Minor Project: Critical Analysis of Consumer Brand Preference for apparels & accessories

Project Guide: Mr. Amit Aggarwal

Research & Compiled by: Akansha Choudhary M/FMS/08/03 Bhavik Gandhi M/FMS/08/10 Sunil Kerketta M/FMS/08/31 FMS Department National Institute of Fashion Technology - Mumbai

Introduction

“Consumers are evolving entities. Their aspirations & expectations are continuously changing. Today’s shoppers are more intelligent, discerning & tuned to their individual preference. They are increasingly fashion and brand conscious and select labels which define who they are or who they want to be. The biggest challenge for all the brands is to create loyal consumer who love them.” – Shopper’s Stop Ltd’s

About Brand & Branding
Brand according to (American Marketing Association) is ‘ A name, term, sign, symbol, or design, or combination of them, intended to identify the goods and services of one seller or group sellers and to differentiate them from those of competitors’ Branding thus is a means to distinguish one product from another and these differences may be functional, rational, or tangible – related to product performance of the brand. Brand equity is added value endowed to products and services. Brand knowledge consists of all the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand. In particular, brands must create, strong, favorable, and unique brand associations with customers.

Brand Equity Model
Brand Resonance The brand resonance model also views brand building as an ascending, sequential series from bottom to top.

Brand Equity Model

“Building a strong brand requires careful planning and a great deal of long term investment. At the heart of great brand is a great product or service backed by creatively designed and executed marketing” – Kotler & Keller

“Fashion begins and ends with the customers” – Stephen Frings

Marketing Communication applied to fashion Products

Brand Image in Market Communication process

Store Image in Market Communication Process

Consumer Confidence – AC Nielsen Report 2008

Consumer confidence worldwide has fallen to lowest level

Consumer Confidence – AC Nielsen Report 2008

World’s avid savers are from Asia & one in every three consumer (32%) chooses to buy new clothes from saved money.

Consumer Confidence – AC Nielsen Report 2008

79% of consumers in India are confident about positive change in the economic situation.

Consumer Market : KPMG report 2005

Increase in middle class (consumer group) played key role for the growth of consumer market in India

The Global Retail Apparel Index 2008 – ATKearney Report
Rank Country Absolute market size 45 74 57 29 22 21 21 22 52 31 Growth prospects 33 22 37 37 47 54 44 25 22 42 Consumer affluence 42 36 31 59 44 34 39 57 39 28 Score

1 2 3 4 5 6 7 8 9 10

Brazil China India Turkey Chile Romania Argentina Thailand Russia UAE

48 47 47 46 46 45 41 40 39 38

Apparel is India’s second largest retail category (behind food & grocery), representing 7 - 10% of retail market. Projected to reach $ 37 billion for 2008, apparel will be among the highest growth categories, with a CAGR of between 12 to 15%.

Consumer Buying Pattern – E&Y Report 2006

Clothing (7%) is the second largest segment in terms of retail sales.

McKinsey Report ‘07 – Consumer Brand Preference

In India, the youths have rated 4.3 out of 6 for the trustworthiness of National Brands & regarding the quality of foreign and local brand they are indifferent as per survey.

McKinsey Report ‘07 – Consumer Brand Preference

The survey indicates average spending on clothing of 6 months for India is Rs. 3045 in 2007. Indians do shopping during special occasions like marriage, festivals etc and with family and friends.

McKinsey Report ‘07 – Consumer Brand Preference

Comparing Indian consumer preference with that of Brazil, Russia & China. Indians prefer to buy branded clothes for special occasions, then all purpose use (Undergarments, Socks) and home wear.

Primary Data Analysis
• Number of Samples – 116 • Male – 65 Female – 51 • Employed – 82 Unemployed – 34 • Places where survey conducted – Mumbai & Navi Mumbai

Primary Data Analysis
Distribution of population as per occupation, gender and age using SPSS

Primary Data Analysis
How often people go for shopping……..

Primary Data Analysis

Primary Data Analysis
Average Spending during shopping………..

Primary Data Analysis
Relation between Average Spending and Frequency of Shopping using SPSS

Primary Data Analysis

Primary Data Analysis
SPSS Population Pyramid Graph

Primary Data Analysis

Celebrity endorsement includes – promotion of brands by actors, models, sport star, designer etc, promotion in movies, songs using celebrity.

Primary Data Analysis
Relative Preference of consumer while selecting garment and accessories

Primary Data Analysis

Primary Data Analysis

Primary Data Analysis

Primary Data Analysis

Conclusion
• In India the branding in the garments and accessories is in the growth phase. •Consumers have started identifying and preferring branded products over unbranded products & local and international brands due to growth in retail sector. • Another observation is that Indian consumer is quality and price conscious rather than brand conscious which means there are very few brand loyal customers. •Thus proper category management and catchment can improve branding and brand loyalty in India.

Reference
• Consumer Confidence concerns, Spending and attitude to recession,
a global Nielsen report – June 2008. (www.nielsen.com) • Conumer Markets in India –the next big thing? – KPMG report – September 2005. (www.kpmg.com) • Emerging opportunities for Global Retailers – The 2008 AT Kearney Global Retail Development Index (www.atkearney.com) • The Great Indian Retail Story – Ernst & Young Report – 2006 ( www.ey.com/india) • The Mckinsey Quaterly – How half the world shops: Apparel in Brazil, China, and India. 2007 (www.mckinsey.com) • Marketing management – Kevin lane Keller & Phillip Kotler, 12th Edition, Chapter 9 Page No 273 • Marketing management – Kevin lane Keller & Phillip Kotler, 12th Edition, Chapter 9 Page No 274 onwards • Strategic brand management – Richard Elliot & Larry Percy, Indian Edition, Chapter 6 Auditing and Measuring Brand equity, Page no. 110

Reference
• Fashion – From consumer to concept – Stephen Frings, 6th
Edition chapter2 page no.31 • Paper - Branding of Fashion product : a communication process, a marketing approach, by Graca Guedes, Universidade Do Minho (Portugal), Paula da Costa Soares, Instituto Politecnico do Porto – ESIEG (Portugal). • Annual report of Shopper’s www.shoppersstop.com & page 17 Stop Ltd is available on

• The global branding report – 2007 by Stacy Backer, chapter 1 – Introduction

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