1

PROJECT TITLE: “EMPIRICAL STUDY OF BRAND IMAGE OF ITC WILLS LIFE STYLE”

2 ABSTRACT

Brand image refers to rational measurements like quality and strength of the brand. It includes consumer's impressions about brand's physical attributes, its performance, the functional benefits, the kind of people who use it, the emotions and associations it develops and the imagery or the symbolic meanings it generates. To put it differently, how a consumer perceives a brand in its totality is the brand image and encompasses both physical and perceptual components. A strong brand image can be a powerful marketplace motivator. It differentiates from the competition. It can allow charging a premium price for products or services. It can elevate the value of the organization. ITC's Wills Lifestyle has been established as a vibrant fashion brand for the premium consumer. Wills Lifestyle offers a complete lifestyle wardrobe for the premium consumer, incorporating the latest fashion trends for both men and women. A nationwide chain of exclusive specialty stores provides the Indian consumer with a truly 'International Shopping Experience'. Currently there are 42 Wills Lifestyle stores in 30 cities across the country, and the brand is making rapid strides in terms of expansion – doubling the number of stores over the next three years. They are nurturing the `Wills' trademark to be a clear leader in premium lifestyle retailing in India. Over time, they aspire to position it as a leading Indian international brand with a significant global presence.

3

SYNOPSIS Desired area of Research:Indian retail industry

Title of the Thesis:An Empirical Study on the Brand Image of ITC Wills Lifestyle

Problem Definition/Hypothesis/Research Objective:The objective of the research is to study about the following: 1. The impact of brand image on buying behavior in retail industry. 2. To investigate the relationship between the sales volume of a firm and its brand image of ITC wills lifestyle. 3. What influence does brand image and brand reputation have towards achieving a sustained competitive advantage in the retail industry?

Introduction to the area of Research:Retail is the booming sector in India currently. Big corporate names are planning enter this sector as the market is expected to have enough potential. The fact that the major chunk of the retail market in India is unorganized and only 3% of the market is organized makes this sector all the more lucrative and challenging at the same time. The thesis is aimed at exploring how ITC wills lifestyle has grown over time and how the brand has evolved in the minds of its respective target group of consumers.

Primary data are data freshly gathered for a specific purpose or for this research project. R. purpose and already exist somewhere. SANTOSH KUMAR . Primary data. It includes questionnaire from consumers.4 Scope of thesis work:The thesis would focus on Indian retail industry as a whole and how ITC wills lifestyle is operating in this industry. It includes Information from various books related topic.Mr. magazines and External Guide Name Company .B.Vice President & Acceptance Head. Research Methodology:The methodology that will use is Primary research as well as Secondary Research. North . The thesis will focus on the brand image of wills life style in the minds of the consumer and the evolution of that brand image.Secondary data are data that were collected for another internet.Citibank Designation . Secondary data.

R.B Santosh Kumar. WILLS LIFESTYLE for helping and guiding me through the integrities of the brand building of WILLS LIFESTYLE. Last but not the least I am thankful to my institute for giving me an opportunity to undertake this thesis.North. Citibank for his continuous support and encouragement and without whom this project would not have been possible.5 ACKNOWLEDGEMENTS I would like to express my heart felt gratitude towards Mr. I am also sincerely thankful to Ms Subhadra – Assistant brand Manager . . Vice President & Acceptance Head .

WLS STRATEGY___________________________________________33 WILLS LIFESTYLE INDIA FAHSIONWEEK_______________________________________37 JOHN PLAYERS__________________________________________________41 THE FUTURE____________________________________________________42 DATA ANALYSIS AND FINDINGS__________________________________48 CONCLUSION AND RECOMMENDATIONS__________________________58 BIBLIOGRAPHY__________________________________________________ 60 APPENDEX_______________________________________________________61 .6 TABLE OF CONTENTS INTRODUCTION _________________________________________________1 OBJECTIVES OF THE STUDY______________________________________ 4 RESEARCH METHODOLOGY______________________________________ 5 INDUSTRY PROFILE______________________________________________7 COMPANY PROFILE_____________________________________________ 25 • • BUILDING A STRONG BRAND .

7 INTRODUCTION Large format retail businesses dominate the retail landscape in the United States and across Europe, in terms of retail space, categories, range, brands, and volumes. Indian retail industry cannot hope to learn much by merely looking at the Western success stories in retail. Their scales of operations are very huge, the profit margins that they earn are also much higher and they operate in multiple formats like discount stores, warehouses, supermarkets, departmental stores, hyper-markets, convenience stores and specialty stores. Though many of these formats are coming up in India now for example BIG BAZAAR of the future group and specialty stores like THE MOBILE STORE etc. But one of the biggest challenges faced by Indian retailers of the time is that the economy and lifestyle of the West is not in line with that of India and hence they will have to tactfully customize their style of operations in order to successfully Meet the Indian consumer’s demands other than simply copying the western retailing formats. Retail brand building Product brands make life easier. They make it possible to recognize products, which simplifies the decision making process. Furthermore, product brands make the consumer a part of a group, they create a sense of belonging. But retail brands do even more than that. These brands are visible platforms for kindred spirits: the physical shop is a container for the entire retail formula and therefore constitutes a large part of the retail brand. The tangible nature of retail makes the familiar slogan ‘experiencing the brand’ most logical of all, in a physical store. Retail brands have gained in popularity in the past few years. Indeed, they have a number of advantages above product brands. In the first place, they are closer to the consumer. The physical store space offers the possibility of literally and figuratively communicating with consumers at the moment of purchase (one-to-one marketing). Retailers can show who they are and what they stand for through the store formula. Moreover, in principle, retailers are neutral, because the choice of product brand (or store brand, if present) is left to the consumers. Retailers help consumers because they make a shrewd pre-selection and present their product assortment in a specific manner. Once a consumer knows and trusts a

8 retailer and has good experiences and memories about a store, the foundation has been laid for a long-lasting relationship that will ultimately lead to customer loyalty. Retail branding creates a brand preference, which goes beyond the product or service in itself. A positive brand image is created by marketing initiatives that link strong, favorable, and unique associations to the brand in memory. The definition of customer-based brand equity does not distinguish between the source of brand associations and the manner in which they are formed; all that matters is the resulting favorability, strength and uniqueness of brand associations. The realization has important implications for building brand equity. Besides marketer-controlled sources of information, brand associations can also created in a variety of other ways - by direct experience, from information communicated about the brand from the firm or other commercial or non-partisan sources and word of mouth; and by assumptions or inferences from the brand itself or from the identification of the brand with a company, country, channel of distribution, or some particular person, place or event. The significance of brand image has risen sharply in the last few years. At the segmentlevel, the increase in importance is greater for the retail segment, indicating the relevance of the brand among the more expensive market segments. Corporate major ITC's exclusive fashion retail chain Wills Lifestyle has recently implemented the Intentia solution and Predator (Proactive Demand Accelerator) integrated retail solution, which is being used in the manufacturing unit of ITC Lifestyle Retailing Business Division (LRBD) and also its chain of specialty stores spread across 38 locations. The integrated solution will help the company streamline its operations in the areas of retail, manufacturing, finance and accounting management, customer order processing, distribution, and supply chain management. The work was started in July 2003 and became fully operational in end-2004. According to Prabir Sengupta, vice-president (finance & IT), ITC Wills Lifestyle, the integrated Intentia Fashion solution and Predator solution is highly scaleable and has helped the retailer to effectively manage its back-end by providing stock visibility across the supply chain from 'vendor' to 'shelf,' and to optimize inventory levels for savings on interest costs and improved return on investment (ROI), besides other benefits. As a result, we have been enjoying improved service levels at retail stores and overall increased efficiencies with our manufacturing and distribution operations.

9

Before deciding on Intentia's offering, ITC Wills Lifestyle evaluated various solutions to find out the one that would best meet the retail chain's multi-location requirements. The solution is built on 100 per cent Java technology and provides a future-proof platform with high scalability, independence and interoperability with other extension solutions.

10 OBJECTIVES OF THE STUDY • • Impact of brand image on buying behavior in retail industry To investigate the relationship between the sales volume of a firm and its brand image of ITC Wills Life Style • What influence does brand image and brand reputation have towards achieving a sustained competitive advantage in the retail industry .

preference and acceptability of ITC Wills Life style from its existing customers and new potential customers. newspapers. A pre test will be conducted based on the secondary data sources like magazines.11 RESEARCH METHODOLOGY As I have to find the brand image. . Research Design According to Saunders et al (2005) "Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure". loyalty. Therefore the pre test would be validated with the data collected through the primary research. via telephone and via e-mail. internet etc. Descriptive research using opinion questionnaires will enable researcher to identify and describe the consumer preferences and needs. To meet the required objectives the instrument will be used for collecting data was questionnaire method. Questionnaire is defined as a general term to include all techniques of data collection in which each person is asked to respond to the same set of questions in a predetermined order. A pre test is essential to have an idea of the most preferred brand in the urban market based on which the final questionnaire will be prepared. The study aims to analyses the consumer buying behavior with respect to brand image. It allows the study of specific concerns and theory. Keeping in mind the objective of the study the research design kept is descriptive and exploratory. The research will be carried out by collection of data through interviews conducted at the personal interview.

Sampling design Since the reported study will be concerned with analyzing the consumer buying behaviors with respect to brand image..As my study is based on the urban sector. 1. Sampling Method -These are the methods which I may use for my research.12 Data Collection Primary Data will be collected through structured questionnaire. 2. research journals. However. and convenience sampling.. Secondary data sources such as use of the books. my target population for sampling will be on Delhi and NCR. Sampling Technique -I may use both Probability and Non probability sampling techniques. Sampling size – 100 . these are the only important secondary sources that were found to be of any relevance to the research area. systematic sampling. Those are: Simple random sampling. Judgment sampling 3. Sampling Frame . websites and commercial reports published by well-known authors in the similar area have been analyzed..

In Chennai the growth rate is 12 percent while in Hyderabad it is 7 percent and in Kerala it is 3-4 per cent per annum.13 INDUSTRY PROFILE Organized Retail Industry in India India has the highest shop density in the world and the present retail market in India is estimated to be US$ 200 billion of which only 3% (around US$ 64 billion) is in the organized Sector. The main theme of enquiry of this paper is what it all means for the Indian society. revenues from the sector are expected to triple from the current US$ 7. This organized retail sector is poised for a take off.5 billion. The growth is much faster in south India than in northern states. beverage and tobacco is $195 billion which cover 65 per cent. With the organized retail segment growing at the rate of 25-30 per cent per annum. The paper explores the evolution of this sector of economy. In coming years Co-brands labels will be more in these products. As per Technopark study the sales in the organized sector for food. The total retail market in south India is $94 billion and of this organized retail is $8. India is ranked second in the global retail development index out of 30 by AT Kearney. In southern part of India the organized retail market growth is estimated as 35 per cent per annum. Figure 1 shows the comparative penetration of organized retail in India. 85 per cent of organized retailing is taking place in India’s urban areas while 66 per cent of it taking place in India’s 6 main cities alone.7 billion to US$ 24 billion by 2010. . Sale of personal care product is $15 billion (5 per cent) and apparel at 7 percent around $21 billion. The share of modern retail is likely to grow from its current 3 per cent to 15-20 percent over the next decade.

Tatas. the Friendly neighborhood stores selling every day needs. Gwalior Suitings. Nilgris are some of the examples. The economy is growing between 7 and 8 percent and the resulting improvement in income dynamics along with . Multi brand retailers came into the picture in the 1990s. Bharti. Calico. The millennium year saw the emergence of super markets and hyper markets. Walmart is testing the waters by agreeing to provide back end and logistic support to Bharti for establishment of retail chains with a view to study the market for future entry when the FDI guidelines change and to establish a backbone supply chain. In the 1980s manufacturer’s retail chains like DCM. Bombay Dying. HLL. Now big players like Reliance. The big international retail bigwigs are waiting in the wings as the present FDI guidelines do not allow them to own retail outlets in the country. A unique example was the establishment of margin free markets in Kerala. India is witnessing an unprecedented consumption boom. In the food and FMCG sectors retailers like Food world. Titan etc started making its appearance in metros and small towns. Subhiksha. Music world and in books Crossword and Fountainhead are some others. In music segment Planet M. Shopping Centers began to be established from 1995 onwards.14 Evolution of Retail Market in India In the beginning there were only kirana stores called Mom and Pop Stores. Table 1 shows the different phases in the growth of organized retailing in India. ITC are entering into the organized retail segment.

of which organized retailing (i. Fastest growing retail segments in India Retail industry in India is largely unorganized and predominantly consists of small. and is projected to attain US$ 23 billion by 2010. 18. which is quite low in comparison to the developed economies (Bajaj. The modern retail formats are .4 billion.. independent. roughly in line with China.a. 2005) . organized retail would constitute up to 9 percent of overall retail sales. There are around 5 million retail outlets in India.4 sq. That’s roughly in line with the US. At these levels. organized retail trade in India was worth Rs. the per capital retailing space is about 2 sq. In 2005. modern trade) makes up 3 percent or US$ 6. Total retail sales area in India was 490 in 2005. In India.e. with an average selling space of 29. There are also unaccounted number of low cost kiosks and pushcarts/mobile vendors. ft. owner managed shops. The average urban household income in India is about $3. Retailing is India’s largest industry in terms of contribution to GDP and constitutes 13% of the GDP. Tuli & Srivastava.000 a year. This is a very big opportunity for us” Organized retailing in India represents a small fraction of the total retail market. and the consuming class has grown from 35 billion families in 1996 to an expected 110 million in 2007. Retailing in India is currently estimated to be US$ 200 billion.15 factors like favorable demographics and growth in aspirational consumption are the drivers.225 billion. mt per outlet. Organized retail is expected to grow at 25-30 percent p.

Reliance will. soon encounter competition from large domestic players like ITC.16 showing robust growth as several retail chains have established a base in metropolitan cities. The striking point is that it is the big names in the organized retail business that are eyeing these new opportunities. . Small-town India is the next big thing in the retail business. Consider these numbers: in 2005. Whether it’s Kanpur. Indore. instant. ready to cook. which is adding to the family’s income has led to an increased demand for better quality products while lack of time has led to a demand for convenience and services. especially in south India. space and rentals are proving to be the biggest constraints to the development of large formats in metropolitan cities since retailers are aiming at prime locations. In urban India. and are spreading all over India at a rapid pace. families are experiencing growth in income but dearth of time. the contribution of smaller cities to total organized retailing sales was 15%. From a handful of malls in the mid ’90s. And 700 new malls are coming up all over India-40% of them concentrated in the smaller cities. cash and carry or plain retail models. the mall and multiplex culture has caught on in the country’s smaller cities. India today has nearly 200 malls spread across large and small cities. telecom maverick Sunil Mittal's Bharti group. especially in the metropolitan and large cities in India. However. More and more women are taking up corporate jobs. the Aditya Birla Group. Baroda or Surat. Organized retailing in smalltown India is growing at a staggering 50-60% a year compared to 35%-40% in the large cities. It’s raining malls in small-town India. ready to eat food has been on the rise. Wal-Mart and Tesco will inevitably move in either with franchised. There is also strong trend in favor of one-stop shops like supermarkets and department stores. powered by the burgeoning purchasing power of India’s middle-class. that proportion is expected to grow to 25%. RP Goenka's RPG Enterprises and the Russia's Essar Group. By the end of this year. The demand for frozen. all of whom are finalizing their retail plans while global players like Carrefour. Ahmedabad. Agra.

in turn. are dwarfed by Mukesh Ambani’s ambitions to do a Wal-Mart in India by investing $5. a strong demand for retail space has more than doubled rentals in cities like Jaipur. Typically. plans to increase its footprint by doubling the number of stores from 50 to around 100 in the next two to three years. however.60 billion (Rs 25. against Rs 100-120 per sq foot a month in the bigger cities. This gap is expected to widen over the next few years. creating a pull for smaller towns that will. The small-town retail boom could be considered a show-case of India’s free-market prosperity. Looking ahead. While in the metros.600 crore in 100 stores in 30 cities. At present. exploit the first-mover advantage and establish strong brand loyalties in these relatively under-served markets. These cities are untapped markets and retailers find it important to establish their brands there. in small towns. Indeed. the garments and accessories retailing division of ITC Ltd. It is being powered by healthy economic growth that is making more Indians more prosperous.000 crore) and covering 1. not to speak of the gains that accrue from reduced staff attrition rates. Average rental values for ground-floor space are Rs 50-60 per square foot a month. power the small-town retail revolution. Even Sunil Mittal’s Bharti group has announced plans to get into food and farm products retailing. plans to invest Rs 3. All these plans. . India’s largest retailer. this is probably the most compelling example of the trickle-down impact of liberalization in India.500 cities and towns. increasing its retail space from 3. However. Similarly. Organized retailers have understood this and are hoping to ride the wave. Wills Lifestyle. not just in terms of employee costs but real estate costs as well. these malls are way beyond the expectations of the consumers. Chandigarh. retailers are filling gaps by increasing more stores. Surat and Lucknow. mostly in smaller cities. small cities offer a 15% to 30% cost advantage over larger cities. retail analysts suggest that the sustained success of the IT and ITeS industries in small towns is expected to create more jobs and enhance spending power.5 million square feet to 30 million sq feet. The RPG group plans to open malls in all cities with a population of over 8 lakh. real estate costs present a major incentive for India’s organized retailers.17 The Kishore Biyani-owned Future Group.

organized retail is expected to grow to $22 billion. But organized retail is estimated at only $8 billion. Pizza Hut. Lucknow and Nasik that will power India up the rankings soon. the opportunity is huge—by 2010. Indian retailing is clearly at a tipping point. Domino’s Pizza. However. It is names like Dehradun. India is currently the ninth largest retail market in the world. McDonald’s. The Indian retail market is estimated at $350 billion. A new world-class. For instance. With the growth of organized retailing estimated at 40% (CAGR) over the next few years.18 Most of the smaller cities are seeing plenty of action. Vijayawada. Ruby Tuesday and Subway. Ludhiana can already boast worldwide restaurant chains like KFC. . 25-acre commercial centre and some seven new shopping malls-cum-entertainment centers are under construction.

Apna Bazaar. Rajesh Parashar. ask the question -. The significance of these remarks sinks in gradually. most have few customers. All this retail activity. all of which are within a two-kilometer radius of his residence This is paralleled by the developments happening in the Delhi suburb of Ghaziabad. giving a somewhat hollow ring to the much-talked-about retail boom in the country. a resident of the area has the option of shopping at Big Bazaar. The same goes for several other retail outlets and many of the other malls in the vicinity. Gurgaon on the outskirts of Delhi -bears a deserted look.excluding what might be brought in by new global and large local players henceforth -. he adds poignantly. To a great extent the success or the failure of malls will hinge on the consumer population of the area. and the sheer gigantic size of the investments planned. In what seems like a quirk of circumstance." is KPMG's executive director. and more. Foodland or at the local Sai Supermarket. it could sustain twoto-three large players. Spinach. With planned investments of $22 billion over the next five years -. while Reliance is slated to open shop on the third floor. Deepankar Sanwalka's laconic answer. elsewhere.the retail sector is expected to grow 40% to $427 billion by 2011.located in the IT and ITES hub i. Customer footfalls.19 Growth of Indian Retail Industry DLF Mega Mall -.e. where the upcoming Shipra Mall at Indirapuram already has Big Bazaar operating out of its lower-ground floor. but the dozen-odd shops operating in its proximity wear a deserted look. a retail chain like Future Group's Big Bazaar may be clocking heady sales (growing at 100% year-on-year). Of the few operating shops in this large mall. "If the spending power of consumers is high in a locality. Mumbai. Subhiksha.does the consumer's wallet have enough money in it for everyone? "Only time will tell. . True. Shoprite. however. malls have sprung up all over urban India in anticipation of a consumption boom that may itself prove to be eventually truant." Not so. a suburban locality of India's financial nerve. are more in the projections of the occupiers of the mall than real. Move to Mulund (West).

however. Then there is the nature of the business itself. it'll woe betide the retailer. which is 3% of the whole currently.5% per annum till 2015. is in turn pegged to grow to $64 billion by 2015. "There is enough room for six-to-eight players. the near-absence of any modern supply chain logistics. it is the expectation of a large working and earning population that has attracted most global retailers to the country. And one consequence of all those investments will be the fact that India's present two square-feet per capita retailing space will rise by 15-20% by 2010." says Reliance group chairman Mukesh Ambani. a retailer would have to negotiate all the tricky turns most of the time. To be viable. high-volume. And for that to happen. The big players are optimistic. And if wrong choices are made regarding the location or the formatting of the store. commodity business where profitability gets strained as competition intensifies. and a regulatory system that resembles a patchy quilt more than anything else. the huge investments made in the sector by India Inc would have to be responded to by a corresponding massive surge in footfalls. The catches are many and to make it big. shortage of skilled personnel. Retailing is a low-margin. Between the drawing board and the emerging market realities. There are reasons for his optimism: the country's preponderantly young working population. a lot of links would have to fall in place. In fact. it rose to $620 in 2005). The more visible among these loose ends: vexingly high real estate prices. disposable incomes that are expected to increase at an average 8. the realization dawns that a lot of things can go wrong with India's much-heralded retail revolution. the loosely-knit distribution networks in India's hinterland. .20 Organized retail. and a steadily climbing per capita income (from $460 in 2002. But most analysts are agreed that the Indian retail market could at best support 10 large players with revenues in excess of $2 billion each by 2015. who recently kicked off the first Reliance Fresh outlet in Hyderabad.

that time could be sooner rather than later. . What's more. While some almost certainly are looking to act as silent partners for foreign players. this could exert pressure on other retailers in the country to explore similar collaborative opportunities. As of now. others may be more willing to look at an exit option a few years down the line. Seen as a coup of sorts. besides a franchise agreement for retail. More recently. Already it has 17 stores in Hyderabad alone (the number will go up to 40 by end of the above period). maybe just three or four years down the line. Sunil Bharti Mittal made news when he announced an alliance with the world's biggest retail chain Wal-Mart. industry insiders even say. this clearly means a winnowing out the weaker retail players. for a supply chain and cash-andcarry venture. pointing out that a large number of the new entrants may not be committed to retailing in the long term.21 Given the number of players getting into the fray today. the retail turf is set for some hectic activity. Reliance has drawn up a Rs 25.000-crore (Rs 250 billion) retail plan that would see its outlets dotting 784 cities and small towns by 2010. That's not so surprising.

They plan to have a national presence with 30 stores by March 2008 and double it to 60 by March 2009.22 Laying the Pipeline Between them the likes of Reliance. sourcing and merchandising management. the AV Birla Group. Other players like the Dubai-based Landmark group. UK. the Bhartis. the ITC Group and the Wadias -. are also keen to expand into the grocery segment. with the launch of its Croma store. 000-crore (Rs. retail supply logistics. In their crosshairs.he has announced plans to roll out 225 Big Bazaar stores and hundreds of other outlets in other formats in the next four years. warehousing. Then there are players like the K Raheja group's Shopper's Stop and the Rajan Raheja-controlled Globus that are expanding their reach in the apparel and accessories segments. are a host of retail-related activities such as cold chains. just 1% own computers. Retail icon Kishore Biyani is also stepping on the gas -. All of which are seen as absolutely essential if the front-end retail business is to take off on a meaningful scale across the country.will be sinking in close to Rs 1 lakh crore (Rs 1 trillion) in the business of retail over the next five years. The players have hit the ground running. The company zeroed in on the segment given the findings of an internal study. which revealed that only 0.even as the AV Birla group is on a talent hunt ahead of its Rs. with its Lifestyle and Max branded outlets. 3.50 billion) retail rollouts.and a horde of others -.it has roped in Peter Bracher from Asda Wal-Mart as special adviser for Reliance Fresh stores and Kevin Pleass from Tesco. The Tata group too earlier this year expanded its footprint (beyond the formats rolled out by Group Company Trent of Westside fame) by entering the durables segment. the Godrejs.5% washing machines and 11. the Godrej group.5% of Indians own air conditioners. Century Textiles and Raymond as well as mid- . Reliance is hiring overseas talent to beef up its management capabilities -.7% telephones. Others like ITC (a big player in its own right). with a capital of Rs 400 crore (Rs 4 billion).15. the Mahindras. in a tie-up with Australian retailer Woolworths. to help with store design and construction -. Reports indicate the company is in talks for a tie-up with Carrefour. the Tatas.

The others have chains of comparable sizes and reach. 85 logistics centers and 1.640 stores and wholesale clubs in 14 countries. Bharti is expected to invest Rs 6. globally. Climbing The Greased Pole . Not to mention deployment of cutting-edge technologies that enable real-time inventory tracking and ordering mechanisms. retail is a business involving massive scales and deep pockets.000 crore (Rs 50 billion) in the next few years. To keep their stores stocked with their myriad products. AV Birla Group is looking at pumping in Rs 15. the numbers are not out of the ordinary. has chalked out a plan to roll out about 5. Arkansas.000 crore (Rs 60 billion) in the initial phase. based Wal-Mart -. Thus.000 crore (Rs 150-200 billion) -. Taking a cue from the global leaders (whose eyes are also on India). Similarly. The Bentonville.2 million sq ft. By global scales. for instance. India Inc's retailers are thinking big.23 size players like Vishal Megamart.600 across 13 countries.500 stores of all kinds in 800 cities.000-20.with an initial investment of Rs 5.the big brother of retailers -. Reliance Retail. The group plans to increase its total retail space to 30 million sq ft from the current 3. the global retailers have sophisticated procurement strategies in place that hinge on sourcing products globally based on prices. Biyani's Pantaloon is not far behind.operates 6. and take its turnover to Rs 2. quality and timely delivery. Subhiksha and Sabka Bazaar are busy increasing their footprint.600 farm supply hubs. while its counterpart in Europe (it is based out of UK) Tesco runs 2.500 crore (Rs 25 billion) by June 2010.

This. said his top priority would be real estate acquisition. For instance. will enable the retailer to leverage its first-mover advantage on a pan-India basis. the chairman of Bharti Group. the newly-formed combine is roping in DLF. it could also improve asset utilization of the developments. in Tier-II cities. Pantaloon has signed up with 100 of the 300-odd malls that will be developed over the next three years. Pantaloon has been quick to establish its presence. Hitherto. Baroda and Surat. Kshitij 1. To that end. as some astute retailers have found out. Pantaloon Retail currently has 3.24 Moving up the evolutionary ladder won't be easy for India's retailers.000 sq ft of retail space in these destinations by 2008. within hours of making his deal with Wal-Mart public. At the other end. is understood to have invested in projects in cities like Ahmedabad. Availability of quality retail space will be a key determinant for the growth of the sector. MGF and Ansals to act as partners and developers. spiraling rental costs has most retailers worried already. Pantaloon expects to have nearly 400. most retailers have preferred to go in for long-term leases. With most Indian cities undergoing rapid urbanization. an anchor tenant typically commands a discount of 30-45% on lease rentals and is responsible for attracting footfalls into a mall. Emaar. Not surprisingly then. players like Reliance could set up hypermarkets in their own SEZs to meet the needs of local residents. Such an arrangement could prove to be a win-win solution: while it will ensure quick roll-outs and lower capex. . Sunil Mittal. which has a corpus of $80 million at its disposal. points out PWC. But with real estate prices in most top tier cities hitting the roof in the past two years. where lease rentals are 40-50% lower than those in top tier cities. especially given the large number of potential competitors. The retailer’s real estate fund. Another way out of this problem. Shopper's Stop and McDonald's have been quick to endorse this strategy. is to become an anchor tenant. whether through leasing or buying.2 million sq ft spread across several formats and is expected to have 10 million sq ft of space in the country by 2010. Retail biggies like Pantaloon Retail. lease rental increases are making business unviable for organized retail. Again. According to PWC estimates.

Grapevine has it that soon after the Bharti-Wal-Mart MOU. "India is a fragmented country and an absence of a strong infrastructure and logistics system makes it all the more challenging to reach consumers. Reliance has to worry about Wal-Mart's strength in the make-or-break area of supply-chain management. While Biyani already has a successful retail model in place and Bharti will look to cut corners with some help from Wal-Mart. The fact that the world's biggest retailer will be pitted against them has not been lost on them: now.25 The other determinant of success here is the location -. players like Reliance and the AV Birla group would have to go through a longer learning curve. And many of them like Reliance Retail and Future Group are reported to be investing Rs 6. . scalable supply chains that would facilitate their rapid spread across the country. complete with its own airstrips and a fleet of transport aircraft dedicated to airlifting supplies to key markets.000 square feet hypermarkets) in neighborhoods might do better in India. and we won't know till one fails. All new entrants are planning rapid expansion and such a scale of ramp-up requires scalable processes and systems. So we would witness mistakes being made as Indian retail evolves. Here the neighborhood format has an edge.500-2. respectively.500 square feet (as against 150. the key imperative facing retailers in India is that of creating robust. Reliance Retail's A-team went into a huddle to discuss its response. A vital logistical link in most retailers' plans happens to be the cold chain. on setting up logistics." says NV Sivakumar of PWC.000-crore drive to set up its own logistics. which retailers are yet to develop. This will no doubt be factored into the retailer's own mammoth Rs 6.if the outlet is not easily accessible by a large section of consumers due to distance or other issues. The verdict is still out on that one. Ability to learn from mistakes will be a critical success factor.000 crore and Rs 400-500 crore (Rs 4-5 billion). viability could come in question. Sanwalka of KPMG is of the view that smaller stores of 1. Indeed.

bulk storage.be it merchandising. supply chain management or procurement. leverages IT to track supply chain processes like cross-docking very effectively.stock availability -. Where. for instance. Similarly. There are other areas that retailers would have to master -. says KPMG. trend forecasting to minimize inventory levels -. Early entrants such as Shopper's Stop and RPG Group are acutely aware of this truth: both took years to bring their supply-chain models to the present efficiency levels. Overhauling this part of the supply chain will be the key to the success of any retail venture in food and groceries segment. most Indian retailers range between four and 10. Tesco requires lean production techniques of its suppliers and has high-reliability delivery systems in place such as 'milk-runs'. The fact is that most retailers in India still don't have a stronghold on operations -. One way to measure efficient operations is the inventory turns ratio. Most analysts agree that retailers would have put in place global operational metrics. A comparison of the US and India is revealing. Foreign retailers have shown that managing operations innovatively can provide a significant competitive advantage to retailers.26 Another big player in the segment will be the Bharti Group.such as reaping economies in procurement and transportation. Wal-Mart. while the players can build on the experiences of industry leaders in other markets while developing their supply chain. their Indian counterparts cut a rather poor figure at 5-15%. the wastage levels for perishables are as high as 40% because of a large number of intermediaries as well as loss during transportation as well as through lack of storage. Even a player . The other key metric -. Currently in India. the Indian market may require them to improvise frequently. the retail sector has an average inventory turns ratio of about 18 (some retailers like 7-Eleven score over 50).is telling too: Where global retailers achieve more than 95% availability of all stock-keeping units on the retail shelves. in the US.before they can truly claim to have arrived. Clearly.

The biggest challenge for us and. Also. Executive Director. Lifestyle International. Analysts agree that the manpower shortage will get acute as retail spreads beyond the metros.27 like the Dubai-based Landmark Group -. retailers would have set aside increasing amounts as IT spend. As systems grow in size and complexity. where it had to revise its strategy. The challenge posed by the global retailers is clearly formidable. and are projected to close fiscal 2006-07 with a sales turnover of Rs 500 crore.which has been operating in India for eight years now -. Wal-Mart's track record in markets such as South Korea and Germany has been nothing to write home about. there's a yawning gap between the Indian retailers and those in the West. Besides. The group. plans to open 45 more stores at a cost of Rs 450 crore (Rs 4. for that matter. are banking on for growth. Scalability is what the likes of Kabir Lumba. even the world's largest retailers have slipped when it comes to the emerging markets -. According to a recent survey conducted among the country's top retailers by KPMG. The other big issue for retailers is people. Retail Technology: The Domestic Scenario . unexpected problems.50 billion) over three years. Lifestyle's stores attract 40. But local retailers' more intimate understanding of their customer base will help them survive.Wal-Mart was forced to rework its model in Mexico and a similar thing happened to Carrefour in China.insists it still needs to bring their ERP solution system up to speed. which currently runs 12 stores. when it comes to technology adoption and usage. retailers in India are still to take to bar coding. while retailers like Wal-Mart and Metro have started using RFID technology (offering high inventory visibility). Others may face new. any retailer will be getting trained personnel. Again.000 customers every day.

has been the fast-paced transition from physical. On the usage of payment cards.25 billion) in 2004. 676 crore (USD 2. Electronic payments can change the way we shop.4 crore (USD 15.9. the way we conduct business. paper-based exchange of value to a virtual electronic payment mode. On a macro socio-economic level. EFT too has grown from Rs. today we find various payment systems functioning – ranging from paper-based systems where the instruments are physically exchanged and settlements worked out manually. one of the major technological developments in recent year. ECS volumes have picked up from a base of Rs.67 million) in 1999 to Rs. Both Electronic Clearing System (ECS) and Electronic Funds Transfer (EFT) have grown rapidly over the past six years. the way we pay our bills.15. the NCAER-Visa study notes that the barely two-decadeold system has grown from 3 million credit cards in 1998 to an estimated 44 million plus . 711 crore over the same period.67. the way we travel. change the way businesses function. the way we bank and the way we live.6 crore to Rs. stimulate economic growth and bring about social change. Though the process started off in the early 1990s when automation was first applied to paper based clearing activities. to the most sophisticated electronic fund transfer system which is fully secure and settles transactions on a gross real time basis. electronic payments can act as a tool of national empowerment. The full potential of retail electronic payment has not yet been explored or exploited in India. that is impacting retail in a big way.28 In India.0.

the usage is mostly confined to ATM cash withdrawals (80 per cent) and the transition to bill payment and shopping has just started picking up. but the relatively complicated back-end supply chain information systems and underlying technologies are yet in the process of being established. change in the equilibrium with manufacturers. The future of Indian retail seems very bright. especially with Government showing intension to open up the market to foreign companies with loads of expertise and resources. cost. Things are moving in the right . giving a CAGR figure of 55 per cent. Cisco Systems (India & SAARC). “The Indian retail sector is witnessing tremendous growth and with the advent of international players such as Wal-Mart and Tesco on the cards. constituting barely three per cent of the overall retail segment. The traditional retailers will always continue to exist but organized retailers are working towards revamping their business to obtain strategic advantages at various levels – market. quality. Big Bazaar who have been early adopters of cutting-edge networking technologies and who are in fact driving the growth of the country's organized retail market. variety. knowledge and customer. Malls are coming up very fast and demand for branded products is building up.” says Jangoo Dalal. discounts and advanced systems and technology in the back-end. Pantaloons. the adoption of technology will be a crucial factor in the success of domestic retail players. Most organized players have managed to put the front ends in place.Enterprise. lifestyle retailers are doing so through their “affinity clubs” and “reward clubs”. shopping experience.29 credit and debit cards in 2004. senior vice-president. and a thorough understanding of the consumer behavior. Grocery retailers such as Food World and Food Bazaar have started tracking consumer purchases through CRM and co-branded cards. and adds: “Today we have a number of established domestic retail giants such as Shoppers' Stop. Debit and credit card transaction volumes also increased from USD 1 billion in 1998 to USD 23 billion in 2004. However. the ground seems all set for the organized sector to come up in a big way. Organized retailing itself is at a nascent stage in India. which is fuelling tremendous growth in the organized sector. With differentiating strategies like value for money.

The company has already decided to use RFID (radio frequency identification) technology for its warehouses and stores. WLS is has adopted an ERP system called MOVEX which integrates the data for the entire organization and connects each and every function. It is believed that this will help the company to save lot of time and very fewer chances of errors will remain. Westside. . It helps in collating the data for the organization and makes it available for all the functions of the organization. Ebony Retail have also made extensive use of technology in the store operations.30 direction and I feel organized retailing has the potential to grow at 100 per cent in a few years. At the store end. India's leading retail chains Shoppers' Stop Ltd and Pantaloon Retail (I) Ltd have been among the early adopters of sophisticated technology platforms in their enterprises. Globus. Other prominent players like Lifestyle. software called RSF (retail store front) is used.

ITC aspires to build a dominant presence in the apparel market through a robust portfolio of offerings. when you're relaxed and while you party. customer facilitation and clearly differentiated product presentation. New Delhi in July 2000. The use of space is refreshing. ITC has also established John Players as a brand that offers a complete fashion wardrobe to the youth of today. ITC's Wills Lifestyle believes in the philosophy of 'Enjoying the Change' . and shop in a relaxed and pleasing atmosphere.at work.31 COMPANY PROFILE COMPANY BACKGROUND Over the last five years. At the Images Fashion Awards 2001 & 2003. Beginning with its initial offering of Wills Sport relaxed wear from the first store at South Extension. With a distinctive presence across segments at the premium end. thereby creating a splendid backdrop for the premium offerings. . reflecting the most contemporary trends in store design. Every store offers an international retailing ambience with the extensive use of glass. This season. steel and granite.the change that comes through actively exploring one's own multifaceted ness and stretching one's limits. which is reflected even in the spacious changing rooms. customers can browse at leisure. it has expanded its basket of offerings to the premium consumer with Wills Classic formal wear. ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. At Wills Lifestyle. Wills Lifestyle has been established as a chain of exclusive specialty stores providing the Indian consumer a truly 'International Shopping Experience' through world-class ambience. With its brands. Wills Lifestyle presents a complete fashion wardrobe that complements every facet of your lifestyle . Wills Clublife evening wear and a tempting range of Designer accessories that complete the Look. Wills Lifestyle was declared ‘The Most Admired Exclusive Brand Retail Chain of the Year’. Our stores have established themselves as preferred shopping destinations in the prime shopping districts across the country.

at Images Fashion Awards 2002. At the Images Fashion Awards 2001. it has become the vibrant face of contemporary fashion. It is a meticulously crafted range that is a fitting tribute to the new age leader. This season. Elegant accessories make the look irresistible. who inspire innovation and enterprise. -Wills Sport It constitutes of fashionable relaxed wear for men and women.Wills Clublife Having established a distinctive presence in the premium apparel segment in a short span of time with Wills Sport premium relaxed wear and Wills Classic new age work wear. This season.32 THE BRAND “WILLS LIFESTYLE” The brand wills lifestyle constitutes of 3 sub brands. Wills Classic work wear is positioned as the brand for new age leaders. . Wills Sport presents a story of charming attraction. providing the premium consumer a distinct product offering and a unique brand positioning. Breezy fabrics meet the most contemporary trends. The brand is uniquely . thereby strengthening its portfolio in the premium segment. Wills Sport was declared ‘The Most Admired Women's wear Brand of the Year'. Wills Sport was declared ‘The Most Admired Brand Launch of the Year'. Elegant layering and accessories play up the magic. the detailing is exquisite. Featuring luxurious fabrics crafted to perfection with the most contemporary styling. Wills Classic It constitutes of work wear & was launched in November 2002. Over twelve seasons. Meticulously crafted from luxurious fabrics. Wills Lifestyle launched Wills Clublife in May 2003 in the growing evening wear segment. Following this. Wills Classic presents a story of sophistication. breaking the shackles of hierarchy and domination.

This season a wider choice of accessories will be offered across ties. This season. belts. . Wills Clublife presents a story of magical allure. eyewear and shoes. cuff links. With the introduction of premium formal and relaxed jackets in the range. Wills Lifestyle will continue to offer the definitive look of the season. Premium range of apparel is complimented with a tempting choice of fashion accessories. socks. wallets. stoles. hand bags. scarves. caps.33 positioned to complement the glittering evening life of premium consumers perfectly.

SEC A1+. The target consumers for WILLS LIFESTYLE are people who belong to socio economic class of A1+ and belong to the age group of 25 – 44. The X axis plots the degree of fashion for consumers and Y axis plots weather the consumer is externally driven or internally driven. Externally driven consumer is the one who responds to the changing fashion and one who keeps the track of fashion at international level.34 KEY CONSUMER SEGMENTS Ext rn lly d n e a rive Psychographic Segmentation Aspirin Fo e g llow r Fla shy Lo o Fa io w n sh n Con nt fide Tre se e nd tt r Targetd Sophist te Segments for ica Arrive d WLS H ho Fa io ig n sh n Conse tive rva Fre Bird e In e a d n t rn lly rive Key Demographics -. as shown in the above graph the consumers are divided on the basis of four parameters. 25-44 years The success mantra for any brand is that it should be able to attract its target consumer group and this is possible only when the target consumers will be able to identify with the brand. To achieve this objective it becomes imperative for a company to understand and identify its target consumer group. On the other hand an internally driven consumer is the one to who fashion is not much of a consideration and he wears what he feel comfortable in. They are highly . As shown in the graph the target group for WLS are consumers who are high on fashion but at the same time not very flashy.

35 sophisticated and understand fashion. They are confident and have arrived at some position in there life. . They are the elite part of the society.

As a matter of fact WLS was one of the first brands to come up with its own exclusive brand outlets in the country with a totally new international feel. This strategy helped them in achieving the premium image that they wanted to establish in the market and build a strong and loyal customer base. accessories. The company does not believe in external branding of its products to maintain the premium ness of the product and develop an aura of mystery around the product as against its .36 BRAND POSITIONING A Complete Lifestyle Wardrobe Wills Classic Work wear Wills Signature Special occasion wear Wills Sport Relaxed Wear Essenza di Wills Fragrances. office wear. Arrow etc are struggling hard to achieve this kind of imagery. It concentrated on providing a world class shopping experience to its customers. designer wear and body care products etc. Now it’s the need of the hour and every brand has its own EBO following WLS. Whereas the brands in direct competition like Allen Solly. Louise phillip. Bath & Body care Wills Clublife Evening Wear Lifestyle accessories WLS offers a complete wardrobe to its consumers. The imagery created by the brand is of a couple brand which offers a varied range of products like work wear. evening wear.

Functional Benefit: the functional benefit is that WLS offers a complete wardrobe solution with latest and most fashionable clothes. POINT OF DIFFERENCE In this extreme face of competition it becomes imperative for a brand to differentiate itself with its competitors and offer something special to its consumers. The target group of WLS is a very sophisticated lot and does not like to show off as its personality speaks for itself. Emotional Benefit: WLS has established and promoted itself as a sensuous couple brand. . With so many service providers in the industry the consumer is bound to get confused and at that stage he will choose the brand which will give him some thing different and special.37 competitor brands. The emotional benefit of wearing WLS is that it enhances one’s charismatic appeal and makes the person look alluring to his/her partner. At WLS the following are the functional & emotional benefits that we extend to our consumers. Desired Consumer Response: WLS is Lifestyle brand that enhances one’s charismatic appeal and makes them alluring to their partner by bringing them the latest in fashion.

According to this chart competitors like ALLEN SOLLY AND LOUIS PHILLIP etc much lower in fashion quotient but are charging price equivalent to WLS. This analysis shows that wills as a brands offers higher value for money than its competitors in spite being a premium brand and hence adding value to its consumers. Therefore WLS is strongly established as a premium fashion brand for both men and women. .38 PRICE & PRODUCT POSITIONING Price & Product Positioning Hug o B oss M ang o Esprit Color P lu s Allen Soll y W I LLS Louis P h ilippe Van Heu sen P rici ng UCB P ark Avenue P arx I R Low Others Fashi on Qu otient High  Wills strongly established as a premium fashion brand for men & women The above table shows that among its competitors WLS is better on fashion quotient But at same price points.

39 BUILDING A STRONG BRAND . Understanding the wardrobe profiles of the consumers is also considered an imperative factor. Under this program the consumers are asked to fill a VOC form. This practice is regularly followed at all WLS stores.WLS STRATEGY -Establishing Superior Consumer Understanding At WLS it’s believed that to build a strong consumer understanding the company needs to understand the lifestyle needs of its target group of consumers. evening. This program helps the brand to improve its performance. Recording consumer feedback is given utmost important and is systematically implemented by the company. This way the company understands the need of the consumers and comes up with products to satisfy their needs. This is considered very essential and is done through a VOC (voice of consumer) program. . With the help of such findings company can come up with clothes suited for various occasions such as formal. Another important step taken by the company to build the brand is that it takes feedback from its consumers on a regular basis. quality and build a strong consumer base. For example – WLS came up with a range of active wear when it realized that people are becoming health conscious. party etc and thus satisfy the needs of the consumer in the best possible manner. This is because it keeps a regular check of brand health in the mind of the consumer and the company plans its next step accordingly.

on ground events. As shown in the diagram activities like direct marketing. web marketing. wills India fashion week designer line. loyalty program.club wills. .40 Creating Brand Buzz Powering the brand . This kind of marketing technique makes the brand vibrant and keeps it alive in the minds of the consumer. high media visibility. e-commerce.Lifestyle Marketing High PR & Buzz On Ground Events Direct marketing WIFW designer line Web Marketing E-Commerce High Media visibility Loyalty Programme Club Wills Instore Marketing Building a strong Fashion & Lifestyle Brand through 360 degree Marketing Actions A brand buzz is created using a 360 degree marketing actions. The high visibility and the buzz created around the brand makes it stand out among its target group of consumers and increase the aspiration level of the consumers for the brand. in store marketing. high PR & BUZZ create a buzz around the brand and make it a brand which is talked about.

The idea behind such a policy is to exhibit immense trust in the consumer and it shows the confidence of the company on their product.41 Superior Retail Experience Wills lifestyle is one of the prime movers in providing world class retail experience to its consumers. WLS also believes in this and therefore it runs a program called CLUB WILLS. This way a strong loyal customer base is maintained for the brand. This policy tells that the brand is customer centric & sensitive. The company believes in selling experience to its customers so that they come back to the brand and maintain long term association with the brand. The growing competition makes it imperative to treat its customers in a special way and provide them something beyond their expectations. - Building Long term customer relationships Making a new customer is more expensive than retaining an old one. Club wills is a loyalty program for the loyal customers. In the current scenario most of the companies like Madhura garment. Through this program loyal customers are identified and special benefits are extended to them. .The company follows “No questions asked return policy” which is unmatched in the industry. Such a policy brings the consumer closer to the company and turns him into a loyal company as the consumer feels that he has bought a product of high quality and feels special and cared for. As mentioned before the brand is concentrating on the shopping experience of the consumer and this program helps in delighting the consumer. It was one of the first brands to open its own exclusive outlets in the country with world class infrastructure. WLS believes in keeping the consumer first and delivers the promise of quality & best product to the consumer . Arvind mills etc are coming up with good stores and are concentrating on the experiential shopping and thus following the footsteps of wills lifestyle. Club wills program helps in achieving this and differentiates the brand with other brands in the market. According to this policy a consumer can return and exchange a cloth anytime from any of the wills outlet and no questions will be asked from the consumer.

Most loyal consumers visit us every 2 months. In fact top 15% consumers account for 50% of sales. WILLS LIFESTYLE INDIA FASHION WEEK . The brand has developed a large consumer base of approximately more than 6 lakh. It has also resulted into high walk ins (2mn people walk into WLS stores per year).42 This program has helped us in catching up with the largest brand in the segment.brand has developed a strong loyal base of consumers resulting in high frequency of visit.

The designer has created three unique lines of jackets for Wills Lifestyle. Wills Lifestyle has introduced the latest edition of Wills Lifestyle India Fashion Week Line. Wills Lifestyle offers a complete lifestyle wardrobe for the premium consumer. With linen shirt dresses and tunics in shades of pink. Wills Lifestyle to focus on designer wear . Also floral cutworks and attractive patchwork detailing add feminine vibrancy. Rajesh Pratap Singh has created a range that is aesthetically appealing and can be worn on formal as well as informal occasions and the range. The collection is available at Wills Lifestyle stores across the country. incorporating the latest fashion trends and fashion accessories for both men and women. ITC's Wills Lifestyle has been established as a vibrant fashion brand for the premium consumer. the range exudes freshness and elegance. the colors are neutral with a dash of melon and pink adding zing to the collection. resplendent in linen. The women's wear collection features exquisite ensembles crafted from fabrics such as linen. neutral colors and black. whereas a glittering touch of glamour through georgette skirts with rich silken lining and arresting evening gowns with sequined work complete the range. Rajesh Pratap Singh has created a collection of shirts and jackets for all occasions using both yarn dyed pure linen and light weight chambray linen for the men's line and also comprises hand stitched embroidered shirts and elegant linen popovers.43 A vibrant fashion brand for the premium consumer. The Wills Lifestyle Rajesh Pratap Line 2007 range is priced between Rs 1795-5995 for men and Rs 1495-3995 for women. beige. white and beige. With minimalist styling. silk and georgette. However. silk and georgette has been crafted in white.

" he added. According to Mr Chand.44 Encouraged by the success of its first edition of `Fashion Week' line. the brand recently announced an initiative — The Debut — to recognize India's promising young talent in the field through showcasing their creations. leveraging its association with Fashion Week. Lifestyle is set to expand . Wills Lifestyle would promote young talent in the fashion industry. but also from tier-II cities such as Hyderabad. who created the grand finale collection for Wills Lifestyle India Fashion Week in August-September 2006. which. "Every season. Talking on expanding brand presence. almost 50 per cent of designer wear purchases at Wills Lifestyle stores have been by those who visit the store for the first time. women’s wear contributes close to 35 per cent of our sales. In fact. partnering with Wills Lifestyle is a win-win proposition. created by Rahul Khanna and Monisha Jaising. both for men and women. "The segment accounts for 5 to 6 per cent of sales. were well received. "It's good for the designers too. Their creations now have access to wider audience through our stores. according to Mr. by April our stores would have exclusive signature lines from Rajesh Pratap Singh and Manish Malhotra. he said. On whether there is a good demand for women’s wear. For them. was a big hit and contributed almost 15 per cent of their total sales. the lifestyle brand Wills Lifestyle plans to expand the initiative and is set to launch more such designer wear. So. Wills Lifestyle recently launched men's grooming products such as perfume. Chand. Ludhiana and Chandigarh. Pune. shaving cream and aftershave. he added. According to Mr Chand. the brand has signed on fashion designer Rajesh Pratap Singh to create the collection for the Grand Finale (scheduled for March 25) on the theme `Deeper Love'. Business Line the `Fashion Week' line. Encouraging response The encouraging response is not just from metros. on an annual basis. For the ensuing Wills Lifestyle India Fashion Week. we would offer designer wear from leading designers under the Fashion Week line." Mr Chand said." Also.

taking to the total to 100. Some time ago. apart from its brand outlets. ITC grooming WLS to become global brand ." says Mr. That apart. the company is planning to give a facelift to its stores and has tied up with FRCH. On the company's mid-market brand John Players. Chand. The new collection will be at the premium-end of the brand portfolio. At present.45 its retail horizon by setting up 60 more stores across the country in two years.500 stores across the country. John Players signed on Bollywood star Hrithik Roshan as its brand ambassador and there is a plan to create a special Hrithik Roshan signature line very soon.000 from the present 1. the brand. The new-look stores will be even more exciting and would enable the shopping experience get better. the US-based interior designer. is present in select large-format stores in the shop-in-shop format. he said ITC is also planning to expand the brand's footprint by increasing the number of exclusive outlets to 300 from the present 200 through the franchisee route and number of multi-brand outlets to 2. to give a new look to the shops.

hospitality and countrywide distribution". premium full range wardrobe brand for men and women. JOHN PLAYERS . the first one having been launched in New Delhi on July 15. a strategically planned initiative to leverage the company's "proven competencies in brand building. is the 41st of such spread across 31 cities in the country. according to a company press release. 2000. constituting relaxed wear for all occasions". says the company. The Wills Sport range of apparel. The launch of the New Delhi store also marked the launch of ITC's Lifestyle Retailing Business Division.46 In fulfilling this vision. is sought to be established as "an international quality. ITC aims to make a major contribution to the fiber-to-fashion value chain in India to enhance international competitiveness. The store.

vibrancy and playfulness best personify the core attributes of the brand as its ambassador. with his innate style. This foray into the youth fashion segment leverages ITC's proven competencies in building long-term trade partnerships and establishing omnipresent brand availability. The brand is available across the country through a nation-wide network of exclusive stores and over 1500 multi-brand outlets. an exciting mix of colors.47 ITC launched John Players in December 2002 to broad-base the array of branded apparel that the company offers and further strengthen its robust branded garment portfolio. Superstar and Youth Icon. Denims and Outer wear incorporating the most contemporary trends. John Players offers a complete and vibrant wardrobe of Casuals. Hrithik Roshan. Work wear. Party. trendy textures and comfortable fits. playful styling. THE FUTURE .

which it recently kicked off with the Wills Sport brand of relaxed apparel. Like ITC's lifestyle retail business. That's because puffing cigarettes is de rigueur here in the heart of India's largest cigarette maker. Bodapati Rama Rao. where it has just tip-toed in with a couple of soft launches like that of the canned Dal Bukhara. is just one of the dozen-odd projects that are in the incubation stage at ITC. in sweltering Tillapudi village. Yet. ITC is leveraging competencies from its existing businesses-the most notable is the tobacco business' distribution-expertise-to tap new opportunities. many of them still in the nascent stage. Confectionery. that Chairman Deveshwar seems excited about. ITC's imposing corporate headquarters in Chowringhee. Kolkata. like the exotically named three. a 45-year-old aqua farmer. and the upscale ready-to-eat packaged foods business. ITC wants to change that proportion and generate as much as 40 per cent of its sales from nontobacco diversifications. He's not the only one. 25 km from the eastern coast. In consultant-speak. where more than 80 per cent of the company's sales come from cigarettes and tobacco. Many of those will be brand new businesses. these diversifications will add Rs 2. Blending diverse skills and leveraging its distribution muscle. In the next five to seven years.000 crore to ITC's top line by 2006. An inside account of the silent revolution. But that won't last. used to think a computer at home would attract tax officials as it would lend an air of affluence that a . ITC's Lifestyle Retailing is poised to grow and build a dominant presence in the country's fashion industry. About 800 km away from Virginia House's throwback-to-the-Raj ambience. like the group's international business and its infotech venture. the Expressions range of greeting card and gifts business.48 Having built a powerful brand portfolio that is making waves across the country. But many others contributing to the non-tobacco revenues are old businesses-some re-purposed beyond recognition. it's the clutch of new businesses. If all goes well. and others completely turned around and revitalized like the paper and paperboards business. the tobacco giant is unleashing a welter of new businesses. Ashtrays are ubiquitous inside the pristine white Virginia House.

Today.000 kiosks to cover 100. 97 billion sticks cigarette market. ITC has been sacrificing volumes over margins to drive profits. soya.com for coffee growers in Karnataka in December 2000. in terms of volume. gross income .000 farmers and cover over 250. there is the aspect of deploying cash that the company generates. and coffee domains. ''The aim is to help enhance farm productivity. There's more. aquachoupal.com launched for soya farmers in Madhya Pradesh in June 2000. improve farm-gate price realization and to cut transaction costs. and plantersnet.com is one of the three web-based initiatives (e-choupals in company-speak) that ITC's international business division has launched as part of its strategy to vertically integrate its sourcing operations. Currently. volumes have been stagnant in recent years-they declined in the last three years. Apart from the aquachoupal. In fact. launched in February 2001. The choupals act as facilitators for inputs to farmers-in the aqua. of the Rs 11. explains Sivakumar. An Imperfect Smoke The rationale for ITC's latest burst of diversifications is simple. which cater to 10. is to also use this network as a distribution channel for other products.000 farmers. an inevitable shift of consumers away from the smoking habit is bound to take its toll. The idea. a pilot project to sell LPG cylinders using the network is already on. and 'price patterns'. there is the soyachoupal. it plans to set up 3. Plus. International Business Division.000 hectares of land. in the three states.'' says S. By 2003. ITC. chief executive. And although thus far. Although ITC has a 70 per cent share. 'exporters'. Rama Rao refers to ITC as the talli (mother) company and is at ease with the mouse and keyboard and his fluent Telugu is meshed with words like 'market trends'. Locals say it took a bit of explaining of the e-choupal concept before he saw the benefits of information flow. Flustered? Well. ITC has set up 235 internet kiosks (each managed by a pratinidhi or sanchalak like Rama Rao).49 farmer could ill-afford. Sivakumar.000-crore. In 2000-01. especially when he would be named a pratinidhi or lead farmer by ITC in his area.

ITC was also accused by the enforcement department of violating FERA through IBD. Chugh unfurled an array of diversifications. BAT insisted that ITC stick to BAT's core businesses. the company is sitting on reserves and surplus to the tune of Rs 3. Estimated cash flow for the year was over Rs 1.816 crore from Rs 8. The board was directly responsible for executive decisions. Of course. its financial services business never really took off and ITC had to finally sell it off to ICICI. For instance. the UK-based tobacco major that has a 33 per cent stake in ITC. ITC's international business division (IBD) was embroiled in an unseemly scam because one of its partners. On another front. Thus. both moves prompted by the macro-economic environment: the government's encouragement to ventures that would earn foreign exchange (hotels fitted that objective) and its stress on self-reliance and import substitution (paper and paperboards fitted that). ITC added to its repertoire financial services and retailing of branded edible oils.069 crore. and net profits jumped from Rs 792 crore to Rs 1.'' says Finance Director.006 crore.150 crore. ''We have a strong balance sheet and will very soon be debt-free. one for paper and printing. In the 1990s. and paper and paperboards (which is run by subsidiary ITC Bhadrachalam) suffered from lack of attention. including power and infrastructure. partly owing to strong resistance from BAT. The fall-out was disastrous. ITC's craze for diversification got even stronger. they never took off. This led to serious turf battles. In the mid-1990s. cash-rich companies like ITC turn to diversification. the Chitalias. In the 1970s. In the 1980s. K. BAT's financial services arm. it diversified into hotels and the manufacture of paper and paperboards. one in charge of finance. Partly the problem lay in way the group's management was structured. another in charge of financial services. That apart. Typically. fell out with the company and sued it.300 crore. which were tobacco and financial services. Former chairman K. with the latter ramping up efforts to get greater control of ITC. So has ITC.L. since tobacco was the main . This was also a period marked by a battle between the local management and BAT. there was a director in charge of tobacco. promising businesses like hotels.50 rose to Rs 8. ITC Classic set up a financial services company with Peregrine of Hong Kong and a mutual fund with Thread needle. Meanwhile. and one for IBD. Vaidyanath.

headed by a chief executive-led divisional management committee. Adds Anand Nayak. and it became the strategic management arm of the company and not the executive one. returned to ITC as Chairmandesignate (he assumed charge in 1996). The number of executive directors was reduced from eight to four (one-third of the board's total size). when Deveshwar. ''We developed a decentralized structure with distributed leadership.'' A Fresh New Blend But the big change has been the way in which ITC now looks at each of its diversifications. Executive decisions were left to the various business divisions.51 earner the director in charge obviously wielded a fair clout. each one of them is based on a blend of skills that the company already has. . As it happened. but also restructured the company. Executive Vice-President (Corporate HR): ''Our new structure balances the need for separateness with that for integration. Deveshwar not only managed to stave off BAT's takeover attempt.'' says Deveshwar. he was also closest to BAT. Each of them is carefully nurtured and incubated before being launched. a long-time ITC veteran who had been handpicked in 1991 by the Government of India to head Air India. Things changed in 1994. And more important.

ITC is a stickler for doing the right things. ''It's possibly the fastest roll-out anywhere. he was faced with problems on many fronts. But it has been a long haul. the company has blended three of its existing strengths: the brand equity of Wills. the just-launched greeting cards and gifts business. ITC's distribution network of 2. whose chambers have a pride of place for a bright display rack of the new Expressions range of cards.52 Deveshwar likes to call the new ITC ''a holding company with a venture capitalist mindset''.5 million (1 million directly and 1. with whom the company enjoys long-standing relationships. Almost the entire board with the exception of Deveshwar and B. The roll-out was very quick on this account. The recent web-initiatives launched by the company's international business division too draw on existing strengths: the group's infotech subsidiary ITC Infotech structured the entire virtual vertical integration model and metamarkets for inputs like pesticides. And lack of focus on existing businesses like hotels and paperboards was taking its toll. that the farmers in different states can use. fertilizers. sales personnel at all the outlets will be trained by ITC Hotels. and. When Deveshwar took charge in 1994.5 million indirectly) cigarette retailers. etc. Although the group's core business-cigarettes and tobacco-were doing fine. morale through the ranks was low. ''We had to . which ITC expects to balloon to a Rs 250 crore business in the next five years. and services skills from the group's hotels business. ''There is a bio-diversity of skills in ITC. Says Chand Das. And like all good VCs.'' Das took just six months from conception to coverage in 74 markets.'' gushes Chairman Deveshwar.. where ITC has kicked off with the Wills Sport brand of top-end relaxed apparel. ''We don't have to struggle with issues of processing and printing. Likewise.' ITC's lifestyle retailing business division is an example of that alchemy. In that business. Chief Executive of the fledgling division. 'and by blending the capabilities that exist in different parts of the group. we want to look at new opportunities. Mitter were taken into custody by the enforcement authorities and the non-executive directors had questioned the transparency of ITC's operations. Here's how: the majority of the Wills Sport outlets (35 will roll out across the country by August) will be franchised to ITC's wholesalers. draws on ITC Bhadrachalam's skills of high quality paper and board manufacture as well as ITC's packaging and printing business.

'' says Deveshwar. .53 take these core businesses up to world-class standards and demonstrate our commitment to them.

of Respondents 100 0 No 0% Yes 100% . Do you aware of Wills Lifestyle? Attributes Yes No No.54 DATA ANALYSIS AND FINDINGS 1.

Many of them don’t have a specific pattern of visit making it occasional. . of Respondents 8 15 34 23 25 40 35 30 25 20 15 10 5 0 Once in 2 months Once a month Twice a month Once a week or more Occasionally 8 15 25 23 34 From the data analysis it is evident that visit to shopping malls is not apart of a routine unlike what we find in the west where consumers shop more often. There are very few who visit once in a week or more. This could be attributed to the lack of spending power among the consumers and also a lack of awareness among them about the efficacies of a big shopping mall.55 2. How frequently do you visit? Attributes Once in 2 months Once a month Twice a month Once a week or more Occasionally No.

Respondents have pointed out that novelty of products is an extremely important factor that influences their decision to visit a shopping mall or not. of Respondents 7 46 22 20 5 50 45 40 35 30 25 20 15 10 5 0 Shop display 7 46 22 20 5 Novelty of products Special discount deal Family insistence Any other Novelty has become extremely important these days especially for any service unit in which human touch is of crucial importance.56 3. What factors influence you to make purchase? Attributes Shop display Novelty of products Special discount deal Family insistence Any other No. Consumers always like to be pampered and it is here the kind of service .

This makes it imperative for the retailers to come out with attractive discount schemes to lure the visitors to their stores.57 provided by the personnel come into picture. If they are able to give personalized service to the customers then retailers are going to succeed in gaining and retaining clientele. . About 22 of the respondents felt that discounts offered by the retailers are an important factor that attracts them to the stores.

of Respondents 10 50 40 Cheaper 10% Same price 40% More expensive 50% .58 4. Do you think that the goods available in Wills Lifestyle are as compared to the market? Attributes Cheaper More expensive Same price No.

3 .Important.Not at all important. 2 – very important. 1 – Most Important) 1 Brand Image Advertisement Discount Location Service Referrals Live entertainment shows Face to face with celebrities 44 25 18 6 20 38 20 31 2 22 34 22 5 20 23 20 18 3 11 15 18 10 10 14 20 14 4 14 10 21 19 30 15 20 7 5 9 16 21 60 20 10 20 30 120 100 80 60 40 20 0 Brand Image Advertisement Discount Location Service Referrals Live entertainment shows Face to face with celebrities .59 5. 4 .Some what important. (5 . Please rate the factors given below that influence your visit to Wills Life style.

.60 6.theses inferences show that customers trust the brand and overall there is a positive attitude towards the brand in the market. What attributes / features do you prefer in Wills Life style? a) Quality b) Designing c) Service Standards d) Variety Quality Designing Service Standards Variety 40 30 20 10 Service Standards 20% Variety 10% Quality 40% Designing 30% 40% customers like the quality of Wills Lifestyle and 30% like designing of the garments.

61 7. of respondents 46 49 5 0 60 49 46 50 40 30 20 10 5 0 Definitely Yes Probably Yes Probably No Definitely No 0 The graph shows that out of 100. Would you recommend Wills Life style to your friends and relatives? Attributes Definitely Yes Probably Yes Probably No Definitely No No. Do you think brand image influence the consumer purchase behavior? . 8. Best form of getting increase in business is making use of the existing customer base to promote the brand. Word of mouth communication between the shoppers and prospective shoppers is the cheapest way to attract customers towards a brand. 49 respondents said that they will probably refer ITC Wills life style for relatives and friends.

all that matters is the resulting favorability.62 Attributes Yes No No. strength and uniqueness of brand associations. favorable. . and No 10% Yes 90% unique associations towards the brand. The definition of customer-based brand equity does not distinguish between the source of brand associations and the manner in which they are formed. of Respondents 90 10 A positive brand image is created by marketing activities that lead to strong.

Every store offers an international retailing ambience with the extensive use of glass. b. thereby creating a splendid backdrop for the premium offerings. It should also concentrate on spreading awareness about its club wills program and the kind of benefits that it extends as it would lead to higher level enrollment which in turn would lead to wider customer base. After identifying the passion areas of an Indian consumer. At Wills Lifestyle. The company has finally understood the Indian market and changed its promotional strategies to suit the nature of Indian market. customers can browse at leisure. and shop in a relaxed and pleasing atmosphere. reflecting the most contemporary trends in store design. which is reflected even in the spacious changing rooms. The brand needs to revamp its stores to retain its prime mover position and to counter competitors like Madhura garments which boast of the brands like Van Huesan. steel and granite. Louise Phillip etc. To increase the awareness of the brand the company should also advertise through electronic media as it will attract lot of new customers which in turn would lead to higher acquisition of the customers. . the main promotional tools used by the company have helped the brand considerably to create a favorable market share for itself. The use of space is refreshing. Currently the brand is advertising through print media and is reaching to its customer base personally through its lifestyle benefits program called the CLUB WILLS. Advertisements and sales promotion.63 CONCLUSION AND RECOMMENDATIONS ITC Wills lifestyle is one of the most recognizable brands in Indian market. Wills lifestyle is one of the first brands in India to come up with its exclusive stores giving an international feel to the brand. the brand has come on the same attitudinal plane as the consumer. But the fact is that the competition has been able to match up to its level as far as the look of the stores is concerned. Better looking stores would also help customers to better identify with the premium ness of the brand and thus would be able to associate better with it. Recommendations a.

64 c. in future. Indian retailers should also understand that the retail experience has become a popular leisure activity and they are vulnerable to any new competition for customers’ entertainment. -By training their personnel so that they deal with the customers efficiently and provide them better services. Indian retailers must build their brands with images that seek to entertain and involve their customers. -By improving on its supply chain management & merchandise allocation. Indian consumers are becoming more and more brand conscious and thus want to flaunt the brand they wear. The brand should concentrate on its internal efficiencies. the supply chain. It is the quality and value of the retail brands that they have sought to establish that will determine the loyalty of the retail shopper in future. -By understanding the taste of Indian consumer and designing the range accordingly. and emerge as the dominant reason for the success of the organized Indian retailer. overshadow all these areas. This can be achieved in following ways: . Successful retailing has always been said to be. . inventory and merchandise management and visual merchandising. Wills lifestyle is the only brand which doesn’t have any logo or symbol on its garments externally. The company should start with external branding as all the competitors in the market. It also acts as an advertising tool and makes the brand presence felt. about getting the nitty-gritty right of merchandising. training and recruitment of high quality personnel and category management.By concentrating on it’s in store operations such as customer service. External branding also acts as a differentiating factor and gives lot of recognition to the brand. Building retail brands that offer value will. d. forecasting.

Lewis.. (2004). Marketing Management. P.com/money/2007/jan/19bspec.H. (2007). McGraw-Hill International (UK) Limited:Singapore.html www. Advertising and Sales Promotion. Prentice Hall of India.thehindubusinessline. & Schindler P. 156 . Advertising and Branding http://www. Tata McGraw Kazmi S. Research Methods For Business Students.rediff. Prentice Hall. Business Research Methods..com/Advertising_and_Branding.R.html Pummy Kaul and Prashant Mahesh. L. Cooper D. Second Edition. ICR. Measuring.indiatodaygroup. 2005. G. Jha M. Satish (2004). England Keller. & Massingham. 2nd education. Kanuk. Second Edition.. (2005). Koshy A. (2005) Consumer behavior..htm .S.com/2007/03/20/stories/2007032005370500.com/btoday/20010621/cover. M. Pg 3.. (2006). Pearson Education Pte. K.com/2006/04/brand-postioningpunchlines.html http://www. Keller K. Kotler P. And Thornhill. Strategic Brand Management: Building.H.itcportal. Product Management. Pearson Education Pte. and Managing Brand Equity. Leslie Lazar. (1999) Essentials of Marketing. Fourth Edition.com/lyfestyle_retailing/lifestyle_retailing. New Delhi Schiffman. New Delhi Lancaster. Leon G. Outlook Business the real story of India's retail boom http://www.aspx Brand positioning & punch lines http://lazith.65 BIBLIOGRAPHY Saunders.blogspot.L.169. A. Excel Books..htm http://www.icrsurvey. New Delhi. London : PrenticeHall International Majumdar R. Second edition. 12th edition. & Batra K.

2 . 4 – very important.Important. Do you think that the goods available in Wills Lifestyle are as compared to the market?  Cheaper  More expensive  Same priced 5.Some what important. 5 – Most Important) . Are you aware of Wills Lifestyle?  Yes  No 2. 3 .Not at all important. (1 . Please rate the factors given below that influence your visit to Wills Life style.66 APPENDEX QUESTIONNAIRE 1. What factors influence you to make purchase?  Shop display  Novelty of product  Special discount deal  Family’s insistence  Any other__________ 4. How frequently do you visit?  Once in two months  Twice a month  Occasionally  Once a month  Once a week or more 3.

67 1 Brand Image Advertisement Discount Display Location Ambience Service Quality Referrals Live entertainment shows Face to face with celebrities Playing arena for kids Membership privilege 6. Would you recommend Wills Life style to your friends and relatives? Attributes Definitely Yes Probably Yes Probably No Definitely No No. of respondents 8. Do you think brand image influence the consumer purchase behavior?  Yes  No . What attributes / features do you prefer in Wills Life style? b) Quality b) Designing c) Service Standards d) Variety 2 3 4 7.

Sign up to vote on this title
UsefulNot useful