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RESEARCH PROJECT REPORTOn

FACTORS AFFECTING THE PACKAGING, BRANDINGAND PRICING STRATEGIES IN RETAIL AND

WHOLESALE MARKETS FOR FMCG PRODUCTS IN

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INDE?

PAGE NO3C'r!"$"+a!'

Pr'$a+'

A+1(ow#'d-'&'(!

Ca!'r

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mind space of the customer. A brand once established in the mind of the customer

becomes indelible when customer identifies itself with that particular Brand.

Branding is an effective marketing strategy tool that has been used with frequent success

in the past. Branding can be an effective and powerful tool for all types of business

organizations. f brand owners use their product correctly, the payoffs can be substantial.

!owever, if brands are mismanaged, the results can be damaging.

"his report is aimed to investigate the effect of brand on consumer buying behavior. !ow

much consumers are prepared to pay for branded products, how important they consider

price, brand or other factors during their purchasing decisions. "he #eport aimed at

comprehensive literature review on branding, brand loyalty, brand awareness, brand

equity and brand perceptions, price sensitivity and willingness to pay.

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CHAPTER

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CHAPTER 52 INTRODUCTION

ntroduction

$Brands are like human beings. "hey 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 relationships with them and become their companions for life.

'uch brands, make their parents %organization or corporate& proud of them. "he best

brands are the ones who help in forming and sustaining strong long term $parent(brand(

people) relationships. "hese brands form the potential for present growth and future

e*pansion. "hey help the organizations conquer peaks at the time of booms and stay

afloat and swim at times of depression.)

+e come across a number of brands in our daily lives. Our morning starts with using a

toothpaste %olgate, -epsodent or lose(up&, using a bathing soap %u*, /airglow or

inthol& and shampoo %linic All lear or 0atika&, wearing clothes % Allen 'olly, evi1s

or #aymonds&, breakfast bread %Britannia or 2odern& and butter %Amul& or 3am %4issan&,

lunch and dinner %5ature /resh or -illsbury flour and 'afal vegetables&, morning and

evening tea and coffee %"etley, 5escafe or Bru&, going out in a car %!yundai 'antro,

!onda Accord or 2ercedes Benz&.

"alking on the cell phone %2otorola, 5okia, 'iemens or 'amsung&, watching television in

the evening %G, 'ony or -hilips& or listening to music %-hilips or Apple& etc. But how

often do we think of what all a company does to put a positive imprint %fight for a shelf

space& in the mind of the customer6

"oday nearly all the companies are focusing more and more on building strong brands.

"he concept of brand equity and its management has come to the fore like never before.

2ore and more companies are refocusing on select strong brands.

"his pro3ect 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

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branding, branding on the web, branding in mergers and acquisitions etc. e*amples have

been given and cases discussed at every suitable point to bring out an application oriented

understanding of $building and managing brands).

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T' Co&'!"!"/' Ad/a(!a-' o$ Bra(d Lo0a#!0

"here is a palpable correlation between the efficient branding of a product or service, and

the display of brand loyalty in consumer purchasing patterns. n this instance, loyalty is

defined as a deeply held commitment to re-buy or re-patronize a preferred

product/service consistently in the future, thereby causing repetitive same-brand or

same brand-set purchasing, despite situational influences and marketing 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. t now becomes clear that a modern day marketer1s

principal ob3ective is to build sustainable forms of loyalty between a 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 !t occurs because the consumer perceives that the brand

o"ers the right product #eatures, image, or level o# $uality at the right

price %onsumer behavior is habitual because habits are sa#e and

#amiliar !n order to create brand loyalty, advertisers must brea&consumer habits, help them ac$uire ne habits, and rein#orce those

habits by reminding consumers o# the value o# their purchase and

encourage them to continue purchasing those products in the #uture

"he image surrounding a company7s brand is the principal source of its competitive

advantage and is therefore a valuable strategic asset. 8nfortunately, many companies are

not adept at disseminating a strong, clear message that not only distinguishes their brand

from the competitors7, but distinguishes it in a memorable and positive manner. "he

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. n fact, a company

should view its brand to be not 3ust a product or service, but as an overall brand image

that defines a company1s philosophies. A brand needs more than identity9 it needs a

(

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personality. :ust like a person without attention(grabbing characteristics, a brand with no

personality can easily be passed right over. A strong symbol or company logo can also

help to generate brand loyalty by making it quickly identifiable.

U(d'rs!a(d"(- Co(s%&'r B%0"(- B'a/"or

Definition

onsumer behavior refers to the mental and emotional process and the observable

behavior of consumers during searching, purchasing and post consumption of a product

or service

onsumer behavior involves study of how people buy, what they buy, when they buy and

why they buy. t blends the elements from psychology, sociology, socio psychology,

anthropology and economics. t also tries to assess the influence on the consumer from

groups such as family, friends, reference groups and society in general.

Buyer behavior has two aspects; the final purchase activity visible to any observer and

the detailed or short decision process that may involve the interplay of a number of

comple* variables not visible to anyone.

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Fa+!ors A$$'+!"(- Co(s%&'r B%0"(- B'a/"or

onsumer buying behavior is influenced by the ma3or three factors;

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herself@ himself and the e*tent to which that person assumes many values, attitudes or

behavior of group members. #eference groups can be family, school or college, work

group, club membership, citizenship etc.

#eference 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

behavior but also socially unacceptable and even personal destructive behavior. /or

e*ample, if fresher student 3oins a college @ university, he@she will meet different people

and form a group, in that group there can be behavior patterns of values, for e*ample

style of clothing, handsets which most of group member prefer or even destructive

behavior such as e*cessive consumption of alcohol, use of harmful and addictive drugs

etc. 'o, according to how an individual references him @ her to that particular reference

group, this will influence and change his@her buying behavior.

63 -sychological /actors

"hese are internal to an individual and generate forces within that influence her@his

purchase behavior. "he ma3or forces include motives, perception, learning, attitude and

personality.

?*ample;

Attitude is an enduring organization of motivational, emotional, perceptual and cognitive

processes with respect to some aspect of our environment. onsumers form attitude

towards a brand on the basis of their beliefs about the brand. /or e*ample, consumers of

'ony products might have the belief that the products offered by 'ony are durable9 this

will influence those customers to buy 'ony products due to this attitude towards the

brand.

1+

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;3 -ersonal /actors

"hese include those aspects that are unique to a person and influence purchase behavior.

"hese factors include demographic factors, lifestyle, and situational factors.

?*ample;

ifestyle is an indicator of how people live and e*press themselves on the basis of their

activities, interests, and opinions. ifestyle 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 with life and living and themselves. "his is influenced

by demographic factors and personality.

?.g. ( A ?O or 2anager is likely to buy more formal clothes, ties and shoes or -As

and less informal clothes like 3eans as compared to a 2echanic or ivil engineer. 'o

according to their lifestyle and profession, the buying behavior of people differs from one

another.

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Co(s%&'r B%0"(- D'+"s"o( Pro+'ss

onsumer 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.

onsumer decision making process generally involves five stages;

A. -roblem #ecognition

-urchase decision making process begins when a buyer becomes aware of an unsatisfied

need or problem. "his 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.

"here are several situations that can cause problem recognition, these include;

epletion of stock

issatisfaction with goods in stock

?nvironmental hanges

hange in /inancial 'ituation

2arketer nitiated Activities

t1s when a person recognizes that she cannot make a call from her mobile phone that1s

when she recognizes that her phone has been damaged i.e. the phone has hardware

problems and needs to be repaired or buying a new piece.

B. nformation 'earch

After the consumer has recognized the need, he @ she will try to find the means to solve

that need. /irst he will recall how he used to solve such kind of a problem in the past, this

is called nominal decision making. 'econdly, a consumer will try to solve the problem by

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asking a friend or goes to the market to seek advice for which product will best serve his

need, this is called limited decision making.

'ources of information include;

-ersonal sources

ommercial 'ources

-ublic sources

-ersonal e*perience

. Alternatives ?valuation

onsumers1 evaluates criteria refer to various dimension9 features, characteristics and

benefits that a consumer desires to solve a certain problem. -roduct features and its

benefit is what influence consumer to prefer that particular product. "he 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.

. -urchase Action

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

#etail outlet image and its location are important. onsumer usually prefers a nearby

retail outlet for minor shopping and they can willingly go to a far away store when they

purchase items which are of higher values and which involve higher sensitive purchase

decision. After selecting where to buy and what to buy, the consumer completes the finalstep of transaction by either cash or credit.

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?. -ost(-urchase Actions

onsumer favorable post(purchase evaluation leads to satisfaction. 'atisfaction with the

purchase is basically a function of the initial performance level e*pectation and perceived

performance relative to those e*pectations. onsumer tends to evaluate their wisdom on

the purchase of that particular product. "his can result to consumer e*periencing post

purchase dissatisfaction. f the consumer1s perceived performance level is below

e*pectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so

the brand and@ or the outlet will not be considered by the consumer in the future

purchases. "his might cause the consumer to initiate complaint behavior and spread

negative word(of(mouth concerning that particular product.

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63; Bra(d"(-s I($#%'(+' o( Co(s%&'r P%r+as"(- B'a/"or

"he preceding section of this literature reviewed has sought to define the term branding

and e*plain its functions and values as an instrumental marketing tool used in attaining

differential and competitive advantage.

"he following section of this literature review will seek to enlighten the impact branding

has on the consumer decision(making process.

/irst however, one must gain clear insight into the definition of consumer buying

behavior in order to understand the impact branding has on it. n defining $consumer

buying behavior), one may refer to Assael %

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onsumers who are described as displaying comple* buying behavior will e*pand their

beliefs regarding a particular product as a starting point. "his stage will eventually lead

them to develop positive attitudes regarding the product. "hese intermediary stages lead

them to the final stage of their behavioral pattern, where they consciously make the

choice of purchasing the product. #eferring to the Assael1s model9 one will notice this

type of consumer engages in highly involved purchasing e*periences being fully aware of

the range of brands available and their levels of differentiation.

Assael %

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0ariety(seekers are the last behavioral type contained in Assael1s %

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"he model1s core assumption lies in that the key to determining behavior e*hibited by

consumers is to fully understand the consumer thought process. "he !oward('heth

model illustrates that cognitive decision(making is the process in which consumers

mentally process information that influences his or her selection of brands.

63;35 I&a+! o( T' Co(s%&'r L'ar("(- Pro+'ss

At its most basic definition, one can define the consumer learning process as being a time

period in which a customer is heavily e*posed to the branding process of a product or

service. "he 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.

/or marketers, branding has a vital effect on the learning process, because it is self(

growing. Once consumers start to purchase product, others will vicariously learn from

them. 0icarious learning is when consumers begin to copy the behavioral patterns of their

peers by making changes in their own lives to reflect what they have $vicariously) learnt.

n searching for a more academic view on consumer learning, one can understand the

process as modifications to a consumer1s behavioral patterns that are the direct

consequence of either past e*periences or information gathered during all aspects of the

purchase decision(making process. "hese modifications are caused by information that

has essentially been saved as a set of meaningful associations in the consumer1s mind.

"hese 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. "hese

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 e*posed to

during their individual learning process. "his is ultimately, what will shape their views

and attitudes in regards to brands.

1*

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t has been found that the learning process discussed above acts as a catalyst in creating

emotional and evaluating responses. "hese responses are embedded in the consumer1s

memory span, which will be recalled when faced with a purchase decision(making

process. "hus, understanding the learning process is the key to marketers who seek to

efficiently use promotional methods to influence consumers, because the imprints they

create in the mind of consumer will later on be recalled when selecting a product or

brand.

63;36 I&a+! o( Co(s%&'rs P'r+'!"o( o$ Bra(ds

One may refer to /o*all %

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increased, their purchase decision(making process will be influenced by their perception

of the brand in question.

"he perception of brands is crucial to both the marketer and the customer. f one

considers that frequency of purchases varies from consumer to consumer, one can

understand that the influence of perception is vital. By providing relevant information for

the consumer market, marketers enable the creation of symbolic links between the

consumer and the brand image. "hus, consumers will have the relevant tools needed to

distinguish between the brands on offer and therefore be persuaded in their selection. n

the event that a consumer is a new user with no product e*perience, he or she will not be

able to make relevant decisions based on the actual product. "hus, the brand image again,

becomes vital in directing the consumer to a specific product.

n order to better understand the relevance of branding on the consumer purchase

decision making process, four key factors that are responsible for directing a potential

consumer towards a particular brand are referred.

-erceived uality n time, consumer will have faith in a brand1s integrity

via their perceived quality of the brand in question

Building ?*cellent 'ervice +hen a company implements e*cellent after service

sales, this endorses the perceived quality of the brand

and facilitates activities in the pre and post purchase

moments of the decision(making process. As discussed

previously, this is key in the creation of loyal customers

'tanding Out in the onsumer1s By striving to differentiate one1s brand from another

companies hope to become embedded in the user1sculture and mind. "his is the most effective way to

insure consumers positively perceive the brand and

product. "his eventually leads to e*tremes forms of

competitive advantage

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nvesting in ifferential

2arkets

+hen one seeks to establish a brand, it is essential to

select a market in which it is possible to create

differentiation. Otherwise, the concepts of branding wil

not be possible.

Brands have a large impact on the perceived risks consumers associate with the consumer

purchase decision(making process. "here to be si* risks that are perceived by consumers

during all aspects of the decision(making process and further outlines how brands can

appease the consumer1s mind in regards to these perceived risks.

"he first perceived risk a consumer might encounter is one of a functional nature. "heconsumer might worry whether the product will meet his or her e*pectations. n the

creation of a trustworthy brand, marketers seek to raise the level of perceived quality in

order to specifically address this risk.

onsumer might also perceive a physical and@or psychological risk that might dissuade

them from continuing the purchasing decision(making process.

A fourth possible risk that might be perceived by the consumer is one of an economic

nature. -rice sensitive consumers will question whether the product is in fact properly

valued at the quoted asking price. Again, marketers will strive to counter this by

highlighting the perceived value of a product in the branding process. f properly done,

consumer can become price insensitive by forming a strong bond to a brand and therefore

isolating him or herself from competitors.

'ocially speaking, a fifth risk a consumer might perceived to be detrimental to the buying

process is whether his or her selection of a brand will cause embarrassment in a social

setting, amongst his or her peers. 2arketers address this issue in the creation of the brand

image. By emulating current market trends and fashions, marketers strive to identify and

differentiate their products as being the selected choice of revered people.

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.

Het another economic risk consumer might consider, is the opportunity cost of seeking

out alternative products, and should the selected one fail to satisfy their needs and wants.

#eflected in a loyal consumer base, is a brands ability to deliver on the satisfaction

guarantee. "hus, one can understand that branding is the key in addressing this issue in

the consumer1s mind.

I&a+! o( Co(s%&'rs A!!"!%d's Towards Bra(ds

An attitude can be considered to be either positive or negative, depending on the outcome

of their learning and evaluating process.

"he evaluation of consumer attitudes towards brands has quickly become a ma3or part in

conducting marketing research. "he development of positive attitudes towards brands can

lead to not only the sustaining of competitive advantage, but in the bettering of the

financial health of a company.

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Branding has been found to be a key in formation of positive attitudes towards products,

especially those involving low(levels of consumer involvement. !owever it has been

noted that there are factors that might negate the effects of the formation of positive

attitudes. One being that the effects of positive attitudes can dissipate 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 consumer1s positive attitudes towards the brand and

result in a non sale.

n considering attitudes towards brands, one must ponder whether these attitudes all

remain at a conscious level, or whether branding can instigate attitudes at a sub(conscious

level. 'igmund /reud1s theory that individuals are rarely aware of how their own

psychology shapes their visual behavioral patterns which suggests that at an unconscious

level, consumer might have beliefs that shape their attitudes towards products. By

acknowledging /reud1s theories, one can conclude that branding can be used to target

sub(conscious desires that rest at a primal level.

Pos"!"o("(-

0arious authors have given different definition of -ositioning. 'ome are;(

Beckman, 4urtz, Boonee

$-roduct positioning refers to the consumer1s perception of a product1s attribute, use,

quality I advantages I disadvantages in relation to competing brands.)

Berkowitz, 4erlin, #udelius

$-roduct positioning refers to the place an offering occupies in the consumer1s mind onimportant attributes relative to competitive offerings.)

Us'$%#('ss o$ Pos"!"o("(-

As competition intensifies I brands proliferate, consumers tend to differentiate between

brands in their own way. -ositioning is a conscious attempt on the part of the marketer to

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accentuate this natural tendency I in the process, impart a distinct identity to his own

brand to make it stand out among the competitors. "he basis on which this differentiation

is achieved reflects consumer preferences or attitudes. "he marketer, through his diverse

I coordinated actions, tries to influence this process.

"he concept of positioning is also important in various other aspects of the marketing

strategy. Once one is clear about the position one wants, the other marketing decisions

like product design, packaging, pricing, method of distribution, etc., become clearer.

63=36 Bra(d Pos"!"o("(-

t 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.

-ositioning applies to the process of emphasizing the brands distinctive and motivating

attributes in the light of competition.

t is based on the analysis of response to the following four questions.

-O'"O55G

+hy6

/or whom6

+hen6

Against whom6

E#'&'(!s o$ Pos"!"o("(-

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?vidence has shown that there are four distinct variables that affect the position of a

given product. "hese are;(

a& "he product itself,

b& "he company behind it,

c& "he competition,

53 "he -roduct; ( !ow important the product is or what meaning it has for the consumer

I how he relates to it. "he fact that a product involves better ingredients or processes

is a matter of indifference unless this knowledge offers distinct advantages to the

consumer.

63 "he ompany; ( A product comes from a company I every company has its own

history. Generally, the stronger the companies profile the better the image of its

products. /or instance, consumers may perceive a better the image of a product if it

comes from a reputed house like "ata1s.

;3 "he ompetition; ( -roduct positioning is invariably done in relation to various

competitive offerings. n most cases, the consumers have a tendency to 3udge a

product in comparison to the dominant brand, e.g., all photocopiers are compared

with 2odi Jero*, all -s with !, toothpastes with olgate I so on. eading

brand en3oys some edge over others.

=3 "he onsumer; ( t should be reiterated that positioning is essentially based on

consumer perception rather than factual evaluation. !ence, it becomes necessary to

e*amine how the consumer views a product. !ere, it becomes necessary to e*amine how

the consumer views a product. !ere, the consumer1s self(perception comes into play

along with his cognitive I connotative factors.

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CHAPTER< 6

LITERATURE RE4IEW

2(

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CHAPTER 62 LITERATURE RE4IEW

635 U(d'rs!a(d"(- Bra(d"(-

B#A5

"he word $Brand) owes its origin to the 5orwegian word $brand) which means to burn.

/armers used to put some identification mark on the body of the livestock to distinguish

their possession. -roducts are what companies make, but customers buy brands.

"herefore marketers resorted to branding in order to distinguish their offerings from

similar products and services provided by their competitors. Additionally, it carries an

inherent assurance to the customers that the quality of a purchase will be similar to earlier

purchases of the same brand.

A brand is a name, term, sign, symbol or design or a combination of one seller or a

group of sellers and to differentiate them from those of competitors.

B#A55G

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 %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.&.

2)

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Brand building is a conscious customer satisfaction orientation process. "he brand owner

tries to retain customers to its fold over their competitors by a mi* of hardware software

because when a customer feels satisfied he she develop a kind of loyalty for the same.

Kotler%

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/rom the consumers1 perspective, brand names are as fundamental as the product itself in

the sense that they simplify the purchasing process, guarantee quality and at times, form

as a basis of self(e*pression. !ence, should a company market a brand name as nothing

more than

$!ust a name)9 it would be missing the entire purpose of product branding. "he challenge

lies in developing a deep set of meanings for the brand. Once a target market segment can

visualize all si* dimensions of the brand, it will have established a strong rapport within

the consumers1 purchase decision(making process.

63535 H"s!or0 o$ Bra(d"(-

Brands in the field of marketing, originated in the

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profit organizations and even individuals. Branding became ubiquitous. 2any of us also

know that -roctor I Gamble and other consumer product companies began branding

their products in earnest in the mid(to(late

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+hat is more interesting to me are underlying needs from which branding originated; to

insure honesty, provide quality assurance, identify source or ownership, hold producers

responsible, differentiate, as a form of identification and to create emotional bonding.

nterestingly, people value brands for many other same reasons today. learly, history

provides some insight and perspective on modern day branding.

63536 Bra(d"(- "( Toda0s Mar1'!s

A central function of branding is the facilitation of the consumer choice process. ue to

the comple*ity of having to select a product amongst thousands of similar offerings,

consumers will instinctively attempt to simplify their choice process by selecting brands

that have satisfied them in the past. "hus, one can conclude that pleasant past e*periences

is highly conducive to 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 outinformation 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

linked to previous e*periences, but can alternatively be formed by embedded perceptions.

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A consumer might strongly favour a brand with no prior purchasing e*perience. "his type

of consumer behavior is based on stimulus provided by direct e*posure to advertising

campaigns, a company1s -# efforts or even a high concentration of local distribution in

an area that is in close pro*imity to a consumer.

n terms of companies1 views on branding, it can induce the natural differentiation of

their offerings, which ultimately, will produce a state of competitive advantage.

ifferentiation can only allow for competitive advantage if the cost of differentiating is

significantly lower than the revenue earned by the sales. ifferential advantage allows

companies to showcase their offer in respects to other competitors in the same

marketplace.

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6353; I&or!a(+' o$ Bra(d"(-

-rinciple 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. t is not 3ust 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 7Jero*7. "hough it is a company7s name, the

act of photocopying is termed as 7Jero*ing7.

I&or!a(+' o$ Bra(d"(- "( B%s"('ss

/rom 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. "he 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 consumer7s

market, may it be a simple label, a family of products or an umbrella brand. -eople can

also have a personal brand. "he 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 7from the makers of M

brand7, well this is another advantage of branding. +hen a business who owns an already

famous brand wants to launch a new brand in the market, they can use the pre(earned

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goodwill and reputation for the new launch. "he advantage is that, people are bound to

purchase the new products out of curiosity.

mportance of Branding in Mar1'!"(-

2arketing primarily involves the study of demand in a market and creating a response in

the form of supply. n the field ofmarketing,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, it

also becomes possible for the marketing people to generate intelligence information

about the brands popularity and also what people e*actly want from the brand owning

company. As a result of a brand loyal group of consumers, it also becomes easier for

marketing department to asses regular and promised demand. Apart from that, schemes

such as free gifts and discounts often boost the sales as the brand is an important icon of

the market.

I&or!a(+' o$ Bra(d"(- "( Ad/'r!"s"(-

Advertisingis often considered to be a part of marketing however9 branding a particular

product helps the advertisers to provide catchy logos and advertisements. 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, the consumers are already well aware of the product, its identity and nature.

n short, the importance of branding can be summed up in simple words 7successful

branding is a process that generates revenue that cannot be counted, it creates a reputation

that is felt not seen, and it is an asset that one cannot show on a balance sheet.

35

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D'/'#o&'(! o$ Bra(d E%"!0

"he amount of clout controlled by different brands will vary. 'ome are deeply embedded

in global culture and are thus, highly recognizable, whilst other are virtually unknown to

consumers. +hen attempting to place a value on a brand, one refers to $brand equity).

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8sing the financial perspective, one measures brand equity by determining how much

more consumers are willing to pay in direct relation to the brand name. "his gives

marketers essential insight into the financial value of the brand. +hen viewing brand

equity from this perspective, one must naturally consider overhead, such as costs of

advertising.

8sing the consumer(based perspective entails considering how the attitude strength of

consumers is directly influenced by the brand name. "his perspective operates under the

assumption that the consumer has had e*tensive e*perience with the product in question.

"he 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 company1s market share and the allowance of higher pricing policies.

3(

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CHAPTER< ;

METHODOLOG

3)

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O.'+!"/'s

mportance of understanding branding and its impact on modern day markets is

vital to the health and growth of most industries. "he aim of this report is to put

into perspective the functional values of branding as well as assess its role in the

consumer purchase decision(making process.

8nderstanding the concepts of branding and consumer behavior.

"o study the effect of brands on consumer buying behavior in relation to

#eadymade garments.

"o analyze the branding strategies adopted by some of the companies in thereadymade garments to woo the consumers into buying their products.

"o do a comparative study of the branding strategies adopted by the companies in

the readymade garment.

n order to fully answer this research question, the following ob3ectives have been

set;

N 'et a valid and sustainable research question in order to achieve a non(bias

and accurate understanding on the topic in question9

N -resent the key concepts behind branding, its values and its usage in

modern day marketing campaigns by reviewing current literature

pertaining to the sub3ect matter9

N etermine whether a correlation between consumer identities and

perceived brand identities is present9

N etermine the impact of branding on the consumer purchase decision(

making process.

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CHAPTER ;2 METHODOLOG

;35 I(!rod%+!"o(

n order to understand the methodology used to compile this -ro3ect, this chapter is

included in order to clarify how an effective methodological philosophy can to contribute

the successful production of a un(bias and critically -ro3ect, as well as comprehend the

process underwent to reach the pertinent conclusion outlined in chapter L.

"his chapter also serves the purpose of 3ustifying and authenticating the research

procedures employed in order meet the set ob3ectives and answers the main research

question of this -ro3ect.

;36 R's'ar+ Aroa+

;3635 S'+o(dar0 Da!a

Articles in 5ewspapers, 2agazines and nternet

'tudy #eports from nternet

esk #esearch under the guidance of my guide

4+

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;3636 Pr"&ar0 Da!a

onsumer 'urvey on the effect of brands on their buying behaviour

;3; Da!a Co##'+!"o( Too#s

uestionnaire 'urvey

Books

nternet

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CHAPTER< =

Da!a a(a#0s"s a(d

"(!'rr'!a!"o(

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CHAPTER =2 FINDINGS ANALSIS

S'+o(dar0 R's'ar+ F"(d"(-s

onsumer Behavior is the study of the processes involved when individuals or groups

select, purchase, use, or dispose of products, services, ideas, or e*periences to satisfy

needs and desires. onsumers take many forms, ranging from an eight(year(old child

begging her mother for -okemon shoes to an e*ecutive in a large corporation deciding on

a multimillion(dollar computer system. "he items that are consumed can include

anything; Gucci handbags, a massage, democracy, rap music, or hoopster rebel ennis

#odman. 5eeds and desires to be satisfied range from hunger and thirst to love, status, or

even spiritual fulfillment. onsumer behavior is the study of the processes involved when

individuals or groups select, purchase, use, or dispose of products, services, ideas, or

e*periences to satisfy needs and desires.

A consumer may purchase, use, and @ or dispose of am product, but these functions may

be performed by different people. n addition, consumers may be thought of as role

players who need different products to help them play their various parts.

/ashion terminology is often used by consumers in overlapping ways. A style of apparel

is defined by distinctive attributes that distinguish it from others in its category, such as

different types of skirts9 a fashion is a style that has been accepted by many people9 high

fashion consists of new, e*pensive styles offered by upper(end designer. A trend is a

general direction that may lead to a fashion. 2erchandise classifications include designer,bridge, better, moderate, and budget prices.

/ashions tend to follow cycles. "he two e*tremes of fashion adoption known as

collective selection. -erspectives on motivations for adopting new styles include

psychological, economic, and sociological models of fashion.

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2arketing activities e*ert an enormous impact on individuals. onsumer behavior is

relevant to our understanding of the dynamics of popular culture.

"he nternet is transforming the way consumers interact with companies and with each

other. Online commerce allows us to locate obscure product from around the world, and

consumption communities provide forums for people to share opinions and product

recommendations. "he benefits are accompanied by potential problems, including the

loss of privacy.

"he field of consumer behavior is interdisciplinary9 it is composed of researchers from

many different fields who share an interest in how people interact with the marketplace.

"hese disciples can be categorized by the degree to which their focus is micro %the

individual consumer& versus macro %the consumer as a member of a group or of the larger

society&.

"here are many perspectives on consumer behavior, but research orientations can roughly

be divided into two approaches. "he positivist perspective emphasizes the ob3ectivity of

science and the consumer as a rational decision maker. "he interpretive perspective, in

contrast, stresses the sub3ective meaning of the consumer1s individual e*perience and the

idea that any behavior is sub3ect to multiple interpretations rather than to one single

e*planation.

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C%rr'(! C%s!o&'r Tr'(ds

2ale 'hopping !abits

2en are creatures of habit and find comfort in what is familiar to them less risk in

purchases.

#esearch shows that nearly DL per cent of male shoppers buy clothing at the e*act same

stores they went to three years back.

2en are not as adventurous in fashion as women and changes to wardrobe are far less

common.

2ale shoppers demand much more customer service.

2en tend to stay with a brand or a style and stick with it for several years less likely to

change.

2ale consumer loyalty makes it harder for new businesses or brands to attract new

customers.

#etail stores must create some kind of compelling reason for the male shopper to switch.

2ale oriented activities like putting greens in the sports department, computer games,

celebrity endorsements, all help men try a new store.

2arketer1s and brand retailer1s need to capitalize on this consumer trend. t1s no longer

3ust the metrose*ual or uber(se*ual man. t1s the future consumer and the buyer. n the

past men were ignored as mere buyers for their female counterparts. But as the market

evolves they will be the biggest buyers for themselves. Brands need to focus on this

consumer as he will be the ne*t big thing "he 2an.

"eenage -ower

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"eenage consumers influence the purchase patterns of many different age groups.

"hey are the offspring of the baby boomers and represent over

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+omen are being drawn to plots with warm and fuzzy endings men to macho

e*citement.

-eople are watching more newscasts and making a bigger effort to understand current

events.

2arketers and businesses alike need to focus on these consumer trends and make a

detailed outline as to how they need to innovate to cater to the masses and not 3ust a niche

crowd as that1s where the ma3or business lies and the brand image gets identity in the

marketplace.

nnovation, promotion and marketing a brand is essential, but only after one understands

the psychology of the marketplace and develops products that match it.

4(

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To Bra(ds I( I(d"a

PRO4OGUE

"he ompany was incorporated on 5ovember

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"he ompany acquired from Acme Global the entire business of e*port of te*tile9 te*tile

machinery and te*tile related chemicals and operates these businesses as its division

under the name Acme Global.

Lo%"s P"#"'

ouis -hilippe7s range of superbly crafted garments makes an e*clusive fashion statement

that is accepted as a status symbol, recognized by its distinctive icon R 7"he 8pper

rest7.

4a( H'%s'(

0an !eusen has redefined corporate attire through continuous product innovation and

e*clusive collections.

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A##'( So##0

Allen 'olly popularized the /riday dressing concept in ndia. t has won the /A mages

=FF< 7Best Brand Award7 in the readymade menswear apparel category.

P'!'r E(-#a(d

"his mid(segment shirt has effectively penetrated the mini metros. t has won severalawards, including 7'hirt of the Hear =FFF7 and 7ndia7s most admired menswear brands

=FF

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LE4IS FASHION BRAND

n the list of top market players in the fashion industry, the most shining name is evis

fashion brand. evi 'trauss I o. %'IO& was named after its founder evi 'trauss in

. 'ince then the 3ourney of its success has been going on. t has cast its spell in more

than

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ITCS LIFESTLE RETAILING

"1s ifestyle #etailing Business ivision has established a nationwide retailing

presence through its +ills ifestyle chain of e*clusive specialty stores. +ills ifestyle,

the fashion destination, offers a tempting choice of +ills lassic work wear, +ills 'port

rela*ed wear, +ills lublife evening wear, fashion accessories and ?ssenza i +ills an

e*clusive range of fine fragrances and bath I body care products for men and women.

+ills ifestyle has also introduced +ills 'ignature designer wear designed by the

leading designers of the country.

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UNITED COLORS OF BENETTON

"he 8nited olors of Benetton %8B& is changing hues in ndia. /lush with plans of

capturing CF,FFF sq ft of retail space across the country before the year ends, coupled

with a stringent fabrication and merchandising e*ercise, 8nited olors of Benetton is

aiming to shore up volume and value sales, while also presenting a larger(than(life facet

of its retail look.

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Pr"&ar0 R's'ar+ F"(d"(-s

W"+ o$ !' $o##ow"(- $as"o( .ra(ds ar' 0o% awar' o$

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W"+ o$ !' $o##ow"(- .ra(ds o$ D'("& ar' 0o% awar' o$

55

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How o$!'( do 0o% +a(-' 0o%r r'ad0&ad' -ar&'(!s

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How o$!'( do 0o% %r+as' +#o!'s

5(

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Fa+!ors 0o% +o(s"d'r w"#' %r+as"(- a r'ad0&ad' -ar&'(!s

RANK THEM ACCORDING OUR PRIORIT2

loth "ype P

olor >

Brand L

/ashion@"rend E

-rice =

Availability "(', "s "! .'+a%s' o$

6)

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I$ N'wsa'r a'!s, "$ "! .'+a%s' o$

6*

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CHAPTER< :

RECOMMENDATIONS

(+

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RECOMMENDATIONS

53 R%ra# &ar1'!3 4nowing the huge size of rural population of ndia it is natural that the

rural market is attractive to marketers. ompany should study purchasing power, life

styles, buying habits, optimal usage level. Brooke Bond for instance could capture the

cru* of the challenge when they started marketing #e < tea packets.

63 U(d'rs!a(d"(- ro#' o$ +"#dr'(3 2arketers should study the role of children in

buying decision as influencers and decision makers. !owever, the challenge remain

how does one communicate with children6 Advertising recalls being more in the case of

children(one way is clear but with every one trying to apply the same technique,

marketers will be gradually disillusioned with the method. -ossible ways of

circumventing this problem may be to market the product through schools or to use the

imitative tendencies of children by influencing their peers.

;3 D"s!r".%!"o(3 istribution cost are an increasing component of marketing cost

marketers will have to find ways through which one can achieve efficient as well as

economic distribution. One solution is 3oint distribution or by adopting direct marketing.

=3 Pa+1a-"(-3 +ith self(shopping gaining grounds and shelf space getting limited,

packaging becomes an important factor that marketers have to be concern about.

ompanies should identify the requirements and pack commodities according to

demand.

(1

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:3 C%s!o&'r s'r/"+' +a##'(-'3 n an increasingly competitive market, retention of a

customer is possible only through better service. 2arketers will require devoting to

more efforts to understand the customer view of quality and convenience. 2arketers

should do regular research to find this fact.

83 Ada!a!"o( !o ('w'r '(/"ro(&'(!3 As government withdraw entry barriers and

rela* restriction on merger or takeover many companies should install superior

technology and resort to merger acquisition route to make their unit more efficient.

93 Cr'a!"/"!0 a(d "((o/a!"o( "( o/'ra## &ar1'!"(- ro-ra&&'s3 2arketers have to

develop organizational structure style and functioning, which enable them to act fast

and bring in innovations in their marketing programmes.

(2

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CHAPTER< 8

CONCLUSIONS

(3

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CONCLUSIONS

#eadymade garment is really becoming big business. "he domestic market too presents

immense opportunities with consumer spending on the rise and organized retailinggrowing. But should a garment player go global or sell at home6

'ome players such as #aymond and Sodiac lothing have chosen to be aggressive in

both markets. ?ven as they plan to improve their retail presence over the ne*t three years,

both are e*panding their manufacturing facilities in Bangalore to cater to the e*pected

rise in international demand.

nterestingly, ma3or e*port players such as Ambattur lothing %olor -lus& and Acme

lothing %-rovogue& have, in the past, placed their bet on the domestic market.

"hese companies quickly managed to give bigger players a run for their money. But, as

olor -lus discovered, further growth could come only from a wider distribution

network, which needs deep pockets. #aymond stepped in and acquired the brand.

Operating in the domestic market poses an entirely different set of challenges from that of

the e*port market. t requires more than manufacturing e*pertise and a heightened

fashion(consciousness.

?stablished names, however, do not have it easy either. "he entry of international brands

such as "ommy !ilfiger into the ndian market is likely to be followed by more players.

ompetition is likely to hot up and keep domestic players on their toes. "he retail

landscape is changing, and the traditional distribution strategy of apparel players is in for

an overhaul. /iguring out which price point to operate in is yet another challenge for an

apparel maker. hallenging, but interesting, times are ahead for the readymade garment

industry.

Apparel retailers, with little retail e*pertise, had to build their own network, at

considerable e*pense. "he rapid growth in recent years of various retail formats, such as

departmental stores and malls, has given a fillip to the industry.

(4

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A boost to the industry would come from allowing foreign direct investment in retailing,

which would increase space considerably and also bring international practices to ndia.

"his may also encourage newer entrants, once the distribution costs decline.

-rivate labels tend to do well during recessions. #etailers en3oy better margins on their

own labels, and are also able to price them lower.

-layers such as 2adura Garments, which have a presence in the segment through Allen

'olly, believe that once women try out private labels and get more accustomed to +estern

wear, they are likely to upgrade to a more e*pensive brand.

But players may still find it tough to cater to this market. "hey would have to move

towards a low(margin, volume(driven business. "his would also need a far larger

distribution network than what e*ists today.

/ew retail formats in ndia operate on a truly large scale. Giants such as +al(2art and

arrefour, which have the ability to drive volumes, are what the industry would need.

(5

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L"&"!a!"o(s o$ !' Pro'+!

"his pro3ect is limited due to time constraint as it involves a lot of comple*

variables which require a detailed study over a period of time.

"he pro3ect did not cover the effect of branding on a very large scale. Only a

small population was studied, which may not be enough to show correct picture.

"he consumers were very reluctant to answer the question and the response may

be biased.

(6

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BIBLIOGRAPH

4evin ane 4eller %=FFP&, 'trategic Brand 2anagement, =ndedition, -earson ?ducation,

5ew elhi

onsumer Behavior, Eth?dition, by ean G.'ehiffman and eslic lazan 4anuk.

onsumer Behavior, Eth?dition, by !awkins, Best ad oney.

Brand ?quity %?conomic "imes&

www.google.com

www.wikipedia.com

www.levis.com

www.peterengland.com

www.raymonds.com

www.e*calibure.com

((

http://www.google.com/http://www.wikipedia.com/http://www.google.com/http://www.wikipedia.com/

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ANNE?URE

B#A55G I #?AH2A? GA#2?5"'

uestionnaire

%"ick whichever applicable&

O5"A" 5/O#2A"O5;

5ame;2r. 2s. TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

Address; TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

ity; TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT

-hone ;% O& TTTTTTTTTTTTTTTTTTTTTTTTT %#& TTTTTTTTTTTTTTTTTT

O"!?# 5/O#2A"O5;

Age;

2arital status; 'ingle 2arried

Occupation; %tick one&

Businessman ?*ecutive Government 'ervice Academics

!ouse(+ife 'elf(employed 'tudent

Others TTTTTTTTTTTTTTTTTTTTTTTT %-lease 'pecify&

()

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2onthly !ousehold ncome;

U

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P. !ow often do you purchase clothes6

Once a week Once in a month

Once in > months Once in E months

L. /actors you consider while purchasing a readymade garments6

#A54 "!?2 AO#5G HO8# -#O#"H;

loth type olor Brand

/ashion@"rend -rice Availability

E. isted below are statements about shopping behavior for clothes and clothing

fashions. -lease check one bo* for each statement to indicate the e*tent to which you

agree or disagree with each statement.

Agree 5either

Agree

5or

isagree

isagree

buy clothes like, regardless of current

fashion.

buy new fashion looks only when they are

well accepted.

am not as concerned about fashion as am

about modest prices and wearability.

)+

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prefer to buy well(known designer labels

rather than take a chance on something new.

am confident that have good taste in

clothing.

D. +ho influence you to purchase the brand6

/amily /riends Advertisement

'elf Other

C. n which media you have seen the advertisement of these brands 6

"0 2agazine

5ewspaper nternet

Other

. +hich of the following would affect you choice of readymade garments6

5o effective at all Affecting the most

loth "ype

-rice

-romotional campaigns

)1

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