Fashion Industry

 

CHAPTER 1 INTRODUCTION “Brands are like human beings. They are born, fed and nurtured, made strong and responsible so that they can be faithful friends of the people (customers), form mutually  beneficial and satisfying satisfying relatio relationships nships with with them and become their their companions companions for life. Such brands, make their parents (organization or corporate) proud of them. The best  brands are the ones ones who help help in forming forming and sustaining sustaining strong strong long term “parent-brand “parent-brand- people”” relationships.  people relationships. These brands brands form the potential potential for present present growth and future expansion. They help the organizations conquer peaks at the time of booms and stay afloat and swim at times of depression.” We come across a number of brands in our daily lives. Our morning starts with using a toothpaste (Colgate, Pepsodent or Close-up), using a bathing soap (Lux, Fairglow or  Cinthol) and shampoo (Clinic All Clear or Vatika), Vatika), wearing clothes ( Allen Solly, Levi’s or Raymon Raymonds) ds),, breakfas breakfastt bread bread (Britan (Britannia nia or Modern Modern)) and bu butter tter (Amul) (Amul) or jam (Kissan), lunch and dinner (Nature Fresh or Pillsbury flour and Safal vegetables), morning and evening tea and coffee (Tetley, Nescafe or Bru), going out in a car  (Hyundai Santro, Honda Accord or Mercedes Benz). Talking on the cell phone (Motorola, Nokia, Siemens or Samsung), watching television in the evening (LG, Sony or Philips) or listening to music (Philips or Apple) etc. But how often do we think of what all a company company does to put a positive imprint (fight for a shelf space) in the mind of the customer? Today nearly all the companies are focusing more and more on building strong brands. The concept of brand equity and its management has come to the fore like never before. More and more companies are refocusing on select strong brands. This project is thus a timely stuffy of the importance of brands, what it takes to build them, what benefits do they give to different stakeholders (organization, distributors and customers), how can they be leveraged, what is the impact of modern technology on branding, branding on the web, branding in mergers and acquisitions acquisitions etc. examples examples have been given and cases discus discussed sed at every suitable point to bring out an application oriented understanding of “building and managing brands”.

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OBJECTIVES OF THE STUDY • •

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To study the factors which influence the buying pattern. To study the effect of brands on consumer buying behavior in relation to readymade garments. To do a co comp mpar arati ative ve st stud udy y of the pr prom omot otion ion st strat rateg egies ies ad adop opte ted d by th thee companies in the readymade garments.

 

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RESEARCH METHODOLOGY

Market research is a form of applied sociology that concentrates on understanding the  behaviorr whims and preferences  behavio preferences of consumer consumer economy economy and aims to understand understand the effects and comparative success of marketing campaigns. In other words market research examines all aspects of a business environment. It asks questions about competitor’s market structure government regulation. Economic trends techn tec hnol olog ogica icall advan advance cess and and nu nume mero rous us othe otherr facto factors rs that that make make up th thee bu busi sines nesss environment. Sometimes the term refers more particularly to the financial analyses of  companies industries or sector. N this case financial analysis usually carries out the research and provides the result to investment advisor and potential investors Research methodology

Researc Res earch h method methodolo ology gy is used used to solve solve the researc research h related related complic complicatio ation n that we confront during research period. It provides us a systematic scientific and reasonable way to solve the problems. Research methodology keeps many dimensions according to existing situation The purpose of methodology is to explain their acceptable procedure while we through research work. It includes over all research design, data collection process, sampling  process,  proces s, field survey survey,, analysis, analysis, procedure. procedure. I selected survey research methodology. It is the best and scientific way to descriptive research & to learn about customer awareness, beliefs, preferences, satisfaction and to measure these magnitudes in the general population. My research is interview based. It is best way to know what the people think and what they want, people can give their ideas in their own words & can express their needs. I contacted people through the personal interview. Interview was based on intercept form.. In this intervie form interviewer wer must must not require require too much time. Interce Intercept pt form. form. In this interviewer must not require too much time.

Research instrument

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Questionnaire is most common research instrument in collecting primary data during mark ma rket eting ing re rese searc arch. h. A Ques Questio tionn nnair airee cons consis ists ts of a se sett of qu ques estio tions ns pres presen ente ted d to respondents. Because of its flexibility the questionnaire is by far the most common instrument used to collect primary data. Data is generally of two types 1. Prim rimar ary y data 2. Secon econda dary ry dat ataa Primary data are those data specially collected for problem in hand. In this study data are collected from primary sources through personal interview of retailers. These methods of data collection are quite popular. These are the major methods of  data collection in the research study.

Secondary data are those data, which are collected for some purpose other than helping and solving the problem I hand. Sources of secondary data are: •

Magazines

•

Company records

•

Company web sites

Data collection method

The data is collected for research questionnaires method and through visualization for  franchi fran chisee see analysis analysis.. A questio questionna nnaire ire is fram framed ed then collected collected by making making it fill by different respondent. Data analysis techniques

Analysis of data is done through quantities that are numerical figure.

Data analysis instrument

Instrument used for data analysis is tabulation of data, bar chart and pie chart. SAMPLING Sampling Technique Used

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In this project the technique of sampling used was Judgment sampling. Judgment Sampling involves the choice of subjects who are most advantageously placed or in the best position to provide the information required.

Sample Unit

In this project case sample were the people of Navi Mumbai region & the aim was to collect the true information about buying behavior of people.

Sample Size: 200

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SCOPE OF THE STUDY

The scope of the research is based on the fashion industry and it throws light on the impact of the brand buying behavior. Significance of the study:My research will help the fashion industry to know the current scenario of customers  buying decision decision with respect to to brand image of of the garment. garment. Significance for the researcher:

Wide exposure to the fashion industry.

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Studying about the impact brand on consumer buying behavior.

 

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LITERATURE REVIEW Understanding Branding

BRAND The word “Brand” owes its origin to the Norwegian word “brand” which means to  burn. Farmers used to put some identification identification mark on the body of the livestock to distinguish their possession. Products are what companies make, but customers buy  brands.. Therefore marketers resorted to branding in order to distinguish  brands distinguish their offerings offerings from similar similar produc products ts and services services provid provided ed by their their competi competitors tors.. Additio Additionall nally y, it carries an inherent assurance to the customers that the quality of a purchase will be similar to earlier purchases of the same brand Brand is, “an image that develops into a personality for yourself, your product, your  services,, and/or your company.” services company.” It is that one attribute that comes to mind when your  your  clients and audience thinks about you. The key is to determine, create, and then project that personality; that brand.  A brand is a name, term, sign, symbol or design or a combination combination of one seller or a  group  gro up of sellers sellers and and to differentiate differentiate them them from from those those of competito competitors. rs.

Brand elements Name: The word or words used to identify the company, product, service, concept

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Logo: The visual trademark that identifies the brand

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Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty; "Can you hear me now" is an important part of the Verizon brand. 

Shapes: The distinctive shape of the Coca-Cola bottle or the Volkswagen Beetle are trademarked elements of those brands.

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Graphics : The dynamic ribbon is also a trademarked part of Coca-Cola's brand.

Color: Owens-Corning is the only brand of fiberglass insulation that can be  pink. 

Sounds: A unique tune or set of notes can "denote" a brand: NBC's chimes are one of the most famous examples. 

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Movement: Lamborghini has trademarked the upward motion of its car doors.

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Smells: Scents, such as the rose-jasmine-musk of Chanel No. 5 is trademarked.

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Taste: KFC has trademarked its special recipe of 11 herbs and spices for fried chicken.

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BRANDING

Branding is a process, a tool, a strategy and an orientation. Branding is the process by which a marketer tries to build long term relationship with the customers by learning their needs and wants so that the offering offering (brand) could satisfy their mutual aspirations.

•

Branding can be used as a differentiation strategy when the product cannot be easily distinguished in terms of tangible features (which invariably happens in case of  many services, durables etc.) or in products which are perceived as a commodity (e.g. cement, fertilizers, salt, potato chips etc.).

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Brand building is a conscious customer satisfaction orientation process. The  brand owner tries to retain customers customers to its fold over their competitors competitors by a mix of  hardware software because when a customer feels satisfied he / she develop a kind of  loyalty for the same. •

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Attributes

A brand will communicate specific attributes, such as prestige

Benefits

A brand strengthens a product’s attributes by communicating a set of   benefits that makes makes it more more attractive attractive

Values

A brand represents a company’s core values and belief system

Culture

A brand brand is represe representati ntative ve or target target a target target audienc audiences es socio socio cultural cultural characteristics A Brand can project behavioral personality patterns of  targeted consumers The brand, in some cases, can emulate the end user 

Personality User

 Kotler  (1999) expands on the concept of identity by stating that a brand is capable of   Kotler (1999) conveying up to six different levels of meaning to a targeted audience. This is known as the “Six “Six Dimensions of The Brand ” Brand awareness

Brand awareness refers to customers' ability to recall and recognize the brand under  different conditions and link to the brand name, logo, jingles and so on to certain associations associa tions in memory. It consists consists of both brand recognition recognition and brand recall. It helps the customers to understand to which product or service category the particular brand  belongss and what products  belong products and services services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider  your brand if they are not aware of it. Theree are Ther are va vari riou ouss leve levels ls of br bran and d awar awaren enes esss th that at re requ quir iree di diff ffer eren entt le leve vels ls an and d comb combin inati ation onss of brand brand recog recognit nition ion and re recal call. l. Top-o Top-of-M f-Mind ind is the go goal al of most most companies. Top-of-Mind Awareness occurs when your brand is what pops into a consumers mind when asked to name brands in a product category. For example, when someone is asked to name a type of facial tissue, the common answer is “Kleenex,” which is a top-of-mind top-of-mind brand. Aided Awareness occurs when a consumer is shown or  read a list of brands, and expresses familiarity with your brand only after they hear or  see it as a type of memory aide. Strategic Awareness occurs when your brand is not only onl y top-oftop-of-min mind d to consum consumers ers,, but also has distinctiv distinctivee qualitie qualitiess that stick out to consumers as making it better than the other brands in your market. The distinctions that set your product apart from the competition is also known as the Unique Selling Point or USP.

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Branding in Today’s Markets

A central function of branding is the facilitation of the consumer choice process. Due to the complexity of having to select a product amongst thousands of similar offerings, consumers will instinctively attempt to simplify their choice process by selecting brands thatt ha tha have ve sa satis tisfie fied d th them em in th thee past past.. Th Thus us,, on onee ca can n co concl nclud udee th that at pleas pleasant ant past past experiences experie nces is highly conducive conducive to consumers consumers associating benefits to a brand. One can conclude that a central function of branding is its ability to negate the need for a consumer to seek out information when a need or a want has been recognized, but rather, lead him to a brand that has been satisfying in the past. One must acknowledge however, that frequent purchasing of a brand cannot always be linke lin ked d to pr prev eviou iouss ex exper perien iences ces,, but but can alt alter ernat native ively ly be forme formed d by embe embedd dded ed  perceptions.  percept ions. A consumer consumer might strongly strongly favour a brand with no prior purchasing purchasing experience. This type of consumer behavior is based on stimulus provided by direct ex expo posu sure re to ad adve vert rtis isin ing g ca camp mpai aign gns, s, a co comp mpan any’ y’ss PR ef effo fort rtss or ev even en a hi high gh concentration of local distribution in an area that is in close proximity to a consumer.

In terms companies’ only,branding, can differentiation of  their the ir offering offeof rings, s, which which views ultimate ultimately, will produc proitduce e induce a state statethe of natural competi competitive tive advant advantage age. . Differentiation can only allow for competitive advantage if the cost of differentiating is significantly lower than the revenue earned by the sales. Differential advantage allows comp compani anies es to sh show owcas casee th their eir of offer fer in re respe spects cts to ot othe herr co comp mpet etito itors rs in th thee same same marketplace. Importance of Branding

Principle of branding - A set of related products that are manufactured by a company and are sold as a family of products under the marquee or banner of a brand have a certain recognition and a place of respect within that very market. Branding the product thus, is a means of creation of identification and recognition in the market. It is not just a process of getting a trademark and logo, but it is process of evolving as a well reputed name on the market and field. A very well known brand that has become the identity of  the market itself is the office equipment manufacturer 'Xerox'. Though it is a company's name, the act of photocopying is termed as 'Xeroxing'.

Importance of Branding in Business  From the point of view of a business, the process of branding involves making of a trademark and a good name. A registered trademark and a name ensure individuality and uniqueness of a particular product or family of products. The lawful registration of  the trademark means that any competitor cannot copy any of the elements and names of  the products. Branding can be done for anything that can be promoted in the consumer's market, may it be a simple label, a family of products or an umbrella brand. People can

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also have a personal brand. The primary advantage of branding is that it is safeguarded from unlawful activities and at the same time, it is also a way of developing a good reputation in the market. Often you might see some new product carry the tag that says 'from the makers of …  brand', well this is another another advantage advantage of branding. branding. When a business business who owns an already famous famous brand wants to launch a new brand in the market, they can use the preearned goodwill and reputation for the new launch. The advantage is that, people are  bound to purchase purchase the the new product productss out of curiosity. curiosity. Importance of Branding in Marketing  Marketing primarily involves the study of demand in a market and creating a response Marketing response in the form of supply. In the field of marketing of  marketing,, the brand name plays an important role as it helps the people to promote the brand name and its merits quite easily. Apart from that, tha t, it also also beco become mess poss possibl iblee for the mark market eting ing pe peop ople le to ge gene nerat ratee intell intellige igence nce information about the brands popularity and also what people exactly want from the  brand owning company. company. As a result of a brand loyal group group of consumers, consumers, it also  becomes  becom es easier for marketing department department to asses regular regular and promised demand. demand. Apart from that, schemes such as free gifts and discount discountss often boost the sales as the brand is an

important

icon

of

the

market.

Importance of Branding in Advertising  ofte ten n co cons nside idered red to be a part part of mark market eting ing ho howe weve ver; r; br bran andi ding ng a Advertising is of Advertising   particular  particul ar product helps the advertisers to provide provide catchy logos and advertise advertisements. ments. As a brand name can never be copied, advertisers face lesser heat from unauthenticated advertisements, effectively, their advertisement creation gets protected. Apart from that advertisers can initiate fearless and independent advertising as due to the process of   branding,  brandi ng, the consumers consumers are already well aware of the product, product, its identity and nature. In short, the importance of branding can be summed up in simple words 'successful  branding  brandi ng is a process process that generates generates revenue that cannot be counted, counted, it creates a reputation that is felt not seen, and it is an asset that one cannot show on a balance sheet. Development of Brand Equity

The amou The amount nt of clou cloutt cont control rolled led by diffe differen rentt br bran ands ds will will vary. vary. Some Some are de deep eply ly embedded in global culture and are thus, highly recognizable, whilst other are virtually unknown to consumers. When attempting to place a value on a brand, one refers to “brand “bra nd equity” equity”.. Chay Chay (1991 (1991)) defines defines brand equity equity as a “se sett of assoc associat iation ionss and  and  beha behavio viors rs on the part part of a brand brand’s ’s cu custo stome mers, rs, chan channel  nel   mem members bers,, and Parent  Parent  Corporation that permits the brand to earn greater volume or greater  margins than it could without the brand name and that gives the brand a strong, sustainable, and 

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differential differen tial advanta advantage ge over over competito competitors rs” ”. This This ex expla planat natio ion n create createss a clear clear link  link   between  betwe en a product’s product’s values, values, be it financial financial or intangible intangible,, and a brand name. name.

Using the financial perspective, one measures brand equity by determining how much more consumers are willing to pay in direct relation to the brand name. This gives marketers essential insight into the financial value of the brand. When viewing brand equity from this perspective, one must naturally consider overhead, such as costs of  advertising. Using the consumer-based perspective entails considering how the attitude strength of  consumers is directly influenced by the brand name. This perspective operates under the assu assump mptio tion n that that the cons consum umer er ha hass had had ex exte tens nsive ive ex expe perie rience nce with with th thee prod produc uctt in question.

The consideration and development of brand equity is vital as its benefits are wide reaching. One can consider brand equity as an asset, as it can increase cash flow via the widening of a company’s market share and the allowance of higher pricing policies. The Competitive Advantage of Brand Loyalty There is a palpable correlation between the efficient branding of a product or service, and the display of brand loyalty in consumer purchasing patterns. In this instance, loyalty is defined as a “deeply held commitment to re-buy or re-patronize re-patronize a preferred  preferred   product/service  product/se rvice consistently in the future, thereby causing repetitive same-brand or  samee brand-se sam brand-sett purchasin purchasing, g, despite despite situation situational al influenc influences es and marketin marketing g efforts efforts having the potential to cause switching behavior".

Brand loyalty is a direct consequence of the ability to better satisfy the desires of a customer that main competitors do. It now becomes clear that a modern day marketer’s

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 principal objective  principal objective is to build sustainable sustainable forms of loyalty between between a company company and its consumers, instead of focusing solely on the individual sale of products. Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer   perceivess that the brand offers the right product  perceive product features, features, image, image, or level of quality at the right price. Consumer behavior is habitual because habits are safe and familiar. In order to create brand loyalty, advertisers must break consumer habits, help them acquire new habits, and reinforce those habits by reminding consumers of the value of their   purchase  purcha se and encourage encourage them to continue continue purchasing purchasing those produc products ts in the the future. future. The image surrounding a company's brand is the principal source of its competitive advantage and is therefore a valuable strategic asset. Unfortunately, many companies are not adept at disseminating a strong, clear message that not only distinguishes their   brand from the competitors', competitors', but distinguishes distinguishes it in a memorable memorable and positive positive manner. manner. The challenge for all brands is to avoid the pitfalls of portraying a muddled or negative image, and instead, create a broad brand vision or identity that recognizes a brand as something greater than a set of attributes that can be imitated or surpassed. In fact, a company should view its brand to be not just a product or service, but as an overall  brand image that defines a company’s philosophie philosophies. s. A brand needs more than identity; it needs a personality. Just like a person without attention-grabbing characteristics, a  brand with with no personality personality can easily easily be passed passed right over. A strong strong symbol symbol or company company logo can also help to generate brand loyalty by making it quickly identifiable.

Understanding Consumer Buying Behavior Definition

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Consumer behavior refers to the mental and emotional process and the observable  behaviorr of consumers  behavio consumers during during searching, searching, purchasing purchasing and post post consumption consumption of a product product or service Consumer behavior involves study of how people buy, what they buy, when they buy an and d why why th they ey bu buy. y. It blen blends ds th thee elem elemen ents ts from from ps psyc ycho holo logy gy,, so soci ciol olog ogy, y, soci socio o  psychology  psych ology,, anthropology anthropology and economics. economics. It also tries to assess the influence influence on the consumer from groups such as family, friends, reference groups and society in general. Buyer behavior Buyer behavior has two aspects: the final purchase purchase activity visible to any observer observer and the detailed or short decision process that may involve the interplay of a number of  complex variables not visible to anyone.

Factors Affecting Consumer Buying Behavior

Consumer buying behavior is influenced by the major three factors: 1. Social Factors 2. Psychological Factors 3. Personal Factors. 1. Soci Social al Fa Factor tors

Social factors Social factors refer to forces forces that other people people exert exert and which affect consum consumers ers’’  purchase  purcha se behavior. behavior. These social factors can include culture and subculture, subculture, roles and family, social class and reference groups. Example: By taking into consideration Reference group, these can influence/ affect the consumer   buying behavior. behavior. Reference Reference group refers to a group with whom an individu individual al identifies herself/ himself and the extent to which that person assumes many values, attitudes or   behaviorr of group  behavio group members. members. Reference Reference groups groups can be family, school or college, college, work  group, club membership, citizenship etc. Reference groups serve as one of the primary agents of consumer socialization and learning and can be influential enough to induce not only socially acceptable consumer   behaviorr but also socially unacceptable  behavio unacceptable and even personal personal destructive destructive behavior. behavior. For  example, if fresher student joins a college / university, he/she will meet different people and form a group, in that group there can be behavior patterns of values, for example style of clothing, handsets which most of group member prefer or even destructive  behaviorr such as excessive  behavio excessive consumption consumption of alcohol, alcohol, use of harmful and addictive addictive drugs etc. So, according to how an individual references references him / her to that particular reference group, this will influence and change his/her buying behavior.

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2. Ps Psyc ycho holo logi gica call Fact Factor orss

These are internal to an individual and generate forces within that influence her/his  purchase  purcha se behavior. behavior. The major forces include include motives, motives, perception, learning, learning, attitude and  personality.  person ality. Example: Attit Attitud udee is an enduri enduring ng or orga ganiz nizat ation ion of motiv motivat atio ional nal,, emot emotio ional nal,, pe perce rceptu ptual al an and d cognitive processes with respect to some aspect of our environment. Consumers form attitude towards a brand on the basis of their beliefs about the brand. For example, consumers of Sony products might have the belief that the products offered by Sony are durable; this will influence those customers to buy Sony products due to this attitude towards the brand. 3.

Personal Fa Factors

Thesee inclu Thes include de th thos osee as aspe pects cts that that are uniq unique ue to a perso person n an and d influ influenc encee pu purch rchas asee  behavior.  behavio r. These These factors factors include include demographic demographic factors, factors, lifestyle, lifestyle, and and situational situational factors. factors. Example: Lifestyle is an indicator of how people live and express themselves on the basis of their  activities, interests, and opinions. Lifestyle dimension provide a broader view of people about how they spend their time the importance of things in their surroundings and their   beliefs on broad issues associated associated with life and living and themselves. themselves. This is influenced by demographic factors and personality.

E.g. - A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and less informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their lifestyle and profession, the buying behavior of people differs from one another.

Consumer Buying Decision Process

Consumer buying decision process is the processes undertaken by consumer in regard to a potential market transaction before, during and after the purchase of a product or  service. Consumer decision making process generally involves five stages: A.

Problem Recognition

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Purchase Purch ase decis decisio ion n maki making ng pr proc oces esss begi begins ns when when a bu buye yerr beco become mess aware aware of an unsatisfied need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or  service. There are several situations that can cause problem recognition, these include: •

Depletion of stock 

•

Dissatisfaction with goods in stock 

•

Environmental Changes

•

Change in Financial Situation

•

Marketer Initiated Activities

It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she recognizes that her phone has been damaged i.e. the phone has hardware  problems  proble ms and needs to be repaired repaired or or buying buying a new new piece. piece. B.

Information Search

After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to solve the  problem  proble m by asking a friend or goes to the market to seek advice for which product product will  best serve serve his need, this this is called called limited limited decision decision making. making. Sources of information include: •

Personal sources

•

Commercial Sources

•

Public sources

•

Personal experience

C.

Alternatives Ev Evaluation

Consumers’ evaluates criteria refer to various dimension; features, characteristics and  benefits that a consumer consumer desires desires to solve a certain problem. problem. Product Product features and its  benefit is what influence influence consumer consumer to prefer that particular particular product. The consumer consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature. D.

Purchase Ac Action

This stage involves selection of brand and the retail outlet to purchase such a product.

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Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they  purchase  purcha se items which are of higher values values and which involve involve higher sensitive sensitive purchase purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit.

E.

Post-Purchase Actions

Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the  purchase  purcha se is basically basically a function function of the initial performance performance level expectation expectation and  perceived  perceive d performance relative to those expectations. expectations. Consumer Consumer tends to evaluate their  wisd wisdom om on the pu purc rchas hasee of th that at pa parti rticu cular lar produ product. ct. This This ca can n re resu sult lt to co cons nsum umer  er  experiencing post purchase dissatisfaction. If the consumer’s perceived performance level lev el is below below expecta expectation tion and fail to meet meet satisfac satisfactio tion n this will eventu eventually ally cause dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint  behaviorr and spread negativ  behavio negativee word-of-mou word-of-mouth th concerning concerning that particular particular product. product.

Branding’s Influence on Consumer Purchasing Behavior

The preceding section of this literature reviewed has sought to define the term branding and explain its functions and values as an instrumental marketing tool used in attaining differential and competitive advantage. The follo The followi wing ng secti section on of this this litera literatu ture re re revie view w will will se seek ek to en enlig lighte hten n th thee impac impactt  branding  brandi ng has on the consumer consumer decision-m decision-making aking process. process.

Firstt howeve Firs however, r, one must gain gain clear clear insigh insightt into the definiti definition on of consum consumer er bu buying ying  behavior in order to understand  behavior understand the impact branding has on it. In defining “consumer  “consumer   buying behavior”, behavior”, one may refer to Assael (1987) (1987) who distinguishes distinguishes four types of  consumer buying behaviors. He bases these four consumer types on the varying degrees of involvement and the degree of differentiation amongst the brands in question.

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Consumers who are described as displaying complex buying behavior will expand their   beliefs rega rdingpositive a particular product product as a starting point. point. These This stage will will eventually lead them toregarding develop attitudes regarding the product. intermediary stages lead them to the final stage of their behavioral pattern, where they consciously make the choice of purchasing the product. Referring to the Assael’s model; one will notice this type of consumer engages in highly involved purchasing experiences being fully aware of the range of brands available and their levels of differentiation. Assael (1987 Assael (1987)) classifie classifiess consum consumer er who exhibit exhibit Disson Dissonance ance-red -reducin ucing g be behavi havior or as consumer who are highly involved in the purchasing experience, however see few differences between brands. For this reason, the consumer will seek information on the differentiation of the product offerings and will not be particularly price sensitive when seeking functionality. In the event that this consumer finds him or herself in a market that displays low levels of differentiation, the consumer might result to purchasing influenced by convenience. Like consumers who display complex buying behavior, consumers with dissonance-reducing behavior will seek to establish personal beliefs regarding the product. If fostered adequately, these beliefs with eventually transform into attitudes regarding the product offerings. These attitudes, if favourable, will lead to a thoughtful purchase. Assael (1987) considered consumes displaying habitual buying behavior as consumers who did not experience the same sequence as the previous two behavioral types. Instead of basing their decision-making process on seeking product information pertaining to funct functio iona nalit lity y or chara characte cteris ristic tics, s, this this type type of co cons nsum umer er will will pu purc rchas hasee base based d on information gathered passively, via the company’s promotional efforts, by it through the medium of television, radio or print advertising. This behavioral type, as can be seen on Assael’s (1987) model, with low-level involvement products. Differentiating

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this consumer type is the fact that they being the process with beliefs already embedded in their mind, which they have learnt passively, rather than actively. Variety-seekers are the last behavioral type contained in Assael’s (1987) model. Their  typical typ ical buying buying situation situation is su summa mmarize rized d by low-lev low-level el involv involveme ement nt in a market market that displays high levels of product differentiation. Common to this type of consumer, is “brand switching”, in order to satisfy their need for diversification. In order to fully ascertain the effects that branding has on the consumer decision making mak ing proces process, s, the Howar Howard-S d-Shet heth h Decisio Decision-m n-makin aking g model model by Howard Howard and Sheth Sheth (1969) is used that explains not only the process of consumer decision-making during  purchasing  purcha sing activities, activities, but one that facilitates the understanding understanding of pre and post  purchasing  purcha sing activities activities as well. Impact on The Consumer Learning Process

At its most basic definition, one can define the consumer learning process as being a time period in which a customer is heavily exposed to the branding process of a product or service. The branding process can include any aspect of the promotional strategy, including audio/visual forms of promotion. By learning from this information, whether  it is a conscious process or not, the consumer will develop strong feelings towards a  brand. For marketers, branding has a vital effect on the learning process, process, because because it is self-growing. Once consumers start to purchase product, others will vicariously learn from them. Vicarious learning is when consumers begin to copy the behavioral patterns of th thei eirr pe peer erss by maki making ng ch chan ange gess in th thei eirr own own live livess to re refl flec ectt what what th they ey ha have ve “vicariously” learnt. In searching for a more academic view on consumer learning, one can understand the  processs as modifications  proces modifications to a consumer’s consumer’s behavioral behavioral patterns that are the direct consequence of either past experiences or information gathered during all aspects of the  purchase  purcha se decision-making decision-making process. process. These modifications modifications are caused by information information that has essentially been saved as a set of meaningful meaningful associations in the consumer’s consumer’s mind. These above-mentioned associations provide the consumer with link to the brand image of offerings in respects to the promotional tools used to further this brand image. These tools include both physical characteristics of the product as well as pricing policies. All the elements that are retained by the consumer stem from what they have been exposed to during their individual learning process. This is ultimately, what will shape their  views and attitudes in regards to brands. It has been found that the learning process discussed above acts as a catalyst in creating emotional emotio nal and evaluating responses. responses. These responses responses are embedded embedded in the consumer’s memory span, which will be recalled when faced with a purchase decision-making  process.  proces s. Thus, understanding understanding the learning process process is the key to marketers marketers who seek to efficiently use promotional methods to influence consumers, because the imprints they

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create in the mind of consumer will later on be recalled when selecting a product or   brand. Impact on Consumers’ Attitudes Towards Brands

An attitude attitude can be conside considered red to be either either positiv positivee or negativ negative, e, depend depending ing on the outcome of their learning and evaluating process. The evaluation of consumer attitudes towards brands has quickly become a major part in conducting marketing research. The development of positive attitudes towards brands can lead to not only the sustaining of competitive competitive advantage, advantage, but in the bettering of the financial health of a company. Br Bran andi ding ng ha hass been been found found to be a key key in fo form rmati ation on of po posi sitiv tivee att attitu itudes des to towa wards rds  products,  produ cts, especially especially those involving low-levels low-levels of consumer consumer involvement. involvement. However However it has been noted that there are factors that might negate the effects of the formation of   positivee attitudes.  positiv attitudes. One being that the effects of positive attitudes can dissipate dissipate should should the consumer not purchase the product within a certain timeframe. Another factor that might negate the effects of positive attitudes might be an overtly high pricing policy, which might have a contrary effect to the consumer’s positive attitudes towards the  brand and result result in a non sale. sale. In considering attitudes towards brands, one must ponder whether these attitudes all remain rem ain at a conscio conscious us level, or whethe whetherr brandin branding g can instigate instigate attitud attitudes es at a subsubconscious conscio us level. Sigmund Freud’s theory that individua individuals ls are rarely aware of how their  own psycholo psychology gy shapes shapes their their visual visual behavi behavioral oral pattern patternss which which sugges suggests ts that at an uncons unc onscio cious us level, level, consum consumer er might might have have beliefs beliefs that shape shape their their attitud attitudes es towards towards  products.  produ cts. By acknowledg acknowledging ing Freud’s Freud’s theories, theories, one can conclude conclude that branding branding can be used to target sub-conscious desires that rest at a primal level. Positioning A marketing marketing strategy strategy that aims to make make a br bran and d occu occupy py a distin distinct ct positio  position n, rel relative ative  brands, , in the mind of the customer . Companies  Companies apply apply  this strategy  strategy either  to competing  competing brands    by emphasizing the disting distinguishing uishing  features of their brand (what it is, what it does and how, etc.) or they may try tocreate to create a suitable  suitable image (inexpensive or  premiu  premium m, utilitarian or luxu luxurio rious us,, entry entry-le -leve vell or highhigh-en end, d, etc.) etc.) th throu rough ghadvertising advertising. Once a brand is  positioned,  positio ned, it is very difficult to reposition reposition it without without destroying destroying its credibility. credibility. Also called product positioning.

Various authors have given different definition of Positioning. Some are:Beckman, Kurtz, Boonee “Product positioning refers to the consumer’s perception of a product’s attribute, use, quality & advantages & disadvantages in relation to competing brands.”

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Berkowitz, Kerlin, Rudelius “Product positioning refers to the place an offering occupies in the consumer’s mind on important attributes relative to competitive offerings.” Brand Positioning

It should be remembered that positioning is more a reflection of a product and that it stifles the rich meaning of the brand without taking into account all its potentialities. Positioning applies to the process of emphasizing the brands distinctive and motivating attributes in the light of competition. It is based on the analysis of response to the following four questions. POSITIONING •

Why? For whom? When? When? Whom?

Elements of Positioning

Evidence has shown that there are four distinct variables that affect the position of a given product. These are:a)

The product itself,

 b)

The company company behind it,

c)

The competition,

Product: - How importan importantt the product product is or what meaning meaning it has for the 1. The Product: consumer consu mer & how he relates to it. The fact that a product product involves better ingredients ingredients or proces processes ses is a matter matter of indiffe indifferenc rencee unless unless this kn knowl owledg edgee of offers fers distinc distinctt advantages to the consumer. 2. The Company: - A product comes from a company & every company has its own history. Generally, the stronger the companies profile the better the image of its  products.  produc ts. For instance, instance, consumers consumers may perceive perceive a better the image image of a product if it comes from a reputed house like Tata’s.

Competition: - Product positioning positioning is invariably invariably done in relation to various 3. The Competition competitive offerings. In most cases, the consumers have a tendency to judge a  productt in comparison  produc comparison to the dominant dominant brand, brand, e.g., all photocopiers photocopiers are compared compared with Modi Xerox, all PCs with HCL, toothpastes with Colgate & so on. Leading  brand enjoys enjoys some some edge edge over over others. others. 4. The Consumer: Consumer: - It should be reiterated that positioning positioning is essentially based on consumer perception rather than factual evaluation. Hence, it becomes necessary to

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examine how the consumer views a product. Here, it becomes necessary to examine how the consumer views a product. Here, the consumer’s self-perception comes into play along with his cognitive & connotative factors.

TOP BRANDS

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PROVOGUE

The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited. Provogue stands for fashion and not pure apparel; this in itself makes it the leader instantly. Its designs are cutting edge and radical, which epitomizes its mantra “Redefining Fashion”. The Company launched the fashion brand ‘Provogue’ in March 1998 and within a short span of seven (7) years; it has established a strong brand identity in the minds of the urban urb an consum consumer er.. The Compan Company’ y’ss philos philosoph ophy y of ‘creating ‘creating trends’ trends’ in fashion fashion,, an aggressive marketing strategy, coupled with high profile promotional events and its distrib dis tributio ution n strategy strategy of retailin retailing g through through selectiv selectivee stores stores and malls has resulte resulted d in Provogue being now positioned as a leading fashion brand in India. The Company acquired from Acme Global the entire business of export of textile; textile machinery and textile related chemicals and operates these businesses as its division under the name Acme Global. •

Louis Philippe

Louis Philipp Louis Philippe's e's range range of su superb perbly ly crafted crafted garmen garments ts makes makes an exclusiv exclusivee fashion fashion statement stateme nt that is accepted as a status symbol, symbol, recognized by its distinctive icon — 'The Upper Crest'.

•

•

Van Heusen

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Van Heusen has redefined corporate attire through continuous product innovation and exclusive collections.

•

Allen Solly

Allen Solly popularized the Friday dressing concept in India. It has won the IFA Images 2001 'Best Brand Award' in the readymade menswear apparel category.

•

Peter England

This mid-segment shirt has effectively penetrated the mini metros. It has won several awards, including 'Shirt of the Year 2000' and 'India's most admired menswear brands 2001'.

LEVI’S FASHION BRAND

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In the list of topLevi market players in the fashion was industry, theafter most Levis fashion brand. Strauss & Co. (LS&CO) named itsshining foundername LeviisStrauss in 1853. Since then the journey of its success has been going on. It has cast its spell in more than 110 countries. Levis as leading jeans brand has entered into the international  parlance and flooding flooding the market with its designer designer apparels. apparels. Levis products products are marketed under various brand names like Levis, Dockers and Levi Strauss Signature. ITC’S LIFESTYLE RETAILING

ITC’s Lifestyl ITC’ Lifestylee Retailin Retailing g Busines Businesss Divisio Division n has establis established hed a nationw nationwide ide retailing retailing  presence through through its Wills Wills Lifestyle chain of exclusive exclusive specialty stores. stores. Wills Lifestyle, Lifestyle, the fashion fashion destinatio destination, n, of offers fers a tempting tempting choice of Wills Classic Classic work work wear, wear, Wills Sport relaxed wear, Wills Clublife evening wear, wear, fashion fashion accessories accessories and Essenza Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products for men and women. women. Wills Lifesty Lifestyle le has also introduce introduced d Wills Signatu Signature re – design designer er wear  wear  designed by the leading designers of the country.

UNITED COLORS OF BENETTON

The United Colors of Benetton (UCB) is changing hues in India. Flush with plans of  capturing 80,000 sq ft of retail space across the country before the year ends, coupled with a stringent fabrication and merchandising exercise, United Colors of Benetton is aiming to shore up volume and value sales, while also presenting a larger-than-life facet of its retail look.

LIMITATION LIMITA TION OF RESEARCH

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This research was subjected to following limitation: The survey cannot be termed 100% accurate due to lack of time and time and cost only 200 users had been studied. Thus the scope of study is limited in terms of no. of respondent.

•

The lack of candidness of respondent towards answering the questionnaire in few cases may have reduced the accuracy of survey to some extent. •

Despite the unbiased opinion and efforts Despite efforts the possibility of technical exceptions exceptions cannot be ruled out. •

•

The statistical analysis with various various automated automated tools might have computational computational

errors.

CHAPTER II

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DATA ANALYSIS AND INTERPRETATIONS RESEARCH FINDINGS Which of the following fashion brands are you aware of?

Data Analysis

Above data shows that allen solly, color plus, provogue, park avenue, van heusen, peter  England, arrow are the brands that are successful in creating awareness among the customer. The awareness level of Dockers, zodiac, Louis philippe, Excalibur is at the moderate level. The brands like like parx, blackberry’ blackberry’s, s, proline they need need to concentrate on marketing marketing of  there brands.  

Which of the following brands of Denim are you aware of?

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Data Analysis

Above graph shows that the awareness level of Lee, Levis, Pepe Monte Carlo, Lee cooper is higher than Dockers Numero Uno and wrangler 

How often do you change your readymade garments?

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Data Analysis

The above graph shows that 78% of respondent frequently change their readymade garments and 22% respondent occasionally change their garments. How often do you purchase clothes?

Data Analysis

Above graph indicate that normally people purchase clothes monthly or once in 3 months. Factors you consider while purchasing a readymade readymade garments

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Rank Them According Your Priority:

Cloth Type

4

Color

3

Brand

5

Fashion/Trend

6

Price

2

Availability

1

Data Analysis

Above graph indicate that fashion/trend, fashion/trend, brand cloth type and color these are the major  factor which is considered while purchasing clothes.

Listed below are statements about shopping behavior for clothes and clothing fashions. Please check one box for each statement to indicate the extent to which

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you agree or disagree with each statement.

Agree

Neither   agree Nor  Disagree

Disagree

I buy clothes I like, regardless regardless of  current fashion.

0

20

180

I bu buy y ne new w fa fash shio ion n lo look okss on only ly when they are well accepted.

104

16

84

I am not not as conc concer erne ned d abou aboutt fash fashio ion n as I am ab abou outt mode modest st

56

24

120

I prefer fer to buy well-k ll-kn nown designer design er labels rather than take a chance on something somethin g new.

36

16

148

I am confident that I have good taste in clothing.

60

36

104

 prices and and wearability wearability..

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This graph indicates that people like to buy new fashionable fashionable cloths and which are well accepted no one like to buy clothes which are out of fashion. There are very few people who would like to buy clothes of well known designers Who influence you to purchase the brand?

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In which media you have seen the advertisement of these brands?

The above graph shows that TV and magazine are the two main advertising tool which is us used ed by most most of th thee or orga gani niza zati tion on be beca caus usee th thes esee are are th thee ef effe fect ctiv ivee way way of  advertisement. And now a day’s companies are using social networking site for the online advertisement. Which of the following would affect you choice of readymade garments?

This graph indicate that promotional campaigns and cloth type which affecting the choice of readymade garment

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When you buy a readymade garment during a promotional campaign, will you by the product after the campaign?

Which media do you prefer more for fashion ads (in order of your preference)?

Above graph graph shows that Tv and Magzine are the two main tool used for advertisement advertisement  because in TV ads the audio visual effect create good impression impression on the mind of  customer.

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If TV, is it because

If magazine, is it because of 

Above graph shows that the organization use magazine ad because it is a good source of  latest fashion trends, overall presentation and longevity of message.

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If Newspaper / pamphlets, if it because of 

 News paper advertisement advertisement is inexpensive inexpensive source of information information it cover huge audience audience and this is available in many language.

If hoardings, if it because of 

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CHAPTER III FINDINGS •

Br Bran andi ding ng ha hass been been found found to be a key key in fo form rmati ation on of po posi sitiv tivee att attitu itudes des to towa wards rds  products,  produ cts, especially especially those those involving involving low-levels low-levels of consume consumerr involvement. involvement.

•

Company Comp any should study purchasing purchasing power, life styles, styles, buying habits, optimal usage level.

•

The study shows that people only prefer latest trends in cloths.

•

The study shows shows that most of the companies have not entered in rural market. Knowing the huge size of rural population of India it is natural that the rural market is attractive to marketers.

•

Companies must have to concentrate on the brand equity and brand loyalty.

•

There are some brands whose awareness level is low as compare to others so they need concentrate on the promotion aspect to increase the awareness

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CHAPTER-IV CONCLUSIONS Conclusions

Readymade garment is really becoming big business. The domestic market too presents immense opportunities with consumer spending on the rise and organized retailing growing. But should a garment player go global or sell at home? Some players such as Raymond and Zodiac Clothing have chosen to be aggressive in  both markets. markets. Even as they plan to improve improve their retail presence presence over the next three years, both are expanding their manufacturing facilities in Bangalore to cater to the expected rise in international demand. Interestingly,, major export players such as Ambattur Interestingly Ambattur Clothing Clothing (Color Plus) and Acme Clothing (Provogue) have, in the past, placed their bet on the domestic market. These companies quickly managed to give bigger players a run for their money. But, as Color Col or Plus Plus discov discovered ered,, further further growth growth could could come come only only from a wider wider distrib distributio ution n network, which needs deep pockets. Raymond stepped in and acquired the brand. Operating in the domestic market poses an entirely different set of challenges from that of the export market. It requires more than manufacturing expertise and a heightened fashion-consciousness. Established names, however, do not have it easy either. The entry of international  brands such such as Tommy Tommy Hilfiger Hilfiger into the Indian market market is likely to be followed by more  players. Competition is likely to hot up and keep domestic players on their toes. The retail landscape is changing, and the traditional distribution strategy of apparel players is in for an overhaul. Figuring out which price point to operate in is yet another challenge for  an apparel maker. Challenging, but interesting, times are ahead for the readymade garment industry. industry. Apparel Appar el retail retailer ers, s, with with little little retail retail exper expertis tise, e, had to bu build ild their their own own netw network ork,, at considerable expense. The rapid growth in recent years of various retail formats, such as departmental stores and malls, has given a fillip to the industry. A bo boos ostt to the indus industry try woul would d come come from from all allow owing ing fo forei reign gn di direc rectt invest investme ment nt in retail ret ailing ing,, which which woul would d increa increase se space space co cons nside iderab rably ly an and d also also br bring ing intern internati ation onal al  practices to India. This may also encourage newer entrants, once the distribution distribution costs decline. Private labels tend to do well during recessions. recessions. Retailers enjoy better margins margins on their  own labels, and are also able to price them lower.

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Players such as Madura Garments, which have a presence in the segment through Allen Solly, believe that once women try out private labels and get more accustomed to Western wear, they are likely to upgrade to a more expensive brand. But players may still find it tough to cater to this market. They would have to move towards tow ards a low-mar low-margin gin,, volume volume-dri -driven ven busines business. s. This This would would also need need a far larger  larger  distribution network than what exists today. Few retail formats in India operate on a truly large scale. Giants such as Wal-Mart and Carrefour, which have the ability to drive volumes, are what the industry would need.

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BIBLIOGRAPHY Books Referred: 

Koth Ko thari ari C. R.



International Limited, Fifth Edition Kotl Ko tler er Phili Philip p & Kelle Kellerr Kevin Kevin.. MARK MARKET ETIN ING G MANA MANAGE GEME MENT NT:: Pears Pearson on

(2005 (2005))

‘R ‘RES ESEA EARC RCH H METH METHOD ODOL OLOG OGY’ Y’

New New Age Age

Prentice Hall, New Delhi, 2006 

Parry, Mark E., STRATEG STRATEGIC IC MARKETING MARKETING MANAGEMENT: MANAGEMENT: Means-End Means-End Approach, New Delhi, McGraw-Hill, 2002



Saxena Sax ena Rajan, Rajan, MARKE MARKETIN TING G MANAG MANAGEME EMENT: NT: Tata Tata Mcgraw Mcgraw,, New Delhi, Delhi, 2006



Kotler Philip, KOTLER ON MARKETING: Free Press, New York 

Websites:-  www.koutons.com www.peterengland.com www.scribd.com www.allencooper.net www.johnplayer.com www.cottoncounty.com

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ANNEXURE

QUESTIONNAIRE (Tick whichever applicable) 1. Which Which of the the followi following ng fashio fashion n brands brands are you you aware aware of? of? 



Levi’s Plus 



Parx



Dockers



Blackberry’s







Van Heusen Excalibur 

Peter

 Arrow



Provogue  philippee  philipp

Zodiac Louis

Park Avenue



England

Others(please specify)

2. Which Which of the the followi following ng brand brandss of Denim Denim are are you aware aware of? of? 

Lee



Black 



Levis Strauss



Wrangler 



Numero Uno



Pepe



Monte Carlo Lites  Lee Cooper 



Others (please specify)

3. How often often do do you chang changee your your readyma readymade de garme garments? nts?  

Frequently



Occasionally

Never 

4. How often often do do you you purchas purchasee clothe clothes? s?   Once a week    Once in 3 months

 

Color 

once in a month

once in 6 months

5. Factors you consider consider while while purchasing purchasing a readymade readymade garments? garments?

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RANK THEM ACCORDING YOUR PRIORITY: Cloth 

type



Color 



Fashion/Trend



Price

 Availability

Brand

6. Li Liste sted d belo below w are state stateme ments nts about about shop shoppi ping ng be behav havio iorr fo forr cl clot othes hes and cl clot othin hing g fashions. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement. Agree

Neither   Agree  Nor  Disagree

I bu buy y clot clothe hess I like like,, re rega gard rdle less ss of cu curr rren entt fashion. I buy new fashion looks only when they are well accepted. I am not as concerned about fashion as I am about modest prices and wearability. I prefer prefer to bu buy y wellwell-kn know own n desig designer ner labels labels rather than take a chance on something new. I am confident that I have good taste in clothing.

7. Who influen influence ce you you to purc purchas hasee the brand? brand? 

Family



Friends



Self 



Other 

 Advertisement

8. In which which media media you you have have seen the advertisem advertisement ent of of these brands 

TV



Magazine



Newspaper 



Internet

Disagree

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

Other 

9. Which of the following following would affect you you choice choice of readymad readymadee garments? garments?  No effective effective at all

Affecti Affecting ng the most most

Cloth Type Price Promotional campaigns

10. When you buy a readymade readymade garment during a promotional promotional campaign, campaign, will you by the product after the campaign? Yes



Likely



Don’t Know



I will most likely written over to my previous brand



I will switch over to previous brand



11 11.. Which media do you prefer prefer more for fashion ads (in order of your preference)? 

TV



Magazines



Newspaper / pamphlets



Radio Hoardings / bill boards



Entertainment value

 Any

other (specify)

12. If TV, TV, is it because 

It is an audio - visual medium



Overall presentation

13. If magazine, magazine, is it because because of 

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

It is a good source of latest trends

Overall



Longevity of message

 Any

presentation

other (specify)

14. If Newspaper Newspaper / pamphlets, pamphlets, if it because of  of  

Inexpensive source of Information

 Available

in many languages



Mass coverage

 Any

other (specify)

15. If Radio, Radio, Is it because because  Audio medium





 Any

Medium for travelers and car riders

Entertainment value other (specify)

16. If Hoardings, Hoardings, is it because because 

It is an attention gaining medium





Colorful and attractive

 Any

Conveys direct message other (specify)