Promotional Strategies in the Branded Denim Industry

Promotional Strategies in the shoped Denim IndustryThe global fashion app arl constancy is angiotensin-converting enzyme of the just about essential sectors of the economy in terms of investment, revenue, dish out and employment generation all over the world. App atomic pattern 18l industry has short product life cycles, trem fetch upous product variety, volatile and unpredictable demand, long and inflexible planning processes. The industry has been in a transition over the last 20 years. Some of the major contributors areSignifi give noticet consolidation in retail,Increasing use of electronic commerce in retail, andWholesale tradeGiven below is a diagram of the types of markets for the fashion industry globally/ India as dope be seen comes under Emerging invent market.viewer.pngFigure world- all-inclusive Fashion Market.The Indian Fashion IndustryFashion Industry growth in India is mainly driven by the growing exposure of domestic designers at transnational forums, but growth is similarly supported by other factors such as the gear up of foc utilise business education courses for emerging designers and the establishment of an industry association.The Indian fashion industry has gained international accl post and recognition at several global forums. This has also helped attract a large tour of international clients to the countryRising affluence has increased shop informed(predicate)ness among Indian consumers. According to theNielsen Global Luxury scrapes Study, India is among the most instigator assured countries in the world, with 35% of Indian survey respondents reporting to debase designer scoresIndia is considered an attractive market for luxury patsys about 50 support and luxury brands, including Jimmy Choo, Gucci, Christian Dior, and Chanel, sacrifice opened m unmatchabletary funds in India in recent years. Consumer cut downing on fashion products has grown at 7.1% annually from 2002 by 2007Denim Industry in IndiaDenim targets in India Jeans the working class groom has several(prenominal)thing about it which has fascinated the poor and the rich alike, and has survived fashion trends and technology changes for over a century.The jeans carry market in India is currently pegged at approximately Rs 6,000 crore the bulk of it in the unbrand market according to recent reports. However, the branded segment is believed to be growing at a faster pace, with brands giving tough competition to one a nonher. According to industry sources, the fundamental size of the jeans market in India is about 40-45 million pairs of dungarees out of which 44 million pairs are in the value segment(less than Rs 1,000). The Indian retail market size of jeans (mens and womens) in 2007 was Rs 3,080 crore with a healthy growth of 18 per cent over last year as per question conducted by Technopak. According to an Indian expert, denim production in India in 2006 was estimated to be at cd million metres, of which 250 millio n metres was for domestic consumption and the succor for exports.The Indian denim market is still in the nascent st progresss but its definitely a growing market which is growing in the the right way direction.Brand-conscious marketWith changing modus vivendis, the coordinate players are coming up with contemporary designs to target the youthful, stylish, trendy and mod consumers. Todays consumer is educated and very easy informed about different brands and knows what to buy and what not to buy. Indian consumers are no longer price conscious rather they are willing to spend money on high-end denim brands. Denims are not yet restricted to jeans, shirts, jackets and skirts, but are also a popular choice for accessories like bags, belts and caps. In denims, low rise, slim live on and twisted fit are in vogue. Ripped, brushed, torn, bleached, laser finishes acid and ice-washed are enough to tempt the brand conscious customers. The organised denim players are not only cater to th e premium class, but are also catering to the upper-middle and mid-segments as well. Todays customer is definitely brand conscious and asking for brands. Consumers are aspect at innovations rather than just a pair of jeans and T-shirt. The key to catching up with these changes is to innovate, as the Indian denim customer is much variety driven, says Shah. The brand has been quick to gauge that the young Indian consumers were get bored with just a five pocket pair of jeans and hence Pepe Jeans today is a one-stop polish for the young premium segment customer with its exhaustive range of fashion wear, club wear, and evening wear along with the core jeans.India is an emerging nation and has a huge potential to harness the untapped market. The denim industry has registered impressive growth in the last five years. This growth has also changed the consumer preferences- he has suit more than discerning and fashion conscious.Major players in the denim marketA number of players, both (prenominal) Indian and international, have entered the Indian market. The brands of both categories that were studied are listed belowIndian PlayersThe Indian players hold the followingSpykar has established itself as the Indian youth icon and the brand of the Generation Next in the Indian apparel industry, with a vast and staggering array of designer wear- from the first manufactures of Cargo in India unto the true(p) five pocket Jeans to swanky denims, fatigues, jackets, tees, shirts, etc. to trendy bags, belts, caps, wallets, socks and other accessories like shoes, deodorants, junk jewellery, eyewear. Having provided clothes for the last 15 years to the brand conscious youth, Spykar Lifestyle intends to now offer complete styling solutions to patrons through the Spykar Style Lab, with a reach to 3 million customers, influencing the youth culture across India.The brand grapple was born in the year 2000 and is today an innovative international design comp each, manufacturing jeans and casual clothing as well as accessories. It is present in over 22 states with 400 points of sale. From the beginning, smokestack jeans team plough their back on the style-dictator and consumer fore-casters of the fashion establishment and lead their own tastes lead them. It is for this reason that learn became the leader in developing the styles, manufacturing methods, fabric and quality control and guaranteeing an outstanding quality productLevi Strauss (India) Pvt. Ltd (LSIL) is a Bengaluru based, altogether owned subsidiary of Levi Strauss Co. (LSCO.). The company markets the Levis, Dockers San Francisco Levi Strauss Signature brands in India. The company was established in 1994 and brought authentic American jeanswear to India by launching the iconic Levis brand. It has since built a strong retail and scattering network spanning more than 250 cities and 750 outlets backed by an equally strong sourcing base. The company, with strength of about 200, is headquarter ed in Bengaluru. outside(a) playersThe International players studied are the followingPepe Jeans capital of the United KingdomPepe Jeans London originated from the fashionable Portobello area of London in 1973 as a result of the efforts of three NRI brothers. In a very short span, the brand became the surmount selling denim brand in England. The company entered the Indian market in 1989 and today is amongst the premium brands in India in this segment. Pepe Jeans is an absolute casual wear brand and sells everything one would associate with such as casual cotton shirts, denim shirts, lightweight jeans, T-shirts, shirts, jackets, cotton casual pants and accessories such as bags, caps, belts, wallets, wrist bands, etc.Lee CooperFounded in London in 1908, Lee Cooper offers a wide range of lifestyle jeans and products to men and women of all ages. In 2006, Lee Cooper International entered into an equal pin venture with Indias largest retailer, now known as Lee Cooper India Pvt. Ltd, u nder which the first franchisee stash away was opened. At present, the company has 31 exclusive brand outlets, 50 shop-in-shops and 250 selling points in India. By the end of this fiscal, it will double the selling points and add 24 new stores to its kitty. The company aims to grow to 100 stores inside the next two years. An investment of about Rs 35-40 crore has been earmarked for retail expansion this year.The competitors at each segment are given belowSuper Premium subdivision (Rs. 2000+)- brands like Tommy Hilfiger, Hugo Boss, AN Jeans, Rocky S JeansPremium member (Rs. 1000-2000)- Pepe, Levis, Lee, WranglerMiddle Segment (Rs. 500-1000)-Most Indian brands cover both Middle and Premium categoriesEconomy Segment (Rs. 300-500)-Ruf n Tuf, Newport, Impact, Thunder as well as in store labels like Westsides SRC and 2Fast4U that are priced mingled with Rs. 375 to Rs. 600Benefits of this field of operation to the organizationsAs compared to the booming international denim market, Ind ia is still emerging. Indian brands havent enjoyed ofttimes supremacy. International brands, which are present in India, are doing extremely well.Competition is increasing with the presence of a number of denim brands in India. To stay ahead of competition, the players will have to raise their standards to international levels only then will they be able to make a strong foothold in the country. both company is coming up with aggressive marketing, packagingal campaigns and constant publicity to make their brand popular. divers(a) companies have been successful in the Indian market using different approaches and different strategies. For example Pepe Jeans London works on a 360 degrees approach on the marketing communications strategy, involving both to a higher place the personal credit line and below the line activities. Billboards print advertising in both national and regional newspapers and all lifestyle magazines constitute Pepes above the line strategy.The companies in the denim market have to ensure that they have strategies that are successful and make a positive impact on the target segment due to all the competition and the challenges that they face in this environment.With the Indian youth becoming increasingly fashion conscious and with spending power being consistently on the rise, making life easier for the fast-growing premium kinsfolk of jeanswear brands. On the other hand, it has been tough times for other segments of the business one of the underperformers being a mass-market jeanswear brand.This instruction helps analyze the progressal strategies of five different popular denim brands in India. This study helps to recognize the success or failure of the brands through the perception that consumers have towards the brand.The study helps recognize the weak points in the strategies.Chapter 2Research DesignThis chapter details the procedures that were apply for obtaining the information needed to structure the marketing explore. I t provides details such as the Purpose, Aim of the study, and eye socket of the study, Objective of the study, Research methodology and Data collection.Aim of the studyThe aim of this study is to observe and evaluate the promotional strategies that are used by Levi Straus, lee and Pepe jeans, Spykar and Deal .Scope of the studyThe study was aimed at understanding and analyzing the promotional strategies implemented by Levi Strauss, Lee, spykar, Deal, Pepe JeansThe research was conducted in the geographic area of 1 city- Bangalore no.th (Karnataka).ObjectivesIt will present the promotional activities used by the major players in Branded Denim industry.It will present the sensitiveness of the promotional strategies that the consumers have.Further the study will spawn some suggestions that could be implemented by the companies.Research methodologyAn analytical study, descriptive and quantitative in nature was undertaken to study the promotional activities used in the Branded Denim industry.Based on the info and knowledge gathered thus, a tool in the form of a questionnaire was prepared to elicit prime data for the study. The customers of the company have been used as the respondents for the study. Questionnaire method was adopted to gather necessary master(a) data.Secondary data was gathered from previous other records, journals, papers and books. The data collected by the study is compiled, classified and tabulated for the purpose of analysis. Analysis was done using averages for data consolidation and interpretation.Methods of data collectionSurvey- done a closed and structured questionnaire administered to 50 respondents of Bangalore City in the area of New BEL way (Bangalore North).Sources of Data collectionThe study required data to be collected from both particular sources and supplementary sources.* Primary research -also known as field research, which involves the conduction and compilation of research for the purpose it, was intended. Question naires were used to collect the primary data.* Secondary research -also referred to as desk research, is initially conducted for one purpose, but often used to support another purpose or end goal. Secondary research was collected from Internet sites, books, journals, magazines and research materials provided by other research. try out design This refers to a set of rules or procedures that specify how a savor is to be selected. We have used simple random samplewhich is a subset of unmarrieds(asample) chosen from a larger set (apopulation). Each individual is chosenrandomlyand entirely by opportunity, such that each individual has the sameprobabilityof being chosen at any stage during the sampling processSample size The number of elements in the obtained sample. The sample size for this study is 50 respondents.Sampling bias This refers to the public opinion that those selected are not typical or representative of the larger populations that have been chosen from. Here we were th rottle to north Bangalore so it does not reflect the bigger side of the actual population.LimitationsThe limitations of the study are as followsQuestionnaires are impersonal, so it is difficult to understand the final results given by the customers also there is a chance that the questions may be misinterpreted, rendering the answer useless to the study.Questionnaires also invite people to lie and answer the questions very vaguely which they would not do in an interview.Though a lot of effort was frame in in at designing the questionnaires, some peoples preferred answers may not have been included, and this also does not allow for much detail.The research was limited to the city of Bangalore (north Bangalore)The research did not include the infrequent customers of the company, so a lot of valuable input could have been lostChapter 3Analysis and InterpretationQ. No. of Male and Female Respondents.GenderNo of RespondentsMale26Female24 sum of money50InterpretationFrom the above graph it is quite evident the numbers of male respondents exceed female respondents.Q. come age of Respondents.ageNo of RespondentsLess than 20120-304230-40640-500Above501total50InterpretationFrom the above chat it can be interpreted that the highest range of respondents belongs to the age group of 20-30.Q. what are the different occupation of the respondents.occupationNo of Respondentsstudents31professional17man of affairs2unemployed0total50InterpretationFrom the above chat it is clear clear that the maximum numbers of respondents are students, followed by professionals.Q Salary of the respondents.salaryNo of RespondentsLess than 2hundred thousand282-4 lakh154-6 lakh6Above 61total50InterpretationSince the most respondents are students and are just employed the salary range is below 2 lakh and for professionals it is 2-4 lakhs.Q Do you buy anything of these brands (Levis, Lee, Spykar, Pepe jeans, Deal).ResponseNo of Respondentsyes43no07 wide50InterpretationIt can be intelligibly inte rpreted that 43 out of 50 Respondents have tried one of the brand and rest have not.Break-up of the different brands bought by the sample groupBrand crapNo. of respondentsLeviLeeSpykarPepeDeal16156121 be50Q Other than the brand you grease ones palms from, Are you aware of the promotional activities followed by other brands.ResponsesNo of respondentsYes40No10total50InterpretationFrom the above chart it can be understood that the people are aware about the promotional scheme of the other brands even if they do not purchase products from the other brand.LeviQ. wherefore did you buy this brand?Characteristics issue of RespondentsGood ServiceGood QualityPriceDesignBrand Name brush off Schemes13102 enumerate50Interpretation it is clearly visible from this chart that most of the people are going for Levis because of the brand piddle.Q. Would you like to purchase this brand again?Willingness to purchase telephone number of respondentsYesNo151 entireness16Interpretation It is clearly vis ible that all those who have purchased this brand want to go again for this brand.Q. Are you aware of the various promotional schemes available in this brand?knowingness make out of respondentsYes16No0 tally16Interpretation all the respondents are aware of the promotional schemes of Levis.Q. As per your knowledge what type of promotion activity is undertaken by the organisationcharacteristicsresponsesadvertizing3 promotion0Personal selling0Social media networking3Sales promotion(discount offers, seasonal worker sales, loyalty programs)10Total16InterpretationIt is plunge that most consumers are aware of the promotional schemes that Levis has in the form of sales promotions. They also seem to be aware of promotions through advertising and social media networks.Q. If yes how were you make aware?Mode of AwarenessNo. of respondentsNewspapersOMagazine Ads6Television Ads0E-Mailer from store2Word of utter9Others1Total16Interpretation it can be interpreted that people are aware of Levis p romotional skills because of tools like newspapers and various emails that are being send from the store.12. What according to you makes the brand more attractive than others?CharacteristicsNumber of RespondentsQuality1Price0More sizes4 relegate customer serve ups2More designs4Brand Name5Brand Ambassador0Total16InterpretationFrom this table we can see that consumers are attracted to the brand due to its brand name- the perception towards the brand is positive and also they feel that more designs are available in this brandLeeQ. why did you buy this brand?CharacteristicsNumber of RespondentsGood ServiceGood QualityPriceDesignBrand NameDiscount Schemes121380Total15InterpretationThe graph shows that maximum people bought the jeans from this brand due to the brand name. Followed by the designs available, and no one bought the jeans due to the discount schemes availableQ. Would you like to purchase this brand again?Willingness to purchaseNumber of respondentsYesNo132Total15Interpretatio nFrom the table it is obvious that a large number of the respondents would buy jeans from this brand maybe because they have a positive perception towards the brandQ. Are you aware of the various promotional schemes available in this brand?AwarenessNumber of respondentsYes12No3Total15InterpretationFrom the table it can be seen that most consumers are aware of the promotional schemes available in this brandQ.As per your knowledge what type of promotion activity is undertaken by the organisationcharacteristicsresponsesAdvertisement5Publicity0Personal selling0Social media networking4Sales promotion(discount offers, seasonal sales, loyalty programs)6Total15InterpretationMost of the consumers are aware of the sales promotion schemes like discount offers, seasonal sales, followed by advertising and social media networking.Q.. If yes how were you made aware?Mode of AwarenessNo. of respondentsNewspapersOMagazine Ads2Television Ads0E-Mailer from store2Word of mouth7Others1Total12Interpretati onIn this we can see that most consumers were made aware of the available promotional schemes through word of mouth followed by e-mailer from store as well as magazine ads. None were aware of the television ads of the brand.Q. What according to you makes the brand more attractive than others?CharacteristicsNumber of RespondentsQuality1Price1More sizes2Better customer function2More designs4Brand Name5Brand Ambassador0Total15InterpretationAs can be see, the brand is found to be attractive due to the brand name and the positioning of the brand, followed by the fact that consumers perceive that plenty of designs are available in this brand. Better customer helper also seems to have made an impact on the consumer.SpykarQ. Why did you buy this brand?CharacteristicsNumber of RespondentsGood ServiceGood QualityPriceDesignBrand NameDiscount Schemes024000Total6InterpretationThe primary reason that the respondents seem to have bought the jeans was since they perceive the jeans to be cheaper than the other branded jeans. The next reason was since the jeans were perceived as good quality. Hence Spykar can be said to be a value for money brand.Q. Would you like to purchase this brand again?Willingness to purchaseNumber of respondentsYesNo33Total6InterpretationOnly have the consumers who bought the product have the willingness to repurchase the product. The reasons could be that they were dissatisfied with the design, or with the service.Q. Are you aware of the various promotional schemes available in this brand?AwarenessNumber of respondentsYes0No6Total6InterpretationOut of the six respondents who had purchased the jeans from this brand, none were aware of any promotional schemes that were conducted by the company.Q. As per your knowledge what type of promotion activity is undertaken by the organisationSince no one was aware of the promotional schemes, this table was Not ApplicableQ. If yes how were you made aware?Since no one was aware of the promotional schemes, this t able was Not ApplicableQ. What according to you makes the brand more attractive than others?CharacteristicsNumber of RespondentsQuality1Price3More sizes0Better customer run0More designs2Brand Name0Brand Ambassador0Total6InterpretationThe main reason that people seem to go for this brand is the price since the jeans are more pocket friendly as compared to the other branded jeans.Pepe jeansQ. Why did you buy Pepe jeans?CharacteristicsNo of respondentsGood service0Good quality2Price1Design8Brand name1Discount Scheme0total12Interpretation From the above graph it can be easily interpreted that more people are going for the design in pepe jeans than the other factors.Q Would you like to purchase goods and services from this store again?ResponsesNo of respondentsYes10No2Total12Interpretation From the above chart it is clearly seen that people are willing to purchase the goods and services as they are happy with their experience.Q. Are you aware of the various promotional schemes and offer s available in the store?ResponsesNo of respondentsYes5No7Total12Interpretation From the above chart we can easily understand that people are not much aware of the promotional schemes carried out by Pepe jeans.Q. As per your knowledge what type of promotion activity is undertaken by the organisationcharacteristicsResponsesAdvertisement4Publicity0Personal selling0Social media networking3Sales promotion(discount offers, seasonal sales, loyalty programs)5Total12InterpretationMost of the consumers were aware of the sales promotion strategy followed by Pepe Jeans followed by Advertising.Q .If yes, how you were made aware?CharacteristicsNo of respondentsNews paper2Magazine1Television advert5E-mail0Word of mouth4total12Interpretation From the above chart its clear that tools like television ads and words of mouth plays a very important theatrical role in creating awareness for Pepe Jeans.Q. what according to you made the brand more attractive from the other leading brands of jeans?Charac teristicsNo of respondentsQuality2Price1More fashionable1Better customer services0More diverse design to choose from2More customized product2Brand name4Brand ambassador0total12Interpretation From the above pie chart it can be concluded that the quality, more customized products and more diverse design to choose from are some of the features that makes this brand attractive as compared to others.Deal jeansQ. Why did you buy Deal jeans?CharacteristicsNo of respondentsGood service0Good quality0Price1Design0Brand name0Discount Scheme0total1Interpretation Price is the only characteristics that spanner the customers to stores.Q. Would you like to purchase goods and services from this store again?ResponsesNo of respondentsYes1No0Total1Interpretation The person who has bought the product is satisfied and is ready to try the product again.Q. Are you aware of the various promotional schemes and offers available in the store?ResponsesNo of respondentsYes1No0Total1Interpretation The person see ms to know about the promotional schemes that are carried out by Deal jeans.QAs per your knowledge what type of promotion activity is undertaken by the organisationcharacteristicsResponsesAdvertisement1Publicity0Personal selling0Social media networking0Sales promotion(discount offers, seasonal sales, loyalty programs)0Total1Q. If yes, how were u made aware?CharacteristicsNo of respondentsNews paper0Magazine0Television advertisement1E-mail0Word of mouth0total1Interpretation The person is aware of the product through the television ads.Q what according to you made the brand more attractive from the other leading brands of jeans?CharacteristicsNo of respondentsQuality0Price1More fashionable0Better customer services0More deserve design to choose from0More customized product0Brand name