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PROJECT REPORT

ON

EFFECT OF BRANDING ON CONSUMER BUYINGBEHAVIOR - A STUDY IN RELATION TO FASHION

INDUSTRY

Submitted in partial fulfilment of the requirement for the award of the

degree of

BACHELOR OF BUSINESS ADMINISTRATION

2008-11

Submitted To: Submitted By:

Mrs. Astha Sharma and Sudhanshu Leekha

Dr. Richa Gupta BBA (Gen.) 6th Sem.

Faculty Guide 0501341708

IDEAL INSTITUTE OF MANAGEMENT AND TECHNOLOGY

(Affiliated to Guru Gobind Singh Indraprastha University

16x Karkardooma Institutional Area, Delhi)

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CERTIFICATE

This is to certify that Sudhanshu leekha pursuing Bachelor of Business

Administration from Ideal Institute of Management and Technology has

completed this project under my supervision and guidance. He has taken

care of all necessary aspects and shown interest and sincerity during the

completion of the project report on Effect Of Branding On Consumer

Buying Behavior to my full satisfaction.

I certify that this project is up to my expectations as per the guidelines

laid down by Guru Gobind Singh Indraprastha University.

Mrs. Astha Sharma and

Dr. Richa Gupta

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ACKNOWLEDGEMENT

Management is a profession wherein no work can be accomplished

without the help and assistance of a large number of people, be it your

superiors or subordinates. A good manager is the one who knows how to

get the work accomplished with the help of his colleagues. As future

managers, we are taught to practice such behavior at every step. This

project is also a part of it.

I would like to thank Ideal Institute of Management and Technology for

providing me with this great opportunity to work on this report andchoosing my own topic of interest.

Further I would also like to thank everyone in Ideal Institute of

Management and Technology with whom I have come in contact during

the preparation of this dissertation.

I wish to express my sincere gratitude to Mrs. Astha Sharma and Dr.

Richa Gupta for their extended support during the study and preparation

of the report. All have been profoundly instrumental in making the

project undertaken the source of knowledge providing all the support

and necessary guidance.

SUDHANSHU LEEKHA

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EXECUTIVE SUMMARY

Brand is a Guarantee, an assurance for a defined standard of quality for

the first time and for every time but not the vice versa. Brand is name or

logo that plays the role in the mind of the customer. Brands do notcompete in the product area but compete for the 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. If brand owners use their

product correctly, the payoffs can be substantial. However, if brands are

mismanaged, the results can be damaging.

This report is aimed to investigate the effect of brand on consumer

buying behavior. How much consumers are prepared to pay for branded

products, how important they consider price, brand or other factors

during their purchasing decisions. The Report aimed at comprehensiveliterature review on branding, brand loyalty, brand awareness, brand

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

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TABLE OF CONTENTS

1. Chapter 1 Introduction 01-06

1.1 Introduction 02

1.2 Project Aims & Objectives 03

1.3 Limitations of the Project 06

2. Chapter 2 Literature Review 07-20

2.1 Understanding Branding 08

2.1.1 History of Branding 11

2.1.2 Branding in todays Markets 13

2.1.3 Importance of Branding 15

2.1.4 Development of Brand Equity 18

2.1.5 The Competitive Advantage of Brand Loyalty 19

2.2 Understanding Consumer Buying Behavior 21

2.2.1 Factors Affecting Consumer Buying Behavior 22

2.2.2 Consumer Buying Decision Process 25

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2.3 Brandings Influence on Consumer Purchasing Behavior 28

2.3.1 Impact on the Consumer Learning Process 31

2.3.2 Impact on Consumers Perception of Brands 32

2.3.3 Impact on Consumers Attitudes towards Brands 36

2.4 Positioning 37

2.4.1 Usefulness of Positioning 37

2.4.2 Brand Positioning 38

2.4.3 Elements of Positioning 39

3. Chapter3 - Research Methodology 41-43

3.1 Introduction 42

3.2 Research Approach 42

3.2.1 Secondary Data 42

3.2.2 Primary Data 43

3.3 Data Collection Tools 43

4. Chapter 4 - Findings & Analysis 44-73

4.1 Secondary Research Findings 45

4.1.1 Current Consumer Trends 48

4.1.2 Top Brands in India 51

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4.2 Primary Research Findings 57

5. Chapter 5 - Conclusions & Recommendations 74-79

5.1 Conclusions 75

5.2 Recommendations 77

Bibliography 80

Annexure 81-87

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CHAPTER-1

INTRODUCTION

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CHAPTER 1: INTRODUCTION

1.1 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 relationships with

them and become their companions for life. Such brands, make their

parents (organization or corporate) proud of them. The best brands are

the ones who help in forming and sustaining strong long term parent-

brand-people relationships. These brands form the potential for presentgrowth 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), wearing clothes ( Allen Solly, Levis or Raymonds), breakfast

bread (Britannia or Modern) and butter (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 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

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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 etc. examples 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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1.2 Project Aims and Objectives

Importance of understanding branding and its impact on modern day

markets is vital to the health and growth of most industries. The aim of

this report is to put into perspective the functional values of branding aswell as assess its role in the consumer purchase decision-making

process.

Understanding the concepts of branding and consumer behavior.

To study the effect of brands on consumer buying behavior in

relation to Readymade garments.

To analyze the branding strategies adopted by some of the

companies in the readymade garments to woo the consumers into buying

their products.

To do a comparative study of the branding strategies adopted by

the companies in the readymade garments.

EFFECT OF BRANDING ON CONSUMER BUYING

BEHAVIOUR-A STUDY IN RELATION TO FASHION

INDUSTRY

In order to fully answer this research question, the following objectiveshave been set:

Set a valid and sustainable research question in order to achieve a non-

bias and accurate understanding on the topic in question;

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Present the key concepts behind branding, its values and its usage in

modern day marketing campaigns by reviewing current literature

pertaining to the subject matter;

Determine whether a correlation between consumer identities andperceived brand identities is present;

Determine the impact of branding on the consumer purchase decision-

making process

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1.3 Limitations of the Project

This project is limited due to time constraint as it involves a lot of

complex variables which require a detailed study over a period of

time.

The project 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.

The consumers were very reluctant to answer the question and theresponse may be biased.

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CHAPTER- 2

LITERATURE REVIEW

CHAPTER 2: LITERATURE REVIEW

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2.1 Understanding Branding

BRAND

The word Brand owes its origin to the Norwegian word brand which

means to burn. Farmers used to put some 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 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.

BRANDING

Branding is a process, a tool, a strategy and an orientation.

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Attributes A brand will communicate specific attributes, such as prestige

Benefits A brand strengthens a products attributes by communicating a

set of benefits that makes it more attractiveValues A brand represents a companys core values and belief system

Culture A brand is representative or target a target audiences socio

cultural characteristics

Personality A Brand can project behavioral personality patterns of

targeted consumers

User The brand, in some cases, can emulate the end user

From the consumers 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-expression. Hence,

should a company market a brand name as nothing more than

just a name; it would be missing the entire purpose of product

branding. The challenge lies in developing a deep set of meanings for

the brand. Once a target market segment can visualize all six dimensionsof the brand, it will have established a strong rapport within the

consumers purchase decision-making process.

2.1.1 History of Branding

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Brands in the field of marketing, originated in the 19th century with the

advent of packaged goods. Industrialization moved the production of

many household items, such as soap, from local communities to

centralized factories. These factories, generating mass-produced goods,needed to sell their products in a wider market, to a customer base

familiar only with local goods. It quickly became apparent that a generic

package of soap had difficulty competing with familiar, local products.

The packaged goods manufacturers needed to convince the market that

the public could place just as much trust in the non-local product.

Many brands of that era, such as Uncle Ben's rice and Kellogg's

breakfast cereal furnish illustrations of the problem. The manufacturerswanted their products to appear and feel as familiar as the local farmers'

produce. From there, with the help of advertising, manufacturers quickly

learned to associate other kinds of brand values, such as youthfulness,

fun or luxury, with their products. This kick started the practice we now

know as "branding".

We tend to think of branding as a modern day phenomenon. Certainly,

during the late 1990s and the early 2000s, branding emerged as asignificant area of emphasis not only for companies and their products,

but also for municipalities, universities, other non-profit organizations

and even individuals. Branding became ubiquitous. Many of us also

know that Proctor & Gamble and other consumer product companies

began branding their products in earnest in the mid-to-late 1800s. But

more interesting to me is how far back in time branding goes. For

instance, companies that sold patented medicines and tobacco beganbranding their products as early as the early 1800s. Around the same

time, some fraternities and sororities branded their pledges (literally)

during initiation rites as a form of identification and bonding, a practice

that has long since been identified as hazing and therefore abandoned.

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But that is still recent history -- relatively.

Between the 1600s and 1800s, criminals were branded (again literally)

as a form of punishment and identification. For instance, in England,

they branded an S on a person's cheek, while in France; they branded afleur de lis on the shoulder. As repugnant as it may be to us today,

slaves were also branded roughly during the same time period to connote

ownership. In the 1200s, England required bread makers, goldsmiths

and silversmiths to put their marks on goods, primarily to insure honesty

in measurement. In the Medieval times, printers also used marks as did

paper makers (watermarks) and various other craft guilds.

But branding goes back even further. As far back as 1300 BC, potter's

marks were used on pottery and porcelain in China, Greece, Rome and

India. Branding of cattle and livestock go back as far as 2000 BC. And

archaeologists have found evidence of advertising among Babylonians

dating back to 3000 BC. So, how far back does branding go? At least

5000 years.

What is more interesting to me are underlying needs from which

branding originated: to insure honesty, provide quality assurance,

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identify source or ownership, hold producers responsible, differentiate,

as a form of identification and to create emotional bonding.

Interestingly, people value brands for many other same reasons today.

Clearly, history provides some insight and perspective on modern daybranding.

2.1.2 Branding in Todays Markets

A central function of branding is the facilitation of the consumer choice

process. Due to the complexity of having to select a product amongstthousands of similar offerings, consumers will instinctively attempt to

simplify their choice process by selecting brands that have satisfied them

in the past. Thus, one can conclude that pleasant past experiences 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 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 linked to previous experiences, but can alternatively be

formed by embedded perceptions. A consumer might strongly favour a

brand with no prior purchasing experience. This type of consumer

behavior is based on stimulus provided by direct exposure to advertising

campaigns, a companys PR efforts or even a high concentration of local

distribution in an area that is in close proximity to a consumer.

In terms of companies views on branding, it can induce the natural

differentiation of their offerings, which ultimately, will produce a state

of competitive advantage. Differentiation can only allow for competitive

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advantage if the cost of differentiating is significantly lower than the

revenue earned by the sales. Differential advantage allows companies to

showcase their offer in respects to other competitors in the same

marketplace.

2.1.3 Importance of Branding

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brand in the market, they can use the pre-earned goodwill and reputation

for the new launch. The advantage is that, people are bound to purchase

the new products out of curiosity.

Importance of Branding in Marketing

Marketing primarily involves the study of demand in a market and

creating a response in the form of supply. In the field ofmarketing, the

brand name plays an important role as it helps the people to promote thebrand 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 exactly 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.

Importance of Branding in Advertising

Advertising is often considered to be a part of marketing however;

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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 thatadvertisers 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.

In short, the importance of branding can be summed up in simple words

'successful 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.

2.1.4 Development of Brand Equity

The amount of clout controlled by different brands will vary. Some are

deeply embedded in global culture and are thus, highly recognizable,

whilst other are virtually unknown to consumers. When attempting to

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place a value on a brand, one refers to brand equity. Chay (1991)

defines brand equity as a set of associations and behaviors on the part

of a brands customers, channelmembers, and Parent Corporation

that permits the brand to earn greater volume or greatermargins than

it could without the brand name and that gives the brand a strong,sustainable, anddifferential advantage over competitors. This

explanation creates a clear link between a products values, be it

financial or intangible, and a brand 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 assumption that the consumer has

had extensive experience with the product in question.

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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 companys market share

and the allowance of higher pricing policies.

2.1.5 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 heldcommitment 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. It now becomes clear

that a modern day marketers principal objective is to build sustainableforms 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. It occurs because the consumer perceives that the brand

offers the right product features, 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 breakconsumer habits, help them acquire new habits, and reinforce those

habits by reminding consumers of the value of their purchase and

encourage them to continue purchasing those products in the future.

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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', but distinguishes it in a memorable and positive 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 companys philosophies. A brand needs more than

identity; it needs a personality. Just like a person without attention-

grabbing characteristics, a brand with no personality can easily bepassed right over. A strong symbol or company logo can also help to

generate brand loyalty by making it quickly identifiable.

2.2 Understanding Consumer Buying Behavior

Definition

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Consumer 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

Consumer behavior involves study of how people buy, what they buy,

when they buy and why they buy. It blends the elements from

psychology, sociology, socio psychology, anthropology and economics.

It 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 theinterplay of a number of complex variables not visible to anyone.

2.2.1 Factors Affecting Consumer Buying Behavior

Consumer buying behavior is influenced by the major three factors:

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These are internal to an individual and generate forces within that

influence her/his purchase behavior. The major forces include motives,

perception, learning, attitude and personality.

Example:

Attitude is an enduring organization of motivational, emotional,

perceptual and 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 Factors

These include those aspects that are unique to a person and influence

purchase behavior. These factors include demographic factors, lifestyle,

and situational 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 with life and living and 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.

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2.2.2 Consumer Buying Decision Process

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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

Purchase decision making process begins when a buyer becomes 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

Its when a person recognizes that she cannot make a call from her

mobile phone thats 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. Information Search

After the consumer has recognized the need, he / she will try to find themeans 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 by 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.

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Sources of information include:

Personal sources

Commercial Sources

Public sources

Personal experience

C. Alternatives Evaluation

Consumers evaluates criteria refer to various dimension; features,

characteristics and benefits that a consumer desires to solve a certain

problem. Product features and its benefit is what influence consumer toprefer that particular product. The 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 Action

This stage involves selection of brand and the retail outlet to purchase

such a product.

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 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

final step of transaction by either cash or credit.

E. Post-Purchase Actions

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Consumer favorable post-purchase evaluation leads to satisfaction.

Satisfaction with the purchase is basically a function of the initial

performance level expectation and perceived performance relative to

those expectations. Consumer tends to evaluate their wisdom on the

purchase of that particular product. This can result to consumerexperiencing post purchase dissatisfaction. If the consumers perceived

performance level is below expectation 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. This

might cause the consumer to initiate complaint behavior and spread

negative word-of-mouth concerning that particular product.

2.3 Brandings Influence on Consumer Purchasing Behavior

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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 following section of this literature review will seek to enlighten theimpact branding has on the consumer decision-making process.

First however, one must gain clear insight into the definition of

consumer buying behavior in order to understand the impact branding

has on it. In defining consumer buying behavior, one may refer to

Assael (1987) who 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 inquestion.

Consumers who are described as displaying complex buying behavior

will expand their beliefs regarding a particular product as a starting

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point. This stage will eventually lead them to develop positive attitudes

regarding the product. These 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 Assaels model; one

will notice this type of consumer engages in highly involved purchasingexperiences being fully aware of the range of brands available and their

levels of differentiation.

Assael (1987) classifies consumer who exhibit Dissonance-reducing

behavior 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 whenseeking 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 functionality or

characteristics, this type of consumer will purchase based on information

gathered passively, via the companys promotional efforts, by it through

the medium of television, radio or print advertising. This behavioral

type, as can be seen on Assaels (1987) model, with low-levelinvolvement products. Differentiating 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 Assaels (1987)

model. Their typical buying situation is summarized by low-level

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involvement in a 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 consumerdecision making process, the Howard-Sheth Decision-making model by

Howard and Sheth (1969) is used that explains not only the process of

consumer decision-making during purchasing activities, but one that

facilitates the understanding of pre and post purchasing activities as

well.

The models core assumption lies in that the key to determining behavior

exhibited by consumers is to fully understand the consumer thought

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It has been found that the learning process discussed above acts as a

catalyst in creating emotional and evaluating responses. These responses

are embedded in the consumers memory span, which will be recalled

when faced with a purchase decision-making process. Thus,

understanding the learning process is the key to marketers who seek toefficiently 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.

2.3.2 Impact on Consumers Perception of Brands

One may refer to Foxall (1980), where Engel defines perception as the

process whereby stimuli are received and interpreted by the individual

and translated into a response. At this point, it is important to note that

this process is unique to each individual, as perception is highly

dependent on a consumers individual beliefs structure.

Perception is crucial in the decision-making process. In a market where

branding is used, products are no longer only purchased for theirfunctional characteristics, but primarily for the social or in some cases,

psychological identity they express.

Building on these concepts, One can elaborate on these concepts by

outlining two determinants that influence a consumers perception of

brands. These two factors are stimulus discrimination and stimulus

generalization.

Whether a consumer has the ability to discriminate between thevarious methods used to stimulate a consumer? When a customer is

introduced to a brand, whether this is done via advertising, packaging,

word of mouth marketing or any other form of stimuli that affected them

during their decision-making process, their levels of awareness of the

brand will gradually increase via their ability to learn. Once their level of

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brand awareness has increased, their purchase decision-making process

will be influenced by their perception of the brand in question.

The perception of brands is crucial to both the marketer and the

customer. If one considers that frequency of purchases varies fromconsumer 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. Thus, consumers will have the relevant

tools needed to distinguish between the brands on offer and therefore be

persuaded in their selection. In the event that a consumer is a new user

with no product experience, he or she will not be able to make relevant

decisions based on the actual product. Thus, the brand image again,becomes vital in directing the consumer to a specific product.

In 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.

Perceived Quality In time, consumer will have faith in abrands integrity via their perceived

quality of the brand in question

Building Excellent Service When a company implements excellent

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

Standing Out in the

Consumers

By striving to differentiate ones brand

from another, companies hope to become

embedded in the users culture and mind.

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This is the most effective way to insure

consumers positively perceive the brand

and product. This eventually leads to

extremes forms of competitive advantage

Investing in Differential

Markets

When 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 will

not be possible.

Brands have a large impact on the perceived risks consumers associatewith the consumer purchase decision-making process. There to be six

risks that are perceived by consumers during all aspects of the decision-

making process and further outlines how brands can appease the

consumers mind in regards to these perceived risks.

The first perceived risk a consumer might encounter is one of a

functional nature. The consumer might worry whether the product will

meet his or her expectations. In the creation of a trustworthy brand,marketers seek to raise the level of perceived quality in order to

specifically address this risk.

Consumer 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. Price sensitive consumers will question whether theproduct 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. If properly done, consumer can

become price insensitive by forming a strong bond to a brand and

therefore isolating him or herself from competitors.

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Socially 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. Marketers 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.

.

Yet 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. Reflected in a loyal consumer base, is a

brands ability to deliver on the satisfaction guarantee. Thus, one canunderstand that branding is the key in addressing this issue in the

consumers mind.

2.3.3 Impact on Consumers Attitudes Towards Brands

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An attitude can be considered to be either positive or negative,

depending 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. Thedevelopment 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.

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

towards products, especially those involving low-levels of consumer

involvement. However it has been noted that there are factors that might

negate the effects of the formation of positive attitudes. One being thatthe 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 consumers

positive attitudes towards the brand and result in a non sale.

In considering attitudes towards brands, one must ponder whether these

attitudes all remain at a conscious level, or whether branding caninstigate attitudes at a sub-conscious level. Sigmund Freuds 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 Freuds theories, one can conclude that branding can

be used to target sub-conscious desires that rest at a primal level.

2.4 Positioning

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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 distinctiveand 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?

Against whom?

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4. The Consumer: - It should be reiterated that positioning is essentially

based on consumer perception rather than factual evaluation. Hence, it

becomes necessary to examine how the consumer views a product. Here,

it becomes necessary to examine how the consumer views a product.Here, the consumers self-perception comes into play along with his

cognitive & connotative factors.

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CHAPTER- 3

METHODOLOGY

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CHAPTER 3: METHODOLOGY

3.1 Introduction

In order to understand the methodology used to compile this Project, 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 Project, as well as comprehend the process underwent to reach

the pertinent conclusion outlined in chapter 5.

This chapter also serves the purpose of justifying and authenticating the

research procedures employed in order meet the set objectives andanswers the main research question of this Project.

3.2 Research Approach

3.2.1 Secondary Data

Articles in Newspapers, Magazines and Internet

Study Reports from Internet

Desk Research under the guidance of my guide

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CHAPTER- 4

FINDINGS & ANALYSIS

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CHAPTER 4: FINDINGS & ANALYSIS

4.1 Secondary Research Findings

Consumer Behavior is the study of the processes involved when

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

services, ideas, or experiences to satisfy needs and desires. Consumers

take many forms, ranging from an eight-year-old child begging her

mother for Pokemon shoes to an executive in a large corporation

deciding on a multimillion-dollar computer system. The items that are

consumed can include anything: Gucci handbags, a massage, democracy,rap music, or hoopster rebel Dennis Rodman. Needs and desires to be

satisfied range from hunger and thirst to love, status, or even spiritual

fulfillment. Consumer behavior is the study of the processes involved

when individuals or groups select, purchase, use, or dispose of products,

services, ideas, or experiences 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. In addition,

consumers may be thought of as role players who need different

products to help them play their various parts.

Fashion 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 skirts;

a fashion is a style that has been accepted by many people; high fashion

consists of new, expensive styles offered by upper-end designer. A trend

is a general direction that may lead to a fashion. Merchandise

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classifications include designer, bridge, better, moderate, and budget

prices.

Fashions tend to follow cycles. The two extremes of fashion

adoption known as collective selection. Perspectives on motivations for

adopting new styles include psychological, economic, and sociological

models of fashion.

Marketing activities exert an enormous impact on individuals.

Consumer behavior is relevant to our understanding of the dynamics of

popular culture.

The Internet 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. The benefits are accompanied by potential problems,including the loss of privacy.

The field of consumer behavior is interdisciplinary; it is composed

of researchers from many different fields who share an interest in how

people interact with the marketplace. These 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).

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

consumer as he will be the next big thing The Man.

Teenage Power

Teenage consumers influence the purchase patterns of many

different age groups.

They are the offspring of the baby boomers and represent over 14

per cent of the total population.

Typical teenagers room now includes a TV, a stereo, a DVD

player, a computer and perhaps even a microwave oven.

Each room is a highly personalized environment that can be

custom tailored and personalized as a centre for entertainment.

42 per cent of all Indian teenagers, 18 and over, have their own

credit card and increasing another 14 per cent to have access to the

credit cards.

Fashion brands need to pay more attention to this consumer segment as

they are the future of the marketplace. Increased income levels and

exposure to television makes them the consumer with the buying power,

especially with the phenomenal growth in the BPO sector where dress

codes are essential and thus increasing the opportunities for brands to

market themselves and sell to this segment.

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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 Philippe's range of superbly crafted garments makes an exclusive

fashion statement that is accepted as a status symbol, recognized by its

distinctive icon 'The Upper Crest'.

Van Heusen

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LEVIS FASHION BRAND

In the list of top market players in the fashion industry, the most shining

name is Levis fashion brand. Levi Strauss & Co. (LS&CO) was named

after its founder Levi Strauss in 1853. Since then the journey of its

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women. Wills Lifestyle has also introduced Wills Signature designer

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

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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.

4.2 Primary Research Findings

Which of the following fashion brands are you aware of?

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

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How often do you change your readymade garments?

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Factors you consider while purchasing a readymade garments

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about modest prices and

wearability.

I prefer to buy well-

known designer labels

rather than take a

chance on something

new.

6 4 40

I am confident that I

have good taste in

clothing.

10 18 22

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Who influence you to purchase the brand?

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

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Which of the following would affect you choice of readymade

garments?

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When you buy a readymade garment during a promotional

campaign, will you by the product after the campaign?

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

preference)?

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If magazine, is it because of

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If Newspaper / pamphlets, if it because of

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Chapter 5 CONCLUSIONS & RECOMMENDATIONS

5.1 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 beaggressive in both markets. Even as they plan to improve their retail

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 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 Plus discovered, further growth could come only

from a wider distribution 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 thanmanufacturing expertise and a heightened fashion-consciousness.

Established names, however, do not have it easy either. The entry of

international brands such as Tommy Hilfiger into the Indian market is

likely to be followed by more players.

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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.

Apparel retailers, with little retail expertise, had to build their own

network, 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 boost to the industry would come from allowing foreign direct

investment in retailing, which would increase space considerably and

also bring international practices to India. This may also encourage

newer entrants, once the distribution costs decline.

Private labels tend to do well during recessions. Retailers enjoy better

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

Players such as Madura Garments, which have a presence in the segment

through Allen Solly, believe that once women try out private labels andget 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 a low-margin, volume-driven business. This

would also need a far larger distribution network than what exists today.

Few retail formats in India operate on a truly large scale. Giants such asWal-Mart and Carrefour, which have the ability to drive volumes, are

what the industry would need.

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5.2 Recommendations

1. Rural market. Knowing the huge size of rural population of India it

is natural that the rural market is attractive to marketers. Company

should study purchasing power, life styles, buying habits, optimal usage

level. Brooke Bond for instance could capture the crux of the challenge

when they started marketing Re 1 tea packets.

2. Understanding role of children. Marketers should study the role of

children in buying decision as influencers and decision makers.

However, the challenge remain how does one communicate with

children? Advertising recalls being more in the case of children-one

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BIBLIOGRAPHY

Kevin Lane Keller (2004), Strategic Brand Management, 2nd

edition, Pearson Education, New Delhi

Consumer Behavior, 6th Edition, by Lean G.Sehiffman and Leslic

lazan Kanuk.

Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

Brand Equity (Economic Times)

www.google.com

www.wikipedia.com

www.levis.com

www.peterengland.com

www.raymonds.com

www.excalibure.com

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Monthly Household Income:

20000

1. Which of the following fashion brands are you aware of?

Levis Dockers Color Plus

Parx Blackberrys Zodiac

Provogue Park Avenue Louis philippe

Van Heusen Peter England Excalibur

Arrow Others(please specify)

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

Lee Black Levis Strauss

Wrangler Numero Uno Pepe

Monte Carlo Lites Lee Cooper Others (please specify)

3. How often do you change your readymade garments?

Frequently Occasionally

Never

4. How often do you purchase clothes?

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Once a week Once in a month

Once in 3 months Once in 6 months

5. Factors you consider while purchasing a readymade garments?

RANK THEM ACCORDING YOUR PRIORITY:

Cloth type Color Brand

Fashion/Trend Price Availability

6. 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 you agree or disagree with each statement.

Agree Neithe

r

AgreeNor

Disagr

ee

Disagr

ee

I buy clothes I like, regardless of

current 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.

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I prefer to buy well-known

designer labels rather than take a

chance on something new.

I am confident that I have goodtaste in clothing.

7. Who influence you to purchase the brand?

Family

Friends

Advertisement

Self Other

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

TV Magazine

Newspaper Internet

Other

9. Which of the following would affect you choice of readymade

garments?

No effective at all Affecting the most

Cloth Type

Price

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Promotional

campaigns

10. When you buy a readymade garment during a promotional

campaign, will you by the product after the campaign?

Yes

Likely

Dont Know

I will most likely written over to my previous brand

I will switch over to previous brand

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

preference)?

TV Magazines

Newspaper / pamphlets Radio Hoardings / bill boards

Any other (specify)

12. If TV, is it because

It is an audio - visual medium Entertainment value

Overall presentation

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13. If magazine, is it because of

It is a good source of latest trends Overall presentation

Longevity of message

Any other (specify)

14. If Newspaper / pamphlets, if it because of

Inexpensive source of Information Mass coverage

Available in many languages Any other (specify)

15. If Radio, Is it because

Audio medium Entertainment value

Medium for travellers and car riders Any other (specify)

16. If Hoardings, is it because

It is an attention gaining medium Conveys direct message

Colorful and attractive Any other (specify)

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