says always.

%&'(5, -<.D.?B

PR$#$RN C$ #OR LU1U R" PRODCTS IN LIN$ 4IT& BASIC N$$DS O# T&$ CUSTOM$R0

60 50 40
Sometim es 3are$y *e%er

30

20 10 0

'$!ays

1st Qtr 2 nd Qtr 3r d Qtr

4th Qtr

T$BL, D.?D

D$M$ND PR$#$R$NC$ O# LU1UR" PRODCTS CONTIN$NT 4IS$

Inferenc e S,No, -, 2, &t +, inferred abo e that 2DG /, <ther part of world 2 2 ,urope H H fro m Opinion $merica $sia No, of Responden! 2D H8 Percen!age 2D H8 i s t h e

table t h e

of

To!al

-33

-33

respondents says $merica, H8G of the respondents says $sia, HG of the respondents says ,urope and 2G of the respondents says other part of world.

%&'(5, -<.D.?D

D$M$ND PR$#$R$NC$ O# LU1UR" PRODCTS CO NTIN$NT 4IS$

-33 63 53 /3 23 3 -s! 7!r 2nd 7!r +rd 7!r /!* 7!r $ as! 4es ! Nor!*

/0 60 5 0 4 0 3 0 2 0 1 0 0 1st Qtr 2n d Qt r 3rd Qtr

'meri ca

'sia

6uro pe )ther part of !or$d

4 t h Q t r

S,No, T$BL, -,

Opinion :ar

No, of Responden! EI

Percen!age D.?E EI

'RO4T& LU1UR" PRODUCTS 2, +, /,

IN

Kewellery 'arments :osmetics To!al

22 ?H B -33

22 ?H B -33

Inference

&t is inferred from the abo e table that EIG of the respondents opted for car, 22G of the respondents opted for Kewellery, ?HG of the respondents opted for garments and BG of the respondents opted for cosmetics.

%&'(5, -<.D.?E

'RO4T& IN LU1UR" PRODUCTS

60 50 40
Car

3 0

4e!e$$er y 5arm ents

2 0 1 0 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Cosmeti cs

TABLE NO. 4.".1

HUGE AVAILABILITY AND PREFERENCE OF THE CUSTOMERS TO>ARDS LUXURY PRODUCTS 9T>O >AY TABLE:

S,No

A)AILABILIT "

PR$#$R$NC$ O# T&$ PRODUCTS Keweller y 'arme nt

:ar

:osmetics

To!al

? 2 B

$L/$;* -,L,5 *<8,T&8,* To!al

BB 0 8 BF

BE E D D8

?2 0 B ?2

0 0 0 B

80 E ?E ?00

-ull .ypothesis M.0C

# There is no significant relationship between a ailability and preference of the customers towards luxury products.

$lternati e .ypothesis M.?C

# There is close relationship between a ailability and preference of the customers towards luxury products.

C&I8S7UAR$ 9 : CALCULATION0

:alculated

alue

@ @ @ @

2B.I8E 8 I.D88 *ignificant at EG le el

Degree of freedom Table alue *ignificant result

IN#$R$NC$

%rom the abo e analysis, we find that the calculated alue of 2 is greater than the table Lalue and hence, the null hypothesis re3ected. *o, there is a close significant relationship between a ailability and preference of the customers towards luxury products.

#INDIN'S

E?G of the respondents say due to brand consciousness there is a demand for luxury products.

H H

BEG of the respondents say depends on the utility alue there is a demand for the products. E?G of the respondents say due to features in the product.

B2G of the respondents say through product segment.

BIG of the respondents say sometimes there will be a demand for the product.

H H

BIG of the respondents say abo e EG there will be a demand. FIG of the respondents say yes that luxury products associated with brand name.

8?G of the respondents yes that there is demand for selected products.

D?G of the respondents say image and status ma!e demand for the products.

B?G of the respondents say sometimes there is steady in de eloping countries.

E?G of the respondents opted car as a luxury products.

BIG of the respondents say rarely there will be demand for the luxury products.

H8G of the respondents say there is a huge demand in $sia.

SU''$STION

5espect> Luxury brand need to respect all interaction between the brand and the customer., *egment> Luxury brands need to identify, differentiate and priorities the most profitable subsets for targeted strategies., &nsight> 8oti ation could be based on personal and non#personal factors, :onnect> %riends and family are an important influence on luxury consumption., ,xperience> Deep and meaningful relationships need to be de eloped in order to win the soul of the luxury consumer. The starting point for identifying successful luxury brand strategies in &ndia has been established by identifying certain salient aspects of luxury brands that remain constant as well as identifying the stage of mindset of the &ndian consumer towards these brands. The focus is now towards 1how many2 more luxury brands will enter the mar!et to gain a first mo er ad antage, which is of significant important in &ndia. $ word of caution that goes for luxury mar!eters, irrespecti e of

their brands and geographical

presence. The luxury consumer is always loo!ing for newer ways to satisfy his continuously changing needs.

CONCLUSION

Luxury brands are the e+ui alent of aristocracy. $s we ha e seen, they achie e their status by being practically untouchable. They ta!e time to create. Louis Luitton, Burberry, Bulgari, and :artier did not 3ust appear out of thin air. They began more than ?E0 years ago and too! years to build, only achie ing iconic status o er time.

:onsidering the time and cost of capital that this would re+uire today, modern in estors wouldn2t dare indulge in the creation of a new luxury brand. Luxury brands are expensi e. They see! limited, elusi e customers who are difficult to communicate with and e en more difficult to find. $nd their creation re+uires the mindset of a higher purpose, erging on the genius " one that transcends the commercial realities of the +uarterly earnings call. &t is difficult to imagine that the in estor psyche of 2008, especially considering the current en ironment, would tolerate the start#up costs of a luxury brand.

APP$NDI1

?. :an & !now the reason why luxury product are preferable aC Brand consciousness bC *tatus in the society cC can afford to buy

dE 9restige issue

@. $ccording to you what constitutes a luxury product

aE :ompany brand name bC &mage associated with the product cC

9ri6e

dE (tility alue

I. /hat do you loo! for in luxury products

aE %eatures bC Benefits cC $d antages dC :ompany brand name

K. /hat do you e aluate before launching the luxury product

aE :ustomer segment bC 9roduct segment cC 9ositioning dC

Demography

>. Do you always prefer a luxury product compare to a good product

aE *ometimes bC <ccasionally cC -e er dC $lways

L. $ccording to you what percentage of today2s consumer product

constitutes luxury 9roduct

aE Below ?G bC ?#?.EG cC ?.E#BG dC $bo e EG

aE ;es bC -o

M. Luxury 9roducts segment will demand only in selected mar!et

aE ;es bC -o

N. Luxury product are purchased for

aE 9ricing bC 9roduct composition cC &mage J *tatus dC

5eorgani6ation

'A. Luxury product are steady in de eloping countries

aE *ometimes bC 5arely cC -e er dC $lways

''. Luxury products are a ailable hugely in which segment

aE :ar bC Kewellery cC 'arments dC :osmetics '@. The demand for luxury product goes down during recession

aE *ometimes bC 5arely cC -e er dC $lways

'I. Luxury product is need based

aE *ometimes bC 5arely cC -e er dC $lways

'K. Luxury product are huge in demand

aE $merica bC ,urope cC $sia dC <ther part of world

'>. The growth of luxury is increased more in

aE :ar bC Kewellery cC 'arments dC :osmetics

BIBLIO'RAP&"

$rnold, ..K.,%eldman.M?I8HC. <rgani6ational Beha ior . -ew ;or! " 8cgraw .ill.

Behilling, <. ?II8. N,mployee *election> /ill &ntelligence and :onscientiousness Do the Kob0O $cademy of 8anagement ,xecuti e ?2> FF#8H

:amilleri, ,. M2002C *ome antecedents of organi6ational commitment> 5esults from an information systems public sector organi6ation.

:reating 9owerful Brands Leslie de chernatony and malconlm 8c Donald.

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