Abhishek Luck Ppt

7/31/2019 Abhishek Luck Ppt

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Arvind Brands Competitive Position

in the Indian Branded ApparelMarket

Presented By:

Abhishek yadav(luck)-03

DFMRM-09/02

To----zebrra


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CONTENTS

Introduction

Apparel Industry

Analysis ofArvinds Brand Portfolio

Arvinds Competition

Growth Strategies

SWOT Analysis

PORTERS FIVE FORCES AnalysisBranding Strategies

Issues

Conclusion


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INTRODUCTION

Established in 1931 by the Lalbhai brothers of Ahmedabad.

Birth of three new units in 1993 - textile, telecom and garments

division.

Arvind Brands Ltd was a Rs. 3.50 million subsidiary Arvind Mills

Major stakeholder - ICICI , 2004.

Arvind Mills reacquired ICICIs stake by raising US$ 37.19 million

Arvind Brands became 100% subsidiary of Arvind Mills in 2005.


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INTRODUCTION

All the brands under the Arvind name were growing at a

healthy rate in 2004.

Plans to sustain growth by increasing retail presence.

Saif Ali Khan appointed brand ambassador for the

Newport brand in 2005.Strategy was increasing distribution and penetration.

Competitive edge-zero excise duty and economies of scale


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THE BRANDED APPAREL INDUSTRY

Multi fibre agreement

Characteristics of the industry.

Growth of the industry.

Important segments-jeanswear

Important trends in the industry.

Major players-Bombay Dyeing , Raymondsand Pantaloons.


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Parameters to judge portfolio

Maximizing brand equity : one

brand should not harm others.

Branding strategy according tobreadth and depth.

Segmentation, targeting andpositioning of brands.


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Breadth of branding strategy

The number and nature of different products linked to

the brands sold by a firm.

Depends on:

Aggregate market factors

Category factorsEnvironmental factors


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Depth of a branding strategy

Number and nature of different brands marketed in the

product class sold by a firm.

Helps in

Increase shelf presence and retailersdependence

Attract consumers seeking variety

Increase internal competition

Golden rule : Maximize coverage and minimize

Brand overlap


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Arvind Brand Basket

Flying Machine Newport Ruf n Tuf Excalibur

Launched 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

faced

Hike in exise to

8%

Hike in exise to

8%

Distribution

hurdle

----

Retailer own outlet own outlet Big Bazaar

Brand

ambassador

Abhishek

Bachchan

Saif Ali Khan Akshay kumar ----

Tag Line Who Needs

Phoren?

The Measure

of Success

---- ----


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International Brands

Arrow Lee Wrangler Tommy Hilfiger

Licensed Cluett,

peabody & co.,

USA

VF corporation VF corporation JV with

Murjani group

Age group 27-35 4-14 & 17-25 17-25 &25-40 18 & Above

specifics Four sub brand

Classic

Premium

Urban

Sports

Adjudged the

images fashion

award most

admired

Jeanswear

brand

Fashion

conscious

Love wearing

denim on

weekend

Retail

ambience was

given

importance

Introduced

mens

sportswear,

mens

Jeanswear,

junior

Jeanswear


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Competition


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Major Competitors Of Arvind Brands


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Madhura Garments

Its was the garment division of Indian Rayonand Industries Ltd. A flagship company of the

A V Birla Group Company.

Owns perpetual license for premier brands

like Louis Philippe, Van Heusen, Allen Solly,Peter England, Byford, Elements and SF (San

Frisco).

Preferred global supplier of international

brands like- Marks and Spencers, Tommy

Hilfiger, Polo, Ralph Lauren, and several others.

It distributes its brands through its own

retail chains namely Planet Fashion and

Trouser Town.


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Brand Portfolio of Madura Garments


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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 someof the countrys most prestigious brands Raymond

Finely Crafted Garments, Manzoni, Park Avenue,

ColorPlus, Parx, Notting Hill and Zapp!

All of Raymonds brands are available at exclusivebrand stores, The Raymond Shop retail outlets and

multi-brand outlets across India and the Middle East


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RAYMONDs BRAND PORTFOLIO


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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.


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LEVI STRAUSS & CO.

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

In 2009 it completed 15 years in India

It expanded its portfolio from being a jeans only brand to emerge

as the complete casual wear brand

4 sub-brands Sykes, 501, Red Tab and Red Loop


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Levi Strausss Brand Portfolio


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PROVOGUEThe 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

Provogues brand statement Redefining fashion and its innovativemerchandise 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"

PROVOGUES PRODUCT RANGE INCLUDE:

INNERWEAR , T-SHIRT , BOTTOMS , JACKETS & BLAZERS , DENIM , FORMAL

SHIRTS , LINEN SHIRTS , CASUAL SHIRTS, FOOTWEAR , SUNGLASSES ,

FRAGRANCE , CAPS, BAGS , BELTS


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ARVINDS GROWTH STRATEGY

As on 2005, Arvind was in a comfortable position.

Focus on retail------Company want to achieve 80% of its sales

through apparel.

Change from Centralization to Decentralization

Clustering of Brands


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ARVINDS GROWTH STRATEGY(Cont..)

Globalization Strategy

Acquiring rights of Reds in North and south America

Exclusive stores in Gulf to showcase its brands

Launching of Spectrumplaza.com

Tie ups with Indiatimes.com and rediff.com


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SWOT ANALYSIS

Strong portfolio of domestic and international brands

Economies of scale through complete integration

Latest manufacturing tools

Wide geographical presence

STRENGTHS

WEAKNESS

Lack of fresh ideas

Presence in only big cities

Not doing enough to build brand equity


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OPPORTUNITIESChanging retail scenario

Rapid growth in age group of 15-44

years

Ability and willingness in India

THREATSCompetitors like Raymond, Bombay

Dyeing, Madura Garments

Cheap imports from China, Thailand,

Bangladesh

Excise duty


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PORTERS FIVE FORCES MODEL


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COMPETITIVE RIVALRY

Competitors adopting aggressivegrowth strategies as well as eyeing

top cities

Huge number of competitors

Stiff competition from small town

stores and specialty stores


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THREAT OF NEW ENTRANTS

Lucrative market for

international brands

Low entry barriers in

unorganized retail sector


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THREAT OF SUBSTITUTES

Plenty of offerings in premium

and super premium category

Small town stores proximity,

home delivery, personal attention

Growth in online shopping


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BARGAINING POWER OF SUPPLIERS

Increased no of players

increases bargaining

power of suppliers

Not all companies have

complete integration

(like Arvind)


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BARGAINING POWER OF CUSTOMERS

Low switching

costs

Low customer

loyalty


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BRAND HIERARCHY

The apparel industry did not follow the umbrella branding strategy

Arvind divided its brands into 4 clusters and each cluster had its distinct

marketing strategies

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


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POP & POD

are the attributes or

benefits which the brand

shares with other brands

Points ofParity

are the USPs of a brand,

distinct from othersPoints of

Difference

In this case,ArvindsPODsare not well defined. Their offering, target

audience and positioning is very similar to its competitors.


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CHANNEL STRATEGIES

Indirect Channels

ex. Multi brand store, small town

retailers

Direct Channel

ex. Company-owned stores

Arvind was shifting its focus from multi brand and small

town stores to company-owned stores


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PUSH & PULL STRATEGIES

Pull Strategies

are the ones directed towards end

consumers ex. Television ads

Push Strategies

are directed towards distributors and

retailers. Ex. Trade discounts

Arvind mainly concentrated on Pull strategy ex. endorsements by

Bollywood stars like Akshay & Saif. Push Strategieswerent required as

they were concentrating on company-owned stores


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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.


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ISSUES

Lack of new ideas

Inability to keep up with the changing market demands

Unwilling to place its products in multi-brand stores

thereby losing customers in the tier-II, tier-III cities

Tough competition from local and international players

Just one offering for the bottom of the pyramid (Ruf n Tuf)


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Abhishek Luck Ppt