24809048-Arvind-Ppt

Slide 1: 

Arvind Brands’ Competitive Position in the Indian Branded Apparel Market Presented By: Chandranath Banerjee Debsadhan Chaudhary Kunal Dadlani Prantik Ghosh Rajat Saxena

Slide 2: 

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

Slide 3: 

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 ICICI’s stake by raising US$ 37.19 million Arvind Brands became 100% subsidiary of Arvind Mills in 2005.

Slide 4: 

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

Slide 5: 

THE BRANDED APPAREL INDUSTRY

Slide 6: 

ANALYSIS OF BRAND PORTFOLIO

Slide 7: 

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.

Slide 8: 

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 factors Environmental factors

Slide 9: 

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 retailers dependence Attract consumers seeking variety Increase internal competition Golden rule : Maximize coverage and minimize Brand overlap

Slide 10: 

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 ---- ----

Slide 11: 

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 men’s sportswear, men’s Jeanswear, junior Jeanswear

Slide 12: 

Why so many brands ?

Slide 13: 

Competition

Slide 14: 

Major Competitors Of Arvind Brands

Slide 15: 

Madhura Garments It’s was the garment division of Indian Rayon and 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 Spencer’s, Tommy Hilfiger, Polo, Ralph Lauren, and several others . It distributes its brands through its own retail chains namely Planet Fashion and Trouser Town.

Slide 16: 

Brand Portfolio of Madura Garments

Slide 17: 

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

Slide 18: 

RAYMOND’s BRAND PORTFOLIO

Slide 19: 

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.

Slide 20: 

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

Slide 21: 

Levi Strauss’s Brand Portfolio

Slide 22: 

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

Slide 23: 

ARVIND’S GROWTH STRATEGY

Slide 24: 

ARVIND’S GROWTH STRATEGY(Cont..)

Slide 25: 

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

Slide 26: 

OPPORTUNITIES Changing retail scenario Rapid growth in age group of 15-44 years Ability and willingness in India THREATS Competitors like Raymond, Bombay Dyeing, Madura Garments Cheap imports from China, Thailand, Bangladesh Excise duty

Slide 27: 

PORTER’S FIVE FORCES MODEL

Slide 28: 

COMPETITIVE RIVALRY Competitors adopting aggressive growth strategies as well as eyeing top cities Huge number of competitors Stiff competition from small town stores and specialty stores

Slide 29: 

THREAT OF NEW ENTRANTS

Slide 30: 

THREAT OF SUBSTITUTES

Slide 31: 

BARGAINING POWER OF SUPPLIERS

Slide 32: 

BARGAINING POWER OF CUSTOMERS

Slide 33: 

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

Slide 34: 

POP & POD In this case, Arvind’s POD’s are not well defined. Their offering, target audience and positioning is very similar to its competitors.

Slide 35: 

CHANNEL STRATEGIES Arvind was shifting its focus from multi brand and small town stores to company-owned stores

Slide 36: 

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

Slide 37: 

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.

Slide 38: 

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 )