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itive Position in the Indian Br

Presented By :
Chandranath Banerjee
Debsadhan Chaudhary
Kunal Dadlani
Prantik Ghosh
Rajat Saxena
CONTENTS
Introduction
Apparel Industry
Analysis of Arvind’s Brand Portfolio
Arvind’s Competition
Growth Strategies
SWOT Analysis
PORTERS FIVE FORCES Analysis
Branding Strategies
Issues
Conclusion
INTRODUCTION
qEstablished in 1931 by the Lalbhai brothers
of Ahmedabad .
qBirth of three new units in 1993 - textile ,
telecom and garments division .
qArvindBrands Ltd was a Rs . 3 . 50 million
subsidiary Arvind Mills
qMajor stakeholder - ICICI , 2004 .
qArvindMills reacquired ICICI ’ s stake by
raising US$ 37 . 19 million
qArvind Brands became 100 % subsidiary of
Arvind Mills in 2005 .
INTRODUCTION
qAll the brands under the Arvind name were
growing at a healthy rate in 2004 .
qPlans to sustain growth by increasing
retail presence .
qSaif Ali Khan appointed brand ambassador
for the Newport brand in 2005 .
qStrategy was increasing distribution and
penetration .
qCompetitive edge - zero excise duty and
economies of scale
THE BRANDED APPAREL INDUSTRY
ANALYSIS
OF BRAND
PORTFOLIO
Parameters to judge
portfolio
Maximizing brand equity : one
brand should not harm others.

Branding strategy according


to breadth and depth.

Segmentation, targeting and


positioning of brands.
Breadth of branding
strategy

vThe number and nature of different products


linked to the brands sold by a firm.
v
v
vDepends on:
•Aggregate market factors
•Category factors
•Environmental factors
Depth of a branding
strategy
vNumber and nature of different brands marketed
in the product class sold by a firm.
v
vHelps in
•Increase shelf presence and
retailers dependence
•Attract consumers seeking
variety
•Increase internal competition

Golden rule : Maximize coverage and


minimize
Brand overlap
Arvind Brand
Basket
Flying Newport Ruf n Tuf Excalibur
Launched Machine
1980 1993 1997 1995
Age group 15-30 18-28 15-30 18 & Above
Price range 500-1000 300-500 299-699 500-1000
Difficulties Hike in exiseHike in exiseDistribution ----
faced to 8% to 8% hurdle
Retailer own outlet own outlet Big Bazaar
Brand Abhishek Saif Ali Akshay ----
ambassador Bachchan Khan kumar
Tag Line Who Needs The Measure ---- ----
Phoren? of Success
International
Brands
Arrow Lee Wrangler Tommy
Licensed Cluett, VF VF Hilfiger
JV with
Age group peabody
27-35 & corporation
4-14 & 17- corporation
17-25 &25- Murjani
18 & Above
specifics co.,
FourUSA
sub 25
Adjudged •40 Fashion group
Introduced
brand the images conscious men’s
•Classic fashion •Love sportswear,
•Premium award “most wearing men’s
•Urban admired denim on Jeanswear,
•Sports Jeanswear” weekend junior
brand •Retail Jeanswear
ambience
was given
importance
Why so many brands
?
Competitio
n
Major Competitors Of Arvind
Brands
Madhura Garments
vIt’s was the garment division of
Indian Rayon and Industries Ltd. A
flagship company of the A V Birla
Group Company.
v
vOwns perpetual license for premier
brands like – Louis Philippe, Van
Heusen, Allen Solly, Peter England,
Byford, Elements and SF (San Frisco).
v
vPreferred global supplier of
international brands like- Marks and
Spencer’s, Tommy Hilfiger, Polo, Ralph
Lauren, and several others.
v
vIt distributes its brands through
its own retail chains namely Planet
Fashion and Trouser Town.
Brand Portfolio of Madura
Garments
RAYMOND APPAREL LTD

A 100% subsidiary of Raymond Limited,


Raymond Apparel Ltd. (RAL) ranks amongst
India's largest and most respected apparel
companies
They provide the best of fabric and style
through some of the country’s most
prestigious brands – Raymond Finely Crafted
Garments, Manzoni, Park Avenue, ColorPlus,
Parx, Notting Hill and Zapp!

All of Raymond’s brands are available at


exclusive brand stores, ‘The Raymond Shop’
retail outlets and multi-brand outlets
across India and the Middle East
RAYMOND’s BRAND PORTFOLIO
INDUS LEAGUE

Indus-League Clothing Ltd., was founded on 14th April


1999 by a team of eight top-flight management
professionals from the clothing industry. These
professionals have established a reputation for
creating and building some of the most successful
fashion brands in South Asia and the Middle East.

Within an year Indus League had transformed itself


from a new entrant into a company that has launched
two fashion brands namely Indigo Nation and Scullers

Indus-League has a portfolio of Three proprietary


brands - Indigo Nation , Scullers and Jealous
covering different segments of the fashion market.
LEVI STRAUSS &
CO.
v Founded in 1853 by Bavarian immigrant Levi Strauss,
Levi Strauss & Co. is one of the world's largest
brand-name apparel marketers with sales in more than
110 countries
v
v In 2009 it completed 15 years in India
v
v It expanded its portfolio from being a jeans only
brand to emerge as the complete casual wear brand
v
v 4 sub-brands Sykes, 501, Red Tab and Red Loop
Levi Strauss’s Brand
Portfolio
PROVOGUE
The Company was incorporated on November 11, 1997 as Acme
Clothing Private Limited.
Provogue stands for fashion and not pure apparel. Its designs
are contemporary and cutting edge

Provogue’s brand statement “ Redefining fashion” and its


innovative merchandise have created a niche in the minds of
its consumers.
The brand is retailed through selective stores in the
country and leading National Chain Stores like Shopper's Stop,
Lifestyle, Globus, Westside etc.
More importantly, Provogue is also retailed through a chain
of exclusive brand outlets called "Provogue Studio"

PROVOGUE’S PRODUCT RANGE INCLUDE:


INNERWEAR , T-SHIRT , BOTTOMS , JACKETS & BLAZERS , DENIM ,
FORMAL SHIRTS , LINEN SHIRTS , CASUAL SHIRTS, FOOTWEAR ,
SUNGLASSES , FRAGRANCE , CAPS, BAGS , BELTS
ARVIND’S GROWTH STRATEGY
ARVIND’S GROWTH STRATEGY(Cont..)
SWOT ANALYSIS
STRENGTHS
Ø Strong portfolio of domestic and international brands
ØEconomies of scale through complete integration
ØLatest manufacturing tools
ØWide geographical presence

WEAKNESS

ØLack of fresh ideas


ØPresence in only big cities
ØNot doing enough to build brand equity
OPPORTUNITIES ØChanging retail scenario
ØRapid growth in age group of 15-44
years
ØAbility and willingness in India

THREATS
ØCompetitors like Raymond, Bombay
Dyeing, Madura Garments
ØCheap imports from China, Thailand,
Bangladesh
ØExcise duty
PORTER’S FIVE FORCES MODEL
COMPETITIVE
RIVALRY
Huge number of competitors

Competitors adopting
aggressive growth strategies
as well as eyeing top cities

Stiff competition from small


town stores and specialty
stores
THREAT OF NEW ENTRANTS
THREAT OF
SUBSTITUTES
BARGAINING POWER OF SUPPLIERS
BARGAINING POWER OF CUSTOMERS
BRAND HIERARCHY
Corporate or Company Brand: Arvind Mills
Family Brand: Arvind Brands Ltd.
Individual Brands
- Licensed Brands: Lee, Wrangler, Arrow,
Tommy Hilfiger
- In - House Brands: Newport, Ruf n Tuf
Modifier: Leesures by Lee

qThe apparel industry did not follow the umbrella branding


strategy
qArvind divided its brands into 4 clusters and each cluster had
its distinct marketing strategies
POP &
POD

In this case, Arvind’sPOD’s are not well defined. Their


offering, target audience and positioning is very similar
to its competitors.
CHANNEL
STRATEGIES

Arvind was shifting its focus from multi brand and


small town stores to company-owned stores
PUSH & PULL
STRATEGIES

Arvind mainly concentrated on Pull strategy ex. endorsements


by Bollywood stars like Akshay & Saif. Push Strategies
weren’t required as they were concentrating on company-owned
stores
OTHER CONCEPTS
Brand Extension: when different products are manufactured
under same brand name. Ex. Arrow started off as a shirts-only
brand then diversified into casuals, jeans and accessories like
belts, wallets etc.

Forward Integration : Arvind Mills, which manufactured fabrics,


integrated vertically forward by launching its in-house brands
and retail stores.

Brand Endorsement : associating a popular figure as the brand


ambassador to give the brand a personality and strengthen its
positioning ex. Action star Akshay Kumar was roped in to endorse
Ruf n Tuf to give it a tough & rugged look.
ISSUE
S
qLack of new ideas
qInability to keep up with the changing market
demands
qUnwilling to place its products in multi-brand
stores thereby losing customers in the tier-II,
tier-III cities
qTough competition from local and international
players
qJust one offering for the bottom of the pyramid
(Ruf n Tuf)