Arvind Brands’ Competitive Position in the Indian Branded Apparel Market

Presented By:

Abhishek yadav(luck)-03
DFMRM-09/02 To----zebrra

CONTENTS
Introduction Apparel Industry Analysis of Arvind’s Brand Portfolio Arvind’s Competition Growth Strategies SWOT Analysis PORTERS FIVE FORCES Analysis Branding Strategies Issues Conclusion

INTRODUCTION
Established in 1931 by the Lalbhai brothers of Ahmedabad.
 Birth of three new units in 1993 - textile, telecom and garments division.  Arvind Brands Ltd was a Rs. 3.50 million subsidiary Arvind Mills Major stakeholder - ICICI , 2004. Arvind Mills reacquired ICICI’s stake by raising US$ 37.19 million Arvind Brands became 100% subsidiary of Arvind Mills in 2005.

Competitive edge-zero excise duty and economies of scale . Plans to sustain growth by increasing retail presence.INTRODUCTION All the brands under the Arvind name were growing at a healthy rate in 2004. Strategy was increasing distribution and penetration. Saif Ali Khan appointed brand ambassador for the Newport brand in 2005.

THE BRANDED APPAREL INDUSTRY Multi fibre agreement Characteristics of the industry. Raymonds and Pantaloons. Major players-Bombay Dyeing . Growth of the industry. Important segments-jeanswear Important trends in the industry. .

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Parameters to judge portfolio Maximizing brand equity : one brand should not harm others. . targeting and positioning of brands. Segmentation. Branding strategy according to breadth and depth.

Breadth of branding strategy The number and nature of different products linked to the brands sold by a firm. Depends on: •Aggregate market factors •Category factors •Environmental factors .

Depth of a branding strategy Number and nature of different brands marketed in the product class sold by a firm. Helps in •Increase shelf presence and retailers dependence •Attract consumers seeking variety •Increase internal competition Golden rule : Maximize coverage and minimize Brand overlap .

Arvind Brand Basket Flying Machine Newport Launched Age group Price range Difficulties faced Retailer Brand ambassador Tag Line 1980 15-30 500-1000 1993 18-28 300-500 Ruf n Tuf 1997 15-30 299-699 Excalibur 1995 18 & Above 500-1000 ---- Hike in exise to Hike in exise to Distribution 8% 8% hurdle own outlet Abhishek Bachchan Who Needs Phoren? own outlet Saif Ali Khan The Measure of Success Big Bazaar Akshay kumar ---- ------- .

men’s Jeanswear. VF corporation peabody & co.International Brands Arrow Licensed Lee Wrangler VF corporation Tommy Hilfiger JV with Murjani group 18 & Above Introduced men’s sportswear.. USA 27-35 Four sub brand •Classic •Premium •Urban •Sports 4-14 & 17-25 Adjudged the images fashion award “most admired Jeanswear” brand Age group specifics 17-25 &25-40 •Fashion conscious •Love wearing denim on weekend •Retail ambience was given importance . junior Jeanswear Cluett.

To attract different segments by heterogeneous mix.Why so many brands ? Aggressive strategy to verticalize its operations. . Vision of largest apparel brands. Facilitate new brand acceptance Reduce risk perceived by customers Improve efficiency of marketing.

Competition .

Major Competitors Of Arvind Brands .

and several others. A flagship company of the A V Birla Group Company. Tommy Hilfiger. Allen Solly. Peter England.Marks and Spencer’s. Elements and SF (San Frisco). Owns perpetual license for premier brands like – Louis Philippe. Van Heusen.Madhura Garments It’s was the garment division of Indian Rayon and Industries Ltd. Preferred global supplier of international brands like. . Ralph Lauren. Byford. It distributes its brands through its own retail chains namely Planet Fashion and Trouser Town. Polo.

Brand Portfolio of Madura Garments .

(RAL) ranks amongst India's largest and most respected apparel companies They provide the best of fabric and style through some of the country’s most prestigious brands – Raymond Finely Crafted Garments.RAYMOND APPAREL LTD A 100% subsidiary of Raymond Limited. ‘The Raymond Shop’ retail outlets and multi-brand outlets across India and the Middle East . Raymond Apparel Ltd. Parx. Notting Hill and Zapp! All of Raymond’s brands are available at exclusive brand stores. Manzoni. ColorPlus. Park Avenue.

RAYMOND’s BRAND PORTFOLIO .

Within an year Indus League had transformed itself from a new entrant into a company that has launched two fashion brands namely Indigo Nation and Scullers Indus-League has a portfolio of Three proprietary brands . Scullers and Jealous covering different segments of the fashion market.. .INDUS LEAGUE Indus-League Clothing Ltd. was founded on 14th April 1999 by a team of eight top-flight management professionals from the clothing industry. These professionals have established a reputation for creating and building some of the most successful fashion brands in South Asia and the Middle East.Indigo Nation .

Levi Strauss & Co.LEVI STRAUSS & CO.  Founded in 1853 by Bavarian immigrant Levi Strauss. Red Tab and Red Loop . is one of the world's largest brand-name apparel marketers with sales in more than 110 countries  In 2009 it completed 15 years in India  It expanded its portfolio from being a jeans only brand to emerge as the complete casual wear brand  4 sub-brands Sykes. 501.

Levi Strauss’s Brand Portfolio .

BAGS . Globus. The brand is retailed through selective stores in the country and leading National Chain Stores like Shopper's Stop. Lifestyle.PROVOGUE The Company was incorporated on November 11. T-SHIRT . JACKETS & BLAZERS . FRAGRANCE . DENIM . CAPS. Westside etc. 1997 as Acme Clothing Private Limited. Provogue is also retailed through a chain of exclusive brand outlets called "Provogue Studio" PROVOGUE’S PRODUCT RANGE INCLUDE: INNERWEAR . LINEN SHIRTS . More importantly. Provogue stands for fashion and not pure apparel. BOTTOMS . FORMAL SHIRTS . Its designs are contemporary and cutting edge Provogue’s brand statement “ Redefining fashion” and its innovative merchandise have created a niche in the minds of its consumers. BELTS . FOOTWEAR . CASUAL SHIRTS. SUNGLASSES .

Focus on retail------Company want to achieve 80% of its sales through apparel.ARVIND’S GROWTH STRATEGY As on 2005. Arvind was in a comfortable position. Change from Centralization to Decentralization Clustering of Brands .

ARVIND’S GROWTH STRATEGY(Cont.com .com Tie ups with Indiatimes.com and rediff.) Globalization Strategy • Acquiring rights of Reds in North and south America • Exclusive stores in Gulf to showcase its brands Launching of Spectrumplaza..

SWOT ANALYSIS STRENGTHS  Strong portfolio of domestic and international brands  Economies of scale through complete integration Latest manufacturing tools  Wide geographical presence WEAKNESS Lack of fresh ideas  Presence in only big cities  Not doing enough to build brand equity .

Bangladesh  Excise duty . Bombay Dyeing. Thailand.OPPORTUNITIES Changing retail scenario Rapid growth in age group of 15-44 years Ability and willingness in India THREATS Competitors like Raymond. Madura Garments Cheap imports from China.

PORTER’S FIVE FORCES MODEL .

COMPETITIVE RIVALRY Huge number of competitors Competitors adopting aggressive growth strategies as well as eyeing top cities Stiff competition from small town stores and specialty stores .

THREAT OF NEW ENTRANTS Lucrative market for international brands Low entry barriers in unorganized retail sector .

personal attention • Growth in online shopping .THREAT OF SUBSTITUTES • Plenty of offerings in premium and super premium category • Small town stores – proximity. home delivery.

BARGAINING POWER OF SUPPLIERS Increased no of players increases bargaining power of suppliers Not all companies have complete integration (like Arvind) .

BARGAINING POWER OF CUSTOMERS Low switching costs Low customer loyalty .

In-House Brands: Newport. Individual Brands . Arrow.BRAND HIERARCHY Corporate or Company Brand: Arvind Mills Family Brand: Arvind Brands Ltd. Ruf n Tuf Modifier: Leesures by Lee The apparel industry did not follow the umbrella branding strategy Arvind divided its brands into 4 clusters and each cluster had its distinct marketing strategies . Tommy Hilfiger . Wrangler.Licensed Brands: Lee.

target audience and positioning is very similar to its competitors.POP & POD Points of Parity Points of Difference • are the attributes or benefits which the brand shares with other brands • are the USPs of a brand. Arvind’s POD’s are not well defined. . Their offering. distinct from others In this case.

CHANNEL STRATEGIES Indirect Channels • ex. Company-owned stores Arvind was shifting its focus from multi brand and small town stores to company-owned stores . Multi brand store. small town retailers Direct Channel • ex.

PUSH & PULL STRATEGIES Pull Strategies • are the ones directed towards end consumers ex. Push Strategies weren’t required as they were concentrating on company-owned stores . Television ads Push Strategies • are directed towards distributors and retailers. endorsements by Bollywood stars like Akshay & Saif. Ex. Trade discounts Arvind mainly concentrated on Pull strategy ex.

Brand Endorsement: associating a popular figure as the brand ambassador to give the brand a personality and strengthen its positioning ex. which manufactured fabrics. wallets etc. Forward Integration: Arvind Mills.OTHER CONCEPTS Brand Extension: when different products are manufactured under same brand name. jeans and accessories like belts. integrated vertically forward by launching its in-house brands and retail stores. Arrow started off as a shirts-only brand then diversified into casuals. Action star Akshay Kumar was roped in to endorse Ruf n Tuf to give it a tough & rugged look. Ex. .

ISSUES Lack of new ideas Inability to keep up with the changing market demands Unwilling to place its products in multi-brand stores thereby losing customers in the tier-II. tier-III cities Tough competition from local and international players Just one offering for the bottom of the pyramid (Ruf n Tuf) .