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TERM PAPER TITLE:

EMPIRICAL STUDY OF BRAND IMAGE OF ITC WILLS LIFESTYLE

SUBMITTED BY: HARMEET CHAWLA MBA (GEN) SECTION-C ROLL NO: 11

CO-AUTHOR: SHARAN SHARMA MARKETING AREA EXECUTIVE

SUBMITTED TO: Mr. Vivek Singh Tomar

TABLE OF CONTENTS

INTRODUCTION OBJECTIVES OF THE COMPANY INDUSTRY PROFILE COMPANY PROFILE1. 2. BUILDING A STRONG BRAND - WLS STRATEGY WILLS LIFESTYLE INDIA FAHSIONWEEK

DATA ANALYSIS AND FINDINGS CONCLUSION AND RECOMMENDATIONS REFERENCES

Acknowledgement

As a part of partial fulfillment of Marketing Management course in the first semester of MBA 2011-2013 an attempt is being made by me to present this term paper with the help of various sources acknowledged in the bibliography.

I am greatfull to ,Mr. VIVEK SINGH TOMAR ,Faculty AMITY UNIVERSITY (Noida), for extending his untiring support and guidance while preparing the term paper .I would I also express my heartful thanks to my friends for their constant support .

6 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 consumers demands other than simply copying the western retailing formats.

OBJECTIVES OF THE COMPANY

1. 2.

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 Wills Life Style of ITC

3.

What influence does brand image and brand reputation have towards achieving a sustained competitive advantage in the retail industry

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. This organized retail sector is poised for a take off.

India is ranked second in the global retail development index out of 30 by AT Kearney. Figure 1 shows the comparative penetration of organized retail in India. With the organized retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24 billion by 2010.

The share of modern retail is likely to grow from its current 3 per cent to 15-20 percent over the next decade. 85 per cent of organized retailing is taking place in Indias urban areas while 66 per cent of it taking place in Indias 6 main cities alone. The growth is much faster in south India than in northern states. The total retail market in south India is $94 billion and of this organized retail is $8.5 billion.

In southern part of India the organized retail market growth is estimated as 35 per cent per annum. 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.

8 As per Technopark study the sales in the organized sector for food, beverage and tobacco is $195 billion which cover 65 per cent. Sale of personal care product is $15 billion (5 per cent) and apparel at 7 percent around $21 billion.

In coming years Co-brands labels will be more in these products. The paper explores the evolution of this sector of economy. The main theme of enquiry of this paper is what it all means for the Indian society.

9 COMPANY PROFILE

COMPANY BACKGROUND

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

THE BRAND WILLS LIFESTYLE

10 The brand wills lifestyle constitutes of 3 sub brands; -Wills Sport It constitutes of fashionable relaxed wear for men and women. Over twelve seasons, it has become the vibrant face of contemporary fashion. At the Images Fashion Awards 2001, Wills Sport was declared The Most Admired Brand Launch of the Year'. Following this, Wills Sport was declared The Most Admired Women's wear Brand of the Year', at Images Fashion Awards 2002. This season, Wills Sport presents a story of charming attraction. Breezy fabrics meet the most contemporary trends. Elegant layering and accessories play up the magic.

- Wills Classic It constitutes of work wear & was launched in November 2002, providing the premium consumer a distinct product offering and a unique brand positioning. Featuring luxurious fabrics crafted to perfection with the most contemporary styling, Wills Classic work wear is positioned as the brand for new age leaders, who inspire innovation and enterprise, breaking the shackles of hierarchy and domination. It is a meticulously crafted range that is a fitting tribute to the new age leader. This season, Wills Classic presents a story of sophistication. Meticulously crafted from luxurious fabrics, the detailing is exquisite. Elegant accessories make the look irresistible.

1.

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, Wills Lifestyle launched Wills Clublife in May 2003 in the growing evening wear segment, thereby strengthening its portfolio in the premium segment.

The brand is uniquely positioned to complement the glittering evening life of premium consumers perfectly. This season, Wills Clublife presents a story of magical allure.

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Premium range of apparel is complimented with a tempting choice of fashion accessories. This season a wider choice of accessories will be offered across ties, cuff links, socks, caps, scarves, stoles, hand bags, wallets, belts, eyewear and shoes.

With the introduction of premium formal and relaxed jackets in the range, Wills Lifestyle will continue to offer the definitive look of the season.

KEY CONSUMER SEGMENTS

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Externally driven

Psychographic Segmentation
Aspiring Follower

Flashy

Low on Fashion

Confident Trendsetter Target SophisticatedSegments for Arrived WLS High on Fashion Conservative

Free Bird

Internally driven Key Demographics -- SEC A1+, 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. 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. as shown in the above graph the consumers are divided on the basis of four parameters. 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. 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. 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. They are highly sophisticated and understand fashion. They are confident and have arrived at some position in there life. They are the elite part of the society.

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BRAND POSITIONING

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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, office wear, evening wear, accessories, designer wear and body care products etc. Whereas the brands in direct competition like Allen Solly, Louise phillip, Arrow etc are struggling hard to achieve this kind of imagery. 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. It concentrated on providing a world class shopping experience to its customers. 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. Now its the need of the hour and every brand has its own EBO following WLS. 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 competitor brands. The target group of WLS is a very sophisticated lot and does not like to show off as its personality speaks for itself.

POINT OF DIFFERENCE

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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. 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. At WLS the following are the functionnal & emotional benefits that we extend to our consumers;

Emotional Benefit: WLS has established and promoted itself as a sensuous couple brand. The emotional benefit of wearing WLS is that it enhances ones charismatic appeal and makes the person look alluring to his/her partner.

Functional Benefit: the functional benefit is that WLS offers a complete wardrobe solution with latest and most fashionable clothes.

Desired Consumer Response: WLS is Lifestyle brand that enhances ones charismatic appeal and makes them alluring to their partner by bringing them the latest in fashion.

PRICE & PRODUCT POSITIONING

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Price & Product Positioning

Hugo Boss Mango Esprit Color Plus Allen Solly WILLS

Louis Philippe Van Heusen

Pricing

UCB

Park Avenue Parx

IR Low

Others Fashion Quotient

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. 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. According to this chart competitors like ALLEN SOLLY AND LOUIS PHILLIP etc much lower in fashion quotient but are charging price equivalent to WLS. Therefore WLS is strongly established as a premium fashion brand for both men and women.

BUILDING A STRONG BRAND - WILLS STRATEGY

-Establishing Superior Consumer Understanding At WLS its believed that to build a strong consumer understanding the company needs to understand the lifestyle needs of its target group of consumers. This way the company understands the need of

17 the consumers and comes up with products to satisfy their needs. For example WLS came up with a range of active wear when it realized that people are becoming health conscious. Understanding the wardrobe profiles of the consumers is also considered an imperative factor. With the help of such findings company can come up with clothes suited for various occasions such as formal, evening, party etc and thus satisfy the needs of the consumer in the best possible manner. Another important step taken by the company to build the brand is that it takes feedback from its consumers on a regular basis. This is considered very essential and is done through a VOC (voice of consumer) program. This program helps the brand to improve its performance, quality and build a strong consumer base. Under this program the consumers are asked to fill a VOC form. This practice is regularly followed at all WLS stores. Recording consumer feedback is given utmost important and is systematically implemented by the company. 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.

1.

Creating Brand Buzz

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Powering the brand - 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. As shown in the diagram activities like direct marketing, wills India fashion week designer line, e-commerce, loyalty program- club wills, in store marketing, high media visibility, web marketing, on ground events, high PR & BUZZ create a buzz around the brand and make it a brand which is talked about. This kind of marketing technique makes the brand vibrant and keeps it alive in the minds of the consumer. 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.

Superior Retail Experience

Wills lifestyle is one of the prime movers in providing world class retail experience to its consumers. It was one of the first brands to open its own exclusive outlets in the country with world class infrastructure.

19 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. In the current scenario most of the companies like Madhura garment, Arvind mills etc are coming up with good stores and are concentrating on the experiential shopping and thus following the footsteps of wills lifestyle. WLS believes in keeping the consumer first and delivers the promise of quality & best product to the consumer .The company follows No questions asked return policy which is unmatched in the industry. 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. 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. 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. This policy tells that the brand is customer centric & sensitive.

2. 3.

Building Long term customer relationships

Making a new customer is more expensive than retaining an old one. WLS also believes in this and therefore it runs a program called CLUB WILLS. Club wills is a loyalty program for the loyal customers. Through this program loyal customers are identified and special benefits are extended to them. This way a strong loyal customer base is maintained for the brand. The growing competition makes it imperative to treat its customers in a special way and provide them something beyond their expectations. Club wills program helps in achieving this and differentiates the brand with other brands in the market. As mentioned before the brand is concentrating on the shopping experience of the consumer and this program helps in delighting the consumer. This program has helped us in catching up with the largest brand in the segment. The brand has developed a large consumer base of approximately more than 6 lakh. It has also resulted into high

20 walk ins (2mn people walk into WLS stores per year).brand has developed a strong loyal base of consumers resulting in high frequency of visit. Most loyal consumers visit us every 2 months. In fact top 15% consumers account for 50% of sales.

WILLS LIFESTYLE INDIA FASHION WEEK

A vibrant fashion brand for the premium consumer, Wills Lifestyle has introduced the latest edition of Wills Lifestyle India Fashion Week Line. With minimalist styling, 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, resplendent in linen, silk and georgette has been crafted in white, beige, neutral colors and black. 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. However, the colors are neutral with a dash of melon and pink adding zing to the collection. The designer has created three unique lines of jackets for Wills Lifestyle. The women's wear collection features exquisite ensembles crafted from fabrics such as linen, silk and georgette. With linen shirt dresses and tunics in shades of pink, white and beige, the range exudes freshness and elegance.

21 Also floral cutworks and attractive patchwork detailing add feminine vibrancy; whereas a glittering touch of glamour through georgette skirts with rich silken lining and arresting evening gowns with sequined work complete the range. The Wills Lifestyle Rajesh Pratap Line 2007 range is priced between Rs 1795-5995 for men and Rs 1495-3995 for women. The collection is available at Wills Lifestyle stores across the country. 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 and fashion accessories for both men and women.

Wills Lifestyle to focus on designer wear Encouraged by the success of its first edition of `Fashion Week' line, the lifestyle brand Wills Lifestyle plans to expand the initiative and is set to launch more such designer wear, both for men and women, on an annual basis. Business Line the `Fashion Week' line, created by Rahul Khanna and Monisha Jaising, was a big hit and contributed almost 15 per cent of their total sales. "Every season, we would offer designer wear from leading designers under the Fashion Week line," Mr Chand said. For the ensuing Wills Lifestyle India Fashion Week, 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'. So, by April our stores would have exclusive signature lines from Rajesh Pratap Singh and Manish Malhotra, who created the grand finale collection for Wills Lifestyle India Fashion Week in AugustSeptember 2006," he added. According to Mr Chand, almost 50 per cent of designer wear purchases at Wills Lifestyle stores have been by those who visit the store for the first time. On whether there is a good demand for womens wear. In fact, womens wear contributes close to 35 per cent of our sales.

Encouraging response The encouraging response is not just from metros, but also from tier-II cities such as Hyderabad, Pune, Ludhiana and Chandigarh, he said. "It's good for the designers too, he added. For them, partnering with Wills Lifestyle is a win-win proposition. Their creations now have access to wider audience through our stores."

22 Also, leveraging its association with Fashion Week, Wills Lifestyle would promote young talent in the fashion industry. According to Mr Chand, the brand recently announced an initiative The Debut to recognize India's promising young talent in the field through showcasing their creations. Wills Lifestyle recently launched men's grooming products such as perfume, shaving cream and aftershave, which, according to Mr. Chand, were well received. "The segment accounts for 5 to 6 per cent of sales. Talking on expanding brand presence, Lifestyle is set to expand its retail horizon by setting up 60 more stores across the country in two years, taking to the total to 100. At present, the brand, apart from its brand outlets, is present in select large-format stores in the shopin-shop format. That apart, the company is planning to give a facelift to its stores and has tied up with FRCH, the US-based interior designer, to give a new look to the shops. The new-look stores will be even more exciting and would enable the shopping experience get better," says Mr. Chand. On the company's mid-market brand John Players, 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 2,000 from the present 1,500 stores across the country. Some time ago, 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. The new collection will be at the premium-end of the brand portfolio.

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ITC grooming WLS to become global brand

In fulfilling this vision, ITC aims to make a major contribution to the fiber-to-fashion value chain in India to enhance international competitiveness.

The store, according to a company press release, is the 41st of such spread across 31 cities in the country, the first one having been launched in New Delhi on July 15, 2000. The launch of the New Delhi store also marked the launch of ITC's Lifestyle Retailing Business Division, a strategically planned initiative to leverage the company's "proven competencies in brand building, hospitality and countrywide distribution".

The Wills Sport range of apparel, says the company, is sought to be established as "an international quality, premium full range wardrobe brand for men and women, constituting relaxed wear for all occasions".

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CONCLUSION AND RECOMMENDATIONS

ITC Wills lifestyle is one of the most recognizable brands in Indian market. Advertisements and sales promotion, the main promotional tools used by the company have helped the brand considerably to create a favorable market share for itself. The company has finally understood the Indian market and changed its promotional strategies to suit the nature of Indian market. After identifying the passion areas of an Indian consumer, the brand has come on the same attitudinal plane as the consumer.
At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and pleasing atmosphere. The use of space is refreshing, which is reflected even in the spacious changing rooms. Every store offers an international retailing ambience with the extensive use of glass, steel and granite, reflecting the most contemporary trends in store design, thereby creating a splendid backdrop for the premium offerings. Recommendations a. Wills lifestyle is one of the first brands in India to come up with its exclusive stores giving an international feel to the brand. 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. 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, Louise Phillip etc. 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.

b. 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. To increase the awareness of the brand the company should also advertise through electronic media as it will attract lot of new customers wh acquisition of the customers. 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.

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c. The company should start with external branding as all the competitors in the market. Wills lifestyle is the only brand which doesnt have any logo or symbol on its garments externally. Indian consumers are becoming more and more brand conscious and thus want to flaunt the brand they wear. External branding also acts as a differentiating factor and gives lot of recognition to the brand. It also acts as an advertising tool and makes the brand presence felt. d. The brand should concentrate on its internal efficiencies. This can be achieved in following ways: - By concentrating on its in store operations such as customer service, inventory and merchandise management and visual merchandising. -By improving on its supply chain management & merchandise allocation. -By understanding the taste of Indian consumer and designing the range accordingly. -By training their personnel so that they deal with the customers efficiently and provide them better services.
Successful retailing has always been said to be, about getting the nitty-gritty right of merchandising, forecasting, the supply chain, training and recruitment of high quality personnel and category management. Building retail brands that offer value will, in future, overshadow all these areas, and emerge as the dominant reason for the success of the organized Indian retailer. 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. Indian retailers must build their brands with im retail brands that they have sought to establish that will determine the loyalty of the retail shopper in future ages that seek to entertain and involve their customers.

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REFERENCES

Keller, K. (2004). Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 2nd education, Pearson Education Pte. Kotler P, Keller K.L., Koshy A., Jha M. (2007), Marketing Management, 12th edition, Pearson Education Pte., New Delhi Schiffman, Leon G.; Kanuk, Leslie Lazar. (2005) Consumer behavior. London : Prentice-Hall International Majumdar R. (2006), Product Management, Second Edition, Prentice Hall of India, New Delhi. Kazmi S.H.H. & Batra K. Satish (2004), Advertising and Sales Promotion, Second Edition, Excel Books, New Delhi

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