A

PROJECT REPORT

ON

“EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR

IN FASHION INDUSTRY, ONLINE SHOPING, ADVERTISEMENT”

SUBMITTED IN PARTIAL FULFILMENT OF REQUIREMENTS FOR

DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

Submitted by
Miss. LAXMI VILASRAO SARDAR

MBA (HR& Marketing)

Under the guidance of

Dr. AJAY PETHE

Department of Business
Administration

Datta Meghe Institute of Engineering, Technology &

Research, Sawangi (M), Wardha

2020-2021

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 DATTA MEGHE INSTITUTE OF ENGINEERING, TECHNOLOGY & RESEARCH

Sawangi (Meghe), Wardha.

Off: 07152-287893, 287894, Principal Office : 07152-287891. Fax 07152-287892

E-mail : Principal _dmietr@yahoo.Com, Web site : www.dmietr.edu.in

Department of Business Management

CERTIFICATE
This is to certify that miss. LAXMI VILASRAO SARDAR of our institute has
successfully prepared this synopsis as per standard guidelines. The title of the synopsis is
“EFFECT OF BRANDING ON CONSUMER BUYING BEHAVIOUR IN FASHION
INDUSTRY, ONLINE SHOPING, ADVERTISEMENT” under the specialization of Marketing
and Finance.

Dr. Shailesh O. Kediya Dr. Prasanna Zade

(HOD-MBA) Principal

DMIETR, Wardha DMIETR, Wardha

Dr. Ajay Pethe

(Project Guide)

Date: __ / __ / ______

Place:

2
 DECLARATION

I certify that

a. The work contained in this project has been done by me under the guidance of our
supervisor(s).
b. The work has not been submitted to any other Institute for any degree or diploma.
c. I have followed the guidelines provided by the Institute in preparing the project report.
d. I have conformed to the norms and guidelines given in the Ethical Code of Conduct of the
Institute.
e. Whenever I have used materials (data, theoretical analysis, figures, and text) from other sources,
I have given due credit to them by citing them in the text of the report and giving their details in
the references. Further, I have taken permission from the copyright owners of the sources,
whenever necessary.

Signature of the Student

LAXMI VILASRAO SARDAR

MBA IVth Semester

3
 ACKNOWLEDGEMENT

I would like to thank to my honorable Project Guide, Dr. Ajay Pethe Head of the Department,
Department Of Business Administration, Datta Meghe Institute of Engineering Technology& Research,
under whose necessary guidance I have completed my project successfully. Without his unending help,
encouragement and motivation this would not have been possible.

Dedication and perseverance when supported by inspiration and guidance lead to success. For
me the inspiration and guidance were given by my guide who were accessible for me to obviate the
darkness of my problem with light of his knowledge of the relevant subject enriched by his hands on
experienced in the field of project. I truly sense it was privilege for me, to have them as my guide. I fill
highly honored working under them.

Signature of the Student

LAXMI VILASRAO SARDAR

MBA IVth Semester

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CONTENTS

EXECUTIVE SUMMARY............................................................................................................................................6
INTRODUCTION......................................................................................................................................................7
LITERATURE REVIEW.............................................................................................................................................18
OBJECTIVES OF THE STUDY...................................................................................................................................19
LIMITATION OF THE STUDY..................................................................................................................................20
RESEARCH METHODOLOGY..................................................................................................................................21
Sampling Designs:............................................................................................................................................21
Sampling Procedure:........................................................................................................................................21
Sampling Area:..................................................................................................................................................21
Sample Size:......................................................................................................................................................21
Data Collection:................................................................................................................................................22
Primary data:..............................................................................................................................................22
Secondary method:....................................................................................................................................22
Data Collection Method:...................................................................................................................................22
DATA ANALYSIS AND INTERPRETATION:.................................................................................................23
FINDINGS:..........................................................................................................................................................33
CONCLUSION....................................................................................................................................................35
RECOMMENDATION........................................................................................................................................37
BIBLOGRAPHY:.................................................................................................................................................39

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EXECUTIVE SUMMARY

Brand is a Guarantee, an assurance for a defined standard of quality for the first time and for every time
but not the vice versa. Brand is name or logo that plays the role in the mind of the customer. Brands do
not compete in the product area but compete for the mind space of the customer. A brand once
established in the mind of the customer becomes indelible when customer identifies itself with that
particular Brand.

Branding is an effective marketing strategy tool that has been used with frequent success in the past.
Branding can be an effective and powerful tool for all types of business organizations. If brand owners
use their product correctly, the payoffs can be substantial. However, if brands are mismanaged, the
results can be damaging.

This report is aimed to investigate the effect of brand on consumer buying behavior. How much
consumers are prepared to pay for branded products, how important they consider price, brand or other
factors during their purchasing decisions. The Report aimed at comprehensive literature review on
branding, brand loyalty, brand awareness, brand equity and brand perceptions, price sensitivity and
willingness to pay.
INTRODUCTION

Brand these days have become a status symbol. Customers all over the world now prefer branded
products. But why is the question. Is it the quality that attracts customers towards brand or some other
related factor? This study is aimed at analyzing the effect of brand on consumer buying behavior.
Along with finding the effect of brand on consumer buying behavior the purpose of the study is to have
an in-depth knowledge of what actually is branding and consumer behavior.

All the study has been conducted with reference to fashion industry in India. Firms in fashion industry
are competing to increase their profit share in the market and among these firms; branded clothing &
accessories has shifted the conventional style & interest of people. A brand which is sold at a high
price and the other which is sold at low price while both have same quality and attributes, why
is that? Brand studies always have remained the key attention of the marketer’s because of its
importance and direct relationship with consumers.

Marketers use brands as to get the competitive advantage on other competitors playing an
imperative role in the success of companies. Brand holds a great importance in consumer’s life.
Consumer’s choose brands and trust them the way they trust their friends and family members to
avoid uncertainty and quality related issues. India has a successful growing economy and the
Fashion industry of the country has advanced tremendously in the recent

years. The increasing use of fashion goods and the emerging market has intrigued foreign as well
as local brands to provide services to its customers.
CONCEPT OF BRANDING

Branding more or less for centuries has been a mean to differentiate goods of one producer from
that of another. Brand studies have always remained a key attention of marketers because of its
importance and direct relationship with consumers. Several studies illustrate that, marketers use
brands as the primary point of differentiation to get that competitive advantage on other
competitors playing an imperative role in the success of the company. Brand holds a very
significant place in the life of a consumer. Consumers choose brands and trust them to avoid
uncertainty and quality related issues.

Brand serves as a pivotal role for distinguishing goods and services from those of the
competitors. Aaker (1991) and Murphy (1998).the emergence of brand equity underlies the
importance of brand in marketing tactics and hence provides useful insights for managers and
further research, Keller (2003).

CHARACTERISTICS OF SUCCESSFUL BRANDS

A brand can be an everlasting and lucrative asset as long as it is maintained in a good manner
that can continue satisfying consumers’ needs, Batchelor (1998) and Murphy (1998). Although
successful brands can be totally different in nature, they share something in common, for instances
well-priced products and consistent quality, Murphy (1998).

As mentioned by Levitt (1983), there are four elements for building a successful brand, namely
tangible product, basic brand, augmented brand and potential brand. Tangible product refers to the
commodity which meets the basic needs of the customers. Basic brand, on the other hand, considers
the packaging of the tangible product so as to attract the attention from the potential customers. The
brand can be further augmented with the provision of credibility, effective aftersales services and
the like.
IMPROTANT ROLE’S OF BRAND

Brand is a name in every customer mind Mooij (1998) and it is characterize by a noticeable
name or symbol which can differentiate the goods and services from the rivals Aaker(1991) and
Keller(1998).in addition to a specific brand name, a brand is composed of products, packaging,
promotion, advertising as well as its overall presentation, Murphy(1998). From the consumer’s
perspective, brand is a guarantor of reliability and quality in consumer products. Roman etal
(2005) added to this, consumers would like to buy and use brand-name products with a view to

highlight their personality in different situational contexts, Aaker (1999) and Fennis and Pruyn
(2006).

Nowadays, consumers have a wide range of choice to choose from when they enter a shopping
mall. It is found that consumers’ emotions are one of the major determinants which affects their
buying behavior Berry (2000).

According to a research conducted by Freeride Media LLC (1998) on shopping habits, nearly one-
fourth of the respondents are impulse –buy products they have not budgeted for. When deciding
which products to p u r c h a s e , consumers would have their preference, which are developed in
accordance with their perceptions towards the brand.

Successful branding could make consumers aware of the presence of the brand and hence could
increase the chance of buying the company’s product and services, Doyle (1999).
Branding in Today’s Markets

A central function of branding is the facilitation of the consumer choice process. Due to the complexity
of having to select a product amongst thousands of similar offerings, consumers will instinctively attempt
to simplify their choice process by selecting brands that have satisfied them in the past. Thus, one can
conclude that pleasant past experiences is highly conducive to consumers associating benefits to a
brand. One can conclude that a central function of branding is its ability to negate the need for a
consumer to seek out information when a need or a want has been recognized, but rather, lead him to
a brand that has been satisfying in the past..

One must acknowledge however, that frequent purchasing of a brand cannot always be linked to
previous experiences, but can alternatively be formed by embedded perceptions. A consumer
might strongly favor a brand with no prior purchasing experience. This type of consumer behavior is
based on stimulus provided by direct exposure to advertising campaigns, a company’s PR efforts
or even a high concentration of local distribution in an area that is in close proximity to a consumer.

In terms of companies’ views on branding, it can induce the natural differentiation of their offerings,
which ultimately, will produce a state of competitive advantage. Differentiation can only allow for
competitive advantage if the cost of differentiating is significantly Lower than the revenue earned by the
sales. Differential advantage allows companies to showcase their offer in respects to other competitors
in the same marketplace.
Brand Equity

The term brand equity refers to a set of assets and liabilities associated with a brand, including its
name and symbol, which could impose beneficial or detrimental effects on the values arising
from the products or services Aaker (1991) and Yasin et al. (2007). Added to this, Keller (1998)
points out that brand equity signifies the unique marketing effects imposed on the brand.

Concerning the positive side of brand equity, it happens when consumers are willing to pay more
for the same level of quality just because of the attractiveness of the name attached to the product
Bello and Holbrook (1995). However, brand equity could be ruined if it is not properly

managed. For instance, poor product quality and customer services could adversely affect the
brand image, giving rise to a reduction in sales volume.

One of the quintessential examples regarding brand as a kind of equity is the imposition of laws
to protect intellectual property, Murphy (1998). In countries with well-established legal system,
the values of brands have been recognized to both the consumers and producers. In order to
combat piracy, many countries have set up laws to protect trademarks, patents, designs as well as
copyright. In addition, brand is also a tradable product with measurable financial value, Murphy
1998). It is not uncommon to find some familiar brands listed on the stock markets in which they
could be bought or sold. Brands like HSBC, Marks and Spencer, Vodafone, Sainsbury and Tesco
are all listed on the FTSE 100 index (London Stock Exchange, 2007). It is found that the
volatility of stock market could affect consumers’ purchasing mood, not to mention the
growth or declines of retail sales Blackwell (2002).

This is supported by the fact that brand equity depends on the number of people with regular
purchase Aaker (1996).The above examples highlight the values of brand equity for both
consumers and the firm. For

the consumers, brand equity could provide them with information about the brand which influences
their confidence during the purchasing process. There is a high propensity for consumers with
good perceptions to buy from the same shop again than those with poor perceptions. Past
purchasing experiences and familiarity with the brand could be attributable to the perceptions
generated from the consumers, Aaker (1991). As for the firm, brand equity could also be a source
for the firm to generate cash flow. For instance, the merger between adidas and Reebok in 2005 not
only increased their market share so as to compete with Nike in the US sports apparel market.
Brand Awareness.

Brand awareness is one of major determinants of brand equity. It refers to the ability of a
potential consumer to recall and recognize the brand, linking the brand with its corresponding
product class,Aaker (1991). The level of brand awareness lies in a continuum, with brand
recognition being the lowest level and the first named brand with unaided recall being the
highest level. It is important for the potential consumers to be aware of a product so that it can
become one of the purchasing choices. This is due to the fact that the product needs to enter the
awareness set before it comes to the consideration set,Blackwell et al. (2001) and an increase in
brand awareness is conducive toa higher chance of entering the later set Nedungadi, (1990).
In this way,brands with higher level of awareness would be more likely to be purchased,

Yasin et al. (2007). This could probably explain why consumers tend to buy a recognizable
brand rather than an unfamiliar one,Hoyer (1990) and Macdonald and Sharp, (2000). Several
factors can alter the level of brand awareness. In case of China, its geographical location and
politics could affect the consumer brand awareness level seriously. According to research

conducted by Delong et al. (2004), owing to geographical differences, Chinese consumers cannot
distinguish US product brand names from the European ones.
As mentioned by Keller (1998), brand awareness can be enhanced through repeat exposure to the
brand. In order to achieve brand awareness, two tasks are to be accomplished, namely increasing
brand name identity and associating it with the product class. Advertising and celebrity
endorsement could be some useful tools for raising brand awareness. It is found that
advertisement attitude is attributable to the influence on brand attitudes, affecting consumer’s
intention to purchase, Mackenzie et al.(1986) and Tsai et al. (2007). In recent decades, there is
an increasing number of advertising campaigns around the world. Consumers are hence well
equipped with comparative elements to judge which product or service to purchase, Alvarez and
Casielles (2005). Moreover, celebrity endorsement can give rise to source credibility and source
attractiveness.
Brand Loyalty.

Brand loyalty is one of the core components of brand equity and also positively and directly
affected brand equity, Atellan et al. (2005). Under the influence of brand loyalty, consumers
continue to buy the brand, regardless of the superior features, prices and convenience owned by its
competitors Aaker (1991). The more loyal the consumers are towards the brand, the less vulnerable
the customer base would be. Based on the practice that repeat buying is one of the indicators for
brand loyalty, Keller (1998), however, challenges that such measure may not be totally accurate.
This is due to the fact that some consumers make habitual purchase towards a particular brand just
because of its prominence in stock and effective promotions.

Keller (1993, 1998) further divides brand associations into three categories, namely attributes,
benefits and attitudes. Attributes refer to the specific characteristics a product has. Attributes can be
further categorized into product-related attributes as well as non-product related attributes.

For product-related attributes, the overall features of the product or service are concerned. As for
non-product related attributes, price information, packaging, user imagery as well as usage imagery
are to be considered. Benefits are another category in brand associations. They can be classified into
functional, experimental and symbolic. Function benefits signify the physical or basic advantages a
brand may have. For experimental benefits, they are related to consumers’ emotional feelings.
Symbolic benefits, on the other hand, refer to the signal effect that a brand may impose on the
consumers. Signal effect is determined by the image of consumers and also the personality of the
brand.
Consumers are attracted by the signal when they purchase a product in a particular brand. Finally,
attitudes are regarded as the consumers’ overall assessments towards a brand. They incorporate
summary evaluations of information which represent how consumers feel in a long run, lying in a
continuum from positive to negative, Abbott and Hogg(1998).

Different brands have different associations to their prospective customers. Such kind of associations
can provide bases for them to make purchase decisions and even become loyal to the brand,
Aaker (1991). Associations towards a brand can create value for the firm and so its customers in a
number of ways. First of all, they help the customers to process or retrieve information, Keller
(1998). Customers are sometimes forgetful and associations towards a brand serve as a brief
summary for the customers to make their purchasing decision. Associations can also be used to
trigger the customers to recall their past experiences, making the customers remember the brand by
heart. Second, brand associations can differentiate one brand from another. It is about brand
positioning that a well-positioned brand will find it hard to be attacked by its competitors due to its
uniqueness. This can make the brand unbeatable but it is quite difficult to achieve since consumer
taste changes quite rapidly. Third, brand associations may include some product attributes or
consumer benefits which encourage the consumers to purchase the brand. Forth, some associations
can engender positive feelings. For examples, adidas slogan ‘Impossible is nothing’, Madonna
appearance in H&M’s collection advertisement can stimulate customers their positive feelings about
the products.

Once brand associations are constructed in a meaningful way, a vivid brand image is established.
Brand image possibly affects how consumers perceive the brand and hence their purchasing
behavior. There may be products on the market with similar quality and design. However, the
specific brand image attached on a product may differentiate itself from the others.
Perceived Quality

Another important attribute to brand equity is perceived quality. It is defined as the customer’s
perception of the overall quality or superiority of a product or service, Aaker (1991), Keller
(1998) and Yasin, (2007). Since it is a kind of intangible, overall feeling towards a brand, itIs
subjective in nature and hence the knowledge of actual detailed product specifications couldhave
little correlation with the perceived quality.

Perceived quality of a brand could help generate values by providing a pivotal reason-to-buy,
differentiating the position of a brand, charging premium price, motivating channel members to
perform well and also introducing.
LITERATURE REVIEW

The concept “ brand image” has drawn significant attention from academics and practitioners since it
was put forward, because it played an important role in marketing activities. Although brand image
was recognized as the driving force of brand asset and brand performance, few studies have elaborated
on the relationship between brand image and brand equity. Based on the brand image theories, this
study reviewed extant studies about the impact of brand image on consumer from perspective of
customer equity. It also presented the shortcomings of current research and pointed out the trends for
future study.

The topic of consumer behavior is one of the massively studied topics by the researchers and marketers
in the past and still being studied. Researchers show different reasons as to why consumer behavior
has been the topic of many academics and researchers. One of the common views is that
understanding consumer behavior has become a factor that has a direct impact on the overall
performance of the businesses (Kotler and Keller, 2012). Another view suggests that understanding
consumer behaviour has become crucial especially due to fierce competition in retail industry in the UK
and worldwide (Lancaster et al, 2002). This chapter will introduce some other areas of research
background of consumer behaviour addressing the works of researchers and marketers.
Moreover, consumer decision making process, in particular, five stages of consumer decision making
process will be discussed in detail.
OBJECTIVES OF THE STUDY

Importance of understanding branding and its impact on modern day markets is vital to the health and
growth of most industries. The aim of this report is to put into perspective the functional values of
branding as well as assess its role in the consumer purchase decision-making process.

 Understanding the concepts of branding and consumer behavior.

 To study the effect of brands on consumer buying behavior in relation to Readymade garments.

 To analyze the branding strategies adopted by some of the companies in the readymade garments to
woo the consumers into buying their products.

 To do a comparative study of the branding strategies adopted by the companies in the readymade
garments.
LIMITATION OF THE STUDY

 This project is limited due to time constraint as it involves a lot of complex variables which
require a detailed study over a period of time.

 The project did not cover the effect of branding on a very large scale. Only a small population
was studied, which may not be enough to show correct picture.

 The consumers were very reluctant to answer the question and the response may be biased.
RESEARCH METHODOLOGY

Sampling Designs:

To achieve the goals of this study, we randomly distributed the questionnaires by hand to
students in a large university. Previous studies have suggested that university students can be an
appropriate sample for e-commerce research as they have the opportunity to use the internet for
communication purposes and commercial transactions and it has been proven that most online shoppers
tend to be young and educated. They are also an appropriate sample because college students (age 18-
31 years) are more interested in the aesthetics aspects of site stimuli such as images, background colors,
and animation (Cyr, 2014), and visual design is the main interest in the current study.

Sampling Procedure:

This research provides the insight to the companies and business that how they can make better
their marketing and promotional tools to capture their customers. With the help of this study Marketing
Managers of companies can understand that how important a brand image and advertisement is to boost
up any business. This is a real picture of society that brand image and advertisement playing a crucial
role to change the people’s buying behaviour.

Sampling Area:
Pune city

Sample Size:

The sample size of the study is limited to 150 respondents of Pune city.
Data Collection:

Primary data:

Primary method includes observation method, interview/questionnaire method, and case study
method.

Secondary method:

Secondary Data Is Collected by Using Research Paper, Journal, Books And Website

Data Collection Method:

Questionnaire Method.
DATA ANALYSIS AND INTERPRETATION:

1. Last time made a purchase over the internet.

Last week 9

Last 15 days 17

last month 34

Last year 40

Interpretation
According to survey Last time made a purchase over the internet 9 respondent says that last
week,17 says last 15days,34says last month and 40 says last year
 2. Items have you purchase on the internet.

Books 10 10%

Tickets 80 80%

Video / DVD’s/Games 25 25%

Electronics equipment 18 18%

Computer hardware / software 12 12%

Clothing 8 8%

Music 22 22%

Interpretation

According to survey 80% respondent have purchased ticket while 8% preferred clothing. Other like
Books 10%, Video games 25%, electronic equipment18%, Computer& software12% and music 20%.
3. Mode of payment

Credit cards 27

Debit cards 10

Online Bank transfer 8

Cash on delivery 55

Interpretation
According to survey 27 respondents make payment through Credit cards, 10 Debit cards, 8 Online
Bank transfer and 55 payment Cash on delivery.
4. Factor affecting online shopping Information about product and Services

Rating 1 2 3 4 5

Respondent 10 16 18 24 32

Average Score of respondent = (10*1+16*2+3*18+4*24+5*32)/100=352/100=3.52

Interpretation
According to all score, it can be interpreted that information about product and service is a important
factor while using online shopping.
5. Time saving

Rating 1 2 3 4 5

Respondent 12 8 28 22 30

Average Score of respondent = 350/100 =3.50(same as early calculate)

Interpretation
According to this score, it can be interpreted that time saving can be consider as an important factor
while using online shopping.
6. Convenience

Rating 1 2 3 4 5

Respondent 8 17 16 26 33

Average Score of respondent = (8*1+17*2+16*3+26*4+33*5)/100=359/100=3.59

Interpretation
According to this score, it can be interpreted that convenience in online shopping is an important
factor.
 7. Security

Rating 1 2 3 4 5

Respondent 0 0 24 46 30

Average Score of respondent = (24*3+46*4+30*5)/100=406/100=4.06

Interpretation
According to this score, it can be interpreted that security in online shopping is an important factor.
 8. Attractive offer’s (Deals/Discount)

Rating 1 2 3 4 5

Respondent 10 38 37 10 5

Average Score of respondent = (10*1+38*2+37*3+4*10+5*5)/100=262/100=2.62

Interpretation
According to this score, it can be interpreted that attractive offers are neither important factor nor
unimportant factor for online shopping.
 9. Delivery time and mode of payment

Rating 1 2 3 4 5

Respondent 7 13 25 22 33

Average Score of respondent =( 7*1+13*2+25*3+22*4+33*5)/100=361/100=3.61

Interpretation
According to this score, it can be interpreted that Delivery time And mode of payment in online
shopping is an important factor
 10. Satisfaction level for your experience of online shopping

Rating 1 2 3 4 5

Respondent 0 0 24 46 30

Average Score of respondent = (24*3+46*4+30*5)/100=406/100=4.06

Interpretation
According to this score, it can be interpreted that satisfaction level in online shopping is an important
factor.
FINDINGS:

Consumer Behavior is the study of the processes involved when individuals or groups select, purchase,
use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Consumers
take many forms, ranging from an eight-year-old child begging her mother for Pokémon shoes to an
executive in a large corporation deciding on a multimillion-dollar computer system. The items that are
consumed can include anything: Gucci handbags, a massage, democracy, rap music, or hoopster
rebel Dennis Rodman. Needs and desires to be satisfied range from hunger and thirst to love, status,
or even spiritual fulfillment. Consumer behavior is the study of the processes involved when individuals
or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs
and desires.

 A consumer may purchase, use, and / or dispose of am product, but these functions may be performed
by different people. In addition, consumers may be thought of as role players who need different
products to help them play their various parts.

 Fashion terminology is often used by consumers in overlapping ways. A style of apparel is defined by
distinctive attributes that distinguish it from others in its category, such as different types of skirts; a
fashion is a style that has been accepted by many people; high fashion consists of new, expensive styles
offered by upper-end designer. A trend is a general direction that may lead to a fashion. Merchandise
classifications include designer, bridge, better, moderate, and budget prices.

 Fashions tend to follow cycles. The two extremes of fashion adoption known as collective
selection. Perspectives on motivations for adopting new styles include psychological, economic, and
sociological models of fashion.

 Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to our
understanding of the dynamics of popular culture.
 The Internet is transforming the way consumers interact with companies and with each other. Online
commerce allows us to locate obscure product from around the world, and consumption communities
provide forums for people to share opinions and product recommendations. The benefits are
accompanied by potential problems, including the loss of privacy.

 The field of consumer behavior is interdisciplinary; it is composed of researchers from many different
fields who share an interest in how people interact with the marketplace. These disciples can be
categorized by the degree to which their focus is micro (the individual consumer) versus macro (the
consumer as a member of a group or of the larger society).

 There are many perspectives on consumer behavior, but research orientations can roughly be divided
into two approaches. The positivist perspective emphasizes the objectivity of science and the
consumer as a rational decision maker. The interpretive perspective, in contrast, stresses the subjective
meaning of the consumer’s individual experience and the idea that any behavior is subject to
multiple interpretations rather than to one single explanation.
CONCLUSION

Readymade garment is really becoming big business. The domestic market too presents immense
opportunities with consumer spending on the rise and organized retailing growing. But should a garment
player go global or sell at home?

Some players such as Raymond and Zodiac Clothing have chosen to be aggressive in both markets.
Even as they plan to improve their retail presence over the next three years, both are expanding their
manufacturing facilities in Bangalore to cater to the expected rise in international demand.

Interestingly, major export players such as Ambattur Clothing (Color Plus) and Acme Clothing
(Prorogue) have, in the past, placed their bet on the domestic market.

These companies quickly managed to give bigger players a run for their money. But, as Color Plus
discovered, further growth could come only from a wider distribution network, which needs deep
pockets. Raymond stepped in and acquired the brand.

Operating in the domestic market poses an entirely different set of challenges from that of the export
market. It requires more than manufacturing expertise and a heightened fashion- consciousness.

Established names, however, do not have it easy either. The entry of international brands such as
Tommy Hilfiger into the Indian market is likely to be followed by more players.

Competition is likely to hot up and keep domestic players on their toes. The retail landscape is
changing, and the traditional distribution strategy of apparel players is in for an overhaul. Figuring out
which price point to operate in is yet another challenge for an apparel maker. Challenging, but
interesting, times are ahead for the readymade garment industry.

Apparel retailers, with little retail expertise, had to build their own network, at considerable expense.
The rapid growth in recent years of various retail formats, such as departmental stores and malls, has
given a fillip to the industry.
A boost to the industry would come from allowing foreign direct investment in retailing, which would
increase space considerably and also bring international practices to India. This may also encourage
newer entrants, once the distribution costs decline.

Private labels tend to d o well during recessions. Retailers enjoy better margins on their own labels,
and are also able to price them lower.

Players such as Madura Garments, which have a presence in the segment through Allen Solly, believe
that once women try out private labels and get more accustomed to Western wear, they are likely to
upgrade to a more expensive brand.

But players may still find it tough to cater to this market. They would have to move towards a low-
margin, volume-driven business. This would also need a far larger distribution network than what exists
today.

Few retail formats in India operate on a truly large scale. Giants such as Wal-Mart and Carrefour,
which have the ability to drive volumes, are what the industry would need.
RECOMMENDATION

1. Rural market. Knowing the huge size of rural population of India, it is natural that the rural market
is attractive to marketers. Company should study purchasing power, life styles, buying habits, optimal
usage level. Brooke Bond for instance could capture the crux of the challenge when they started
marketing Re 1 tea packets.

2. Understanding role of children. Marketers should study the role of children in buying decision –
as influencers and decision makers. However, the challenge remain how does one communicate with
children? Advertising recalls being more in the case of children-one way is clear but with every one
trying to apply the same technique, marketers will be gradually disillusioned with the method. Possible
ways of circumventing this problem may be to market the product through schools or to use the
imitative tendencies of children by influencing their peers.

3. Distribution. Distribution cost are an increasing component of marketing cost marketers will
have to find ways through which one can achieve efficient as well as economic distribution. One
solution is joint distribution or by adopting direct marketing.

4. Packaging. With self-shopping gaining grounds and shelf space getting limited, packaging
becomes an important factor that marketers have to be concern about. Companies should identify
the requirements and pack commodities according to demand.

5. Customer service challenge. In an increasingly competitive market, retention of a customer is

possible only through better service. Marketers will require devoting to more efforts to understand
the customer view of quality and convenience. Marketers should do regular research to find this
fact.
6. Adaptation to newer environment. As government withdraw Entry barriers and relax restriction
on merger or takeover many companies should install superior technology and resort to
merger – acquisition route to make their unit more efficient.

7. Creativity and innovation in overall marketing programmers. Marketers have to develop

organizational structure style and functioning, which enable them to act fast and Bring in
innovations in their marketing programmers.
BIBLOGRAPHY:

Books and Journals

 Kevin Lane Keller (2004), Strategic Brand Management, 2nd, Pearson Education, New Delhi
 Consumer Behavior, 6th Edition, by Lean G. Schiffman and Leslic lazan Kanuk.

 Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

Websites

 www.google.com
 www.wikipedia.com
 www.levis.com
 www.peterengland.com

Magazines

 Brand Equity (Economic Times)