wills lifestyle_brand extension[pgp30380]
TRANSCRIPT
ITC – The Company
One of India’s most Admired and Valuable company-Market Capitalization: over US $ 40 Bilion
A USD 8 billion enterprise by Revenue- ~58% of Net Revenue from non-Cigarette segments
Leading Fast Moving Consumer Goods marketer in India- Established several world class brands in the last 10 years
The only Indian company to feature consistently amongst theTop 10 global FMCG companies
Only Indian FMCG company to feature in Forbes 2000 List
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Source: Audited Financial Results, ended 31st March 2015,http://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterly-results.aspx
41%
21%
3%
19%
12%4%
Segment Revenue
FMCG - Cigarettes
FMCG - Others
Hotels
Agribusiness
Paperboards, Paper & Packaging
Others
ITC Category Wise Segmentation
• Generates 80-85% of ITC’s profit
Cigarette FMCG Business
• Lowering its losses every year and it is expected to breakeven in 2014-15. The segment's losses declined from Rs195.49 crore in 2011-12 to Rs 81.26 crore in 2012-13
Non-Cigarette FMCG Business
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Wills – ITC’s Cigarettes BusinessITC is the market leader in cigarettes in India
The Wills brand is estimated to be worth Rs 1,500 crore and is second only to Gold Flake, also owned by ITC, which is valued at nearly Rs 2,500 crore
Segment-wise Gross Revenue of FMCG-Cigarettes is 41%
Cigarettes still generate 80-85% of ITC’s profit
ITC’s cigarette sales by volume were estimated to have shrunk 9% year-on-year
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Wills Lifestyle – ITC’s Lifestyle Retailing
ITC's share is not more than 4% in the apparel retail
Top-of-the-line garments Wills Lifestyle plus John Players -- contributes a little over 2 per cent of ITC's FMCG business
Segment-wise Gross Revenue of FMCG-non Cigarettes is 21% . Wills Lifestyle contributes 60% to ITC's lifestyle retail revenue
Wills Lifestyle contributes almost 80% to ITC's lifestyle profits
Increasing average billing value by 15-20% year-on-year with a more premium mix
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Brand DiversificationHigh incidence of taxation and a discriminatory regulatory regime on cigarettes in India
The share of legal cigarettes in overall tobacco consumption has progressively declined from 21% in 1981-82 to below 12% in 2014-15 even as overall tobacco consumption has increased in India
The declining sales of cigarettes, the proposed ban on advertising (Prohibition of Advertisement and Regulation Bill 2001), the increasing anti-tobacco campaigns and the experience in developed countries seemed to suggest that tobacco would no longer be a profitable business in the future
ITC decided to diversify into non tobacco businesses
ITC's diversification, especially into areas such as branded garments, aimed at improving its brand image, which, in turn, may help it grow its core business
The lifestyle retailing business grew revenue by 20% in 2013-14. The premium-end of the market which was earlier only 5 per cent has grown to about 10-15 per cent of the whole market share
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Indian Apparel Retail - Category Growth
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India apparel retail industry value:
$ billion, 2010–14
Source: Marketline
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India apparel retail industry value forecast:
$ billion, 2014–19 SOU
Indian Apparel Retail – Growth Forecast
Source: Marketline
WILLS LIFESTYLE
In 2000, ITC entered the lifestyle retailing space with the launch of Wills Lifestyle.
Wills Lifestyle has established a nationwide presence with upmarket product range available in exclusive 104 Wills Lifestyle stores across 44 cities and more than 500 ‘shop-in-shops’ in leading departmental stores and multi-brand outlets
Brand Value: Elegance, Sophistication and Exclusivity
Imagery: International premium quality and vitality
Tagline: Enjoy the Change
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WILLS LIFESTYLE Mission:
To be a one-stop, global solution provider for lifestyle and become synonymous with “Quality Lifestyle across the Globe”
Vision:
To create a fashion wardrobe that complements every facet of your personality at work, party and a special occasion called “LIFE”
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Timeline
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Entry into LifestyleRetailing space –2000
Wills Sport - 2000
Brand extensions
Wills Classic - 2002
Wills Clublife - 2003
Wills Signature 2006
Wills personal care segment - 2005
Title partner of
the country's most premier fashion event – 2006
Preferred Brand for rich & famous -2009
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2000
Racy stripes, Energetic prints
and Trendy dobbies
2002
New age work wear, trendy,
innovative, chic and stylish;
Rreflects the work
ethos of gen next
2003
Sensuous satin
and sequins embellished on jacquards and alluring prints
2006
a tribute to the evolved
consumer’s fashion sensibilities;
Created by the leading stylists
Relaxed Wear Formal Wear Evening Wear Designer Wear
Product Price Place Promotion
Wills Lifestyle is considered as a brand that is at the forefront of fashion
It positioned itself in the premium category
In 2007 it was named amongst the Top Luxury Brands of India by Time magazine
It is able to charge a premium from its customers
The Pricing of WILLS LIFESTLE Products is High
e.g. Men’s Shirts : Rs. 1500 – Rs. 5000
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Product Price Place Promotion
Exclusive 104 Wills Lifestyle stores across 44 cities
More than 500 ‘shop-in-shops’ in leading departmental stores and multi-brand outlets
The online stores (The chunk of online customers is very small, approximately only 5 per cent of the whole)
Coming up of more exclusive stores in the emerging premium mall & high street catchments
Plans to scale up its retail presence by expanding the footprint in smaller markets through the franchising model
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Product Price Place Promotion
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Product Price Place Promotion
Association with country’s most exclusive & prestigious fashion event
WILLS LIFESTYLE
INDIA FASHION WEEK
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Product Price Place Promotion
In 2008, developed a campaign voicing the thought
'The World Wants to be You'
The intent has been to take
consumer interest in the
brand to a new high
https://www.youtube.com/watch?v=qXXtpdKugos
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Product Price Place Promotion
Tie-ups with leading stylists of the country:
Anamika Khanna, Ashish Soni, Manish Malhotra, Manish Arora and Shantanu-Nikhil
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Market Segmentation
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Geographic Segmentation
Demographic Segmentation
Behavioral Segmentation
Psychographic Segmentation
Market Segmentation
Target Group
• Fashion-conscious people
• Class I cities
• Professionals (studying/working)
• Both Men and Women
•Age: 20 - 34 years
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Competitors
It is a mélange of comfort,
perfection and elegance.
A global brand, and one of the best
known in the world, United Colors of Benetton has an
international style that combines color, quality and fashion.
The brand epitomizes
classic American style and effortless
cool.
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POPs & PODsPOPs
• High Quality/ Comfortable to wear
• Fashion Space
• Premium Pricing
PODs
• Association with country’s most exclusive & prestigious fashion event
• Tie-ups with leading stylists
• Unique fabrics
• The chain of exclusive stores
• No Mass Media Advertising
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Brand Positioning
“ITC's Wills Lifestyle presents a complete fashion wardrobe that complements every facet of your personality at work, when you are relaxed, while you party and for those special occasions.”
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Brand Appearance
RED – “ red carpet treatment “ & “paint the town red”
(VIP, celebrities or high profile person & celebration, partying, fun &
excitement)
WHITE – “Peace, Perfection & Sophistication”
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Brand PersonalitySynonymous with elegance and style that is effortless and chic, Wills Lifestyle presents a premium fashion wardrobe for men and women.
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Thus, Wills Lifestyle has adopted Sophisticationas its Brand Personality
Brand Resonance Model
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• International Premium Quality
• Vitality• Superior consumer
value• Global Standards • Fashion
• High-end Lifestyle• Premium clothing
• Inspiration• Self-expression
• Quality• Superiority
• EmulationWills Lifestyle users areo Stand outs from the crowdo Objects of everyone's envy
ConclusionAll of this has led to:• Creating a distinctive identity in the premium western
wear market
• "The Most Admired Women's wear Brand of the Year“
• “The Most Admired Exclusive Retail Chain of the Year“
• "Most Admired Fashion Brand of the Year - Fashion Forward“
• “The Most Admired Exclusive Brand Retail Chain of the Year”
– Wills Lifestyle
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References
1. ITC Corporate Presentation, Available at:http://www.itcportal.com/about-itc/shareholder-
value/ITC-Corporate-Presentation.pdf(Accessed: June 29, 2015)
2. ITC: Building World-Class Indian Brands, Available
at:http://www.itcportal.com/businesses/pdf/brand-booklet.pdf (Accessed: June 29, 2015)
3. (March, 2015) Retail Industry in India, Available at: http://www.ibef.org/industry/retail-
india.aspx (Accessed: June 30, 2015)
4. Database, Available at: http://advantage.marketline.com/ (Accessed: July 9, 2015)
5. Database, Available at: http://www.portal.euromonitor.com/portal/ (Accessed: August 22,
2015)
6. Wills Lifestyle, Available at:
http://www.superbrandsindia.com/images/brand_pdf/consumer_3rd_edition/Wills%20Lifestyle.
pdf (Accessed: June 30, 2015)
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References
7. T R Vivek (2004) 'Tobacco ban forces ITC to stub Wills', Business Standard, 21st July
8. Manish Basu (2015) 'ITC to raise prices of all its key cigarette brands', Live Mint, 13th March
9. NAMRATA ANAND, VANDANA KHETARPAL, (2014) 'GROWTH OF APPAREL INDUSTRY IN
INDIA: PRESENT AND FUTURE ASPECTS ', , II(I)
10. Sreeradha D Basu (2010) ''We try to make fashion more accessible'', The EconomicTimes,
21stA April
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Acknowledgement
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The Brand Analysis is done under the able guidance and support of
Dr. Sameer Mathur, Ph.D.
Carnegie Mellon UniversityMarketing Professor (IIM Lucknow)http://www.BuddingMarkets.com
By: Mehak Jindal | PGP30380 | IIM Lucknow
Brand Management Course