INTRODUCTION In today’s intensely competitive environment, companies today are constantly looking for ways to satisfy customers by having a better understanding of changing customer preferences. The over changing market characteristics have huge impact on corporate decisions. The global environment also poses several complexities to the sellers in understanding the market. Within the current marketing environment, competition between products and services is becoming increasingly tough. This report discuss about the branded garments against local garment traders including producers of tailor made garments and comparing their demand in Goa. The main base of our study is to know the competition faced by the local garment stores when branded garments are preferred by most of the consumers, while, the branded stores facing the same competition against the local traders. A customer thinks very differently, uniquely that is called consumer behaviour. A customer wants to get the full value Page | 1
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INTRODUCTION
In today’s intensely competitive environment, companies today are constantly looking for
ways to satisfy customers by having a better understanding of changing customer
preferences. The over changing market characteristics have huge impact on corporate
decisions. The global environment also poses several complexities to the sellers in
understanding the market. Within the current marketing environment, competition
between products and services is becoming increasingly tough.
This report discuss about the branded garments against local garment traders including
producers of tailor made garments and comparing their demand in Goa. The main base of
our study is to know the competition faced by the local garment stores when branded
garments are preferred by most of the consumers, while, the branded stores facing the
same competition against the local traders.
A customer thinks very differently, uniquely that is called consumer behaviour. A
customer wants to get the full value for their money whatever he buys he wants full
satisfaction from that product. Our study also includes the consumers taste and demand
for type of garments. Their preference towards branded garments depends on the income
of the people, age – gender, regional (city/town) demand for local or branded garments,
effect on location of the market, seasonal variations.
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Objectives:
1. To study the competition faced by the branded garment against the local garments.
2. Consumer Perception for the above and their preferences.
Limitations:
1. Some store information is confidential like sales, future profit etc.
2. The survey does not include brand’s factory outlets
3. Sample size is limited.
4. Seasonal variation may lead to fluctuation in the statistical figures.
5. The survey was conducted for stores in the vicinity of Margao and Panjim.
Methodology
The study involves Primary survey through directly interviewing the branded
stores, local stores, and the consumers:
1. The owners of the Branded stores was interviewed to find their turnover,
problems faced, importance of location, and seasonal changes in the sales,
classifying their customers.
2. Similarly local garment stores were also interviewed to find about their
customers, sales etc.
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3. The customers of both; i.e. the Branded as well as local stores were
interviewed in different forms: Questionnaires: circulation of questionnaires
either physical or digital (E-mail), Interviews and observations.
- It involves use of secondary sources such as web and other research articles
Printed by various financial institutions and other journals and magazines.
Statistics Tools
Tabulation
The collected data is arranged in the form of rows and columns that is in the tabulation
form. The purpose is to simplify the presentation and to make comparisons.
Percentage analysis
The collected data which is present in the form of percentage will help us to get the clear
cut picture of the contribution of various responses.
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BRANDS AND BRANDED GARMENTS IN
INDIA
Foreign companies looking to tap the potential of the Indian market need to understand
that India is not one market, but many markets fragmented by income and growth rates,
language, culture and geography. There are 27 States, 7 Union Territories 587 Districts.
More than 70% of the people live in more than 550,000 villages. Languages are split into
18 major officially spoken, within which there are more than 482 different dialects and
sub dialects.
The design and colour sensibility and art form differ not only from State to State but in
many cases may be from district to district. More than 100 textile art forms are practiced
in different parts of the Indian States.
Branding was introduced to differentiate homogenous products such as clothing. Clothing
items (products) can now be bought according to the psychological elements that they
represent and not only for their physical characteristics and need-satisfying properties.
After liberlisation of Indian economy, there emerged more than 100 leading brands that
jostled for consumer mind space. Van Heusen, Louis Philippe, San Frisco, Peter England,
Allen Solly and Byford (of Madura Garments, a division of Indian Rayon); Arrow, Lee,
Raymond, with its offerings of Park Avenue, Indigo Nation, Wills Lifestyle, promoted
by ITC; Zodiac; Provogue, Adidas, Tommy Hilfiger, Lacoste, Benetton, Reebok, Nike,
Esprit, Levis etc.
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India is also a manufacturer and exporter of international brands for clothes like Gap,
Tommy Hilfiger, Espirit, Wills Lifestyle, Peter England, Allen Solly etc, after china and
Bangladesh. These developing countries export manufactured clothes with the brand tags
to the developed countries like Middle East, US, and Europe. As these countries, utilize
their labour for the manufacturing of international brands.
However, attitudes are evolving as advertising and improving living standards foster
greater brand awareness and loyalty. There is no shortage of opportunities for companies
that take the time to understand this complex marketplace of India.
FACTORS EFFECTING BRANDED GARMENT MARKETS
PRICE- The price has been defines as an important factor which influences the
brand image. The price determines the product quality and preference by its
consumer. The consumer generally confirms their standard price with the standard
quality of a product and determines whether it’s too low or too high prior to
product purchase, consumers evaluates a particular price comparison with a price
range based on their experience of the market.
Quality- Brand names can be Sign of Quality, either as a result of personal
experience with the brand or from judgment driven by advertisements. Most of
the brands are focused on their quality to increase margins. Customers always
believe in good quality products. The brand prefers to maintain their quality
which demands the price for its product. A good quality branded garment, thus,
effect the price range and the brand loyalty.
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Trends & Fashion- Branded garments consistently changes the trends and
fashions. Branded garment manufacturers are innovative and dynamic for every
season in terms of fashion. They create their own fashion for clothing and
accessories. Consumers consider fashion as part of an overall budgetary spend, so
apparel purchases now compete directly with other choices from the technology,
entertainment, beauty and general lifestyle categories for the discretionary rupee.
The urban fashion defines attitude, reflects life style and individuality. Thus,
influenced by brand endorsements by celebrities which creates a mindset of
fashion on the young generation.
Status Symbol- Branded apparels demand a high price for its quality offered.
Thus, creating a symbol of status, as observed, most of the branded clothes is
worn by the people falling in the category of high income, brand conscious etc...
The major cities like Mumbai, Pune, Delhi, Kolkata which have increasing market
demand for branded garments.
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GOAN SCENARIO TOWARDS BRANDED
GARMENTS AND LOCAL GARMENTS
Over the years, the Indian and the International garment brands are growing in the last
fifteen years. A few branded garments stores were present in Goa like the well old
Raymond’s. The major garment/ clothing market was in the hands of the tailor stitched
clothes which were in fashion and a few local garments retails selling multi-branded and
unbranded garments. Most of the branded garments franchise was located in Panjim for
last 10 years and now increasing at a slow pace in Margao, Mapusa & Vasco.
The major branded stores hubs are located in Margao and Panjim as these market places
are centrally located in the north and south of Goa. Panjim being the capital and a tourist
hub, the brand stores are recently establishing as the people’s preference for brand is
increasing due o brand awareness among the youth. With increase in the standard of
living and change in preference, attitude, and life style of the consumers, Goa has become
the next business destination for brand garments industry. People of this state are
followers of new fashion and trends irrespective of Age, class, etc.
TYPES OF BRANDES AVAILABLE IN GOA
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A few brands which are presently available in Goa mostly having their outlets at Margao,
Panjim , Vasco and Mapusa are- Raymond’s, Zodiac, Allen Solly, Peter England ,
Weekenders, Fab India, K-Lounge, Pepe Jeans, Levis , John Players, Live-in stores,
Spykar, Switchers, Adidas, Wranglers, Lilliputs, Ruff etc. The above brand consists of
men’s wear, women’s wear, kids wear, sports, and casuals to office wears.
Thus, Brands build customer loyalty by delivering excellent value no matter the price
point-high, low, or medium. Value includes Styling, Durability, Quality fabrics, and
consistent fit. To the consumer, a brand name represents familiarity, consistency, and
confidence in performance. Brand names when linked with lifestyle, self-expression, and
aspirations symbolize intangibles that are desirable to the consumer.
BRANDED GARMENTS IN GOA
The attitudinal shift of the Goan consumer in terms of "Choice Preference", "Value for
Money" and the emergence of organised retail formats have transformed the face of
Retailing branded garments in India. In the last few years, Goans have gone through a
dramatic transformation in lifestyle by moving from traditional spending on food,
groceries to lifestyle categories that deliver better quality and taste towards branded
clothing. The Goan brand garment retails growth can be attributed to the several factors
including
BRAND AWARENESS- the people of Goa are much aware of the brands available in the
Indian Markets. The young generation has knowledge of brands due to their marketing
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tactics towards the youth and brand loyalty. The brand awareness is created or promoted
by the branded garment manufactures rather than the franchise outlets.
More than 40% of the population in Goa is employed in other foreign countries, where,
such brands are easily available. Thus creates, demand for branded garments in the Goan
markets. Also, the urban population demands for the branded garments due to change in
lifestyle of the people.
ADVERTISEMENTS AND PROMOTIONS- The brands are advertised by different
Medias. The most effecting is the Television in Goa that reaches to every corner of the
state. Consumers having widespread knowledge of internet, where such brands are been
promoted through social networking, blogs, promos etc...
Advertisement plays a vital role for creating demand to particular brands. As per the
survey, brand awareness being high in urban population. Thus, most of the branded
retails or franchise has tote bags which move onto many hands. This marketing strategy
is opting by most of the local as well as branded garment stores.
INCOME OF THE PEOPLE- Goa has the highest per capita income compared to other
states in India. The people of Goa have high income among the other states in India,
through foreign remittances, business, tourism, and services. A monthly income of
above Ten Thousand Rupees prefers branded garments than local clothing as a Symbol of
Status. Also, the Goan people are fashion conscious and have a higher spending capacity
for quality products, which in turn demands for branded outlets at urban locations.
CREATING BUSINESS OPPORTUNITIES- the branding franchise or retails create
business opportunity in the urban areas. In Goa, the capital city has many brand outlets
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for past many years. Though, such a brand did not have much recognition and choice at
the early period, due to lack of brand awareness. In the year 2000, people demanded
quality garments as there were Chinese garments imported to India. Thus, creating brand
outlets in the urban locations. According to the demand at Panjim city, some of the
franchises moved towards Margao forecasting the demand for branded garments and
saving traveling expenses to the capital city for shopping in branded outlets.
LOCAL GARMENT MARKET IN GOA
The local garments are classified into tailor made and readymade unbranded clothes.
Most of the people are attached to local garments as branded garments are recently
emerging into the Goan markets.
The local garment stores are located in cities, towns, villages and every corner of the
market. All the Consumers categories attract to such type of stores, as these stores have
the basic idea of the consumer preference, variety and choice for clothing. Most of the
middle class and the lower class population purchase from such stores due to
affordability and choice. The quality may vary from the branded garments also there are
imitations of branded patterns. The local garments also consist of China manufactured
and imported garments which are preferred by the Goan consumers for clothing.
As Goa being a tourist sport, most of the International tourist prefer Indian fabric like
cotton and silk form the local markets, beach side local garment stores as International
brands are available in their home country. Thus, the local market in Panjim depends on
the International tourist as being a tourist spot.
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The local garments are mostly brought from different parts of our country as India is a
manufacturer of fabric that enhances small scale industry like Indore, Gujarat, Nashik,
Bangluru, Delhi, Kolkata, Mumbai etc in India and globally from Bangkok, China, Italy
etc.
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MARKET STRATEGIES
Market strategy is defined as an action plan for influencing customer choices and
obtaining a market share. Market strategy should entice customers to buy the product or
service. Market strategy encompasses customer perception of the relationship between
price and quality.
Is the quality of the product or service worth the price?
Is the price too low for the quality the customer desires?
Is the price higher than the customer's perception of quality?
Market research identifies the price and quality relationship customers perceive to be
important. Remember, customer perception is the bottom line. Market strategy also
includes the distribution channels for the product, pricing and terms of sale, promotion
and advertising plan, marketing budgets, inventory selection and management, visual
merchandising, customer relations and an evaluation of the marketing strategy.
The marketing plan provides information on what the market will be (retail, wholesale)
and what specific customer groups will be targeted, what will be sold, where it will be
sold, and how wide the area of distribution will be.
Ideally, market segments with a potential for high sales, profits, growth and a minimum
of competition are the most attractive. A marketing strategy is a process that can allow an
organization to concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage. A marketing strategy should be
centre around the key concept that customer satisfaction is the main goal.