Wills Lifestyle_Brand Extension[pgp30380]

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WILLSFromCigarettesTo

Lifestyle

ITC – The Company

One of India’s most Admired and Valuable company-Market Capitalization: over US $ 40 Bilion

A USD 8 billion enterprise by Revenue- ~58% of Net Revenue from non-Cigarette segments

Leading Fast Moving Consumer Goods marketer in India- Established several world class brands in the last 10 years

The only Indian company to feature consistently amongst theTop 10 global FMCG companies

Only Indian FMCG company to feature in Forbes 2000 List

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ITC

’s B

usi

ne

ss P

ort

folio

3

ITC

’s B

ran

ds

for

Ind

ian

C

on

sum

ers

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Source: Audited Financial Results, ended 31st March 2015,http://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterly-results.aspx

41%

21%

3%

19%

12%4%

Segment Revenue

FMCG - Cigarettes

FMCG - Others

Hotels

Agribusiness

Paperboards, Paper & Packaging

Others

ITC Category Wise Segmentation

• Generates 80-85% of ITC’s profit

Cigarette FMCG Business

• Lowering its losses every year and it is expected to breakeven in 2014-15. The segment's losses declined from Rs195.49 crore in 2011-12 to Rs 81.26 crore in 2012-13

Non-Cigarette FMCG Business

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http://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterly-results.aspx

Wills – ITC’s Cigarettes BusinessITC is the market leader in cigarettes in India

The Wills brand is estimated to be worth Rs 1,500 crore and is second only to Gold Flake, also owned by ITC, which is valued at nearly Rs 2,500 crore

Segment-wise Gross Revenue of FMCG-Cigarettes is 41%

Cigarettes still generate 80-85% of ITC’s profit

ITC’s cigarette sales by volume were estimated to have shrunk 9% year-on-year

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Wills Lifestyle – ITC’s Lifestyle Retailing

ITC's share is not more than 4% in the apparel retail

Top-of-the-line garments Wills Lifestyle plus John Players -- contributes a little over 2 per cent of ITC's FMCG business

Segment-wise Gross Revenue of FMCG-non Cigarettes is 21% . Wills Lifestyle contributes 60% to ITC's lifestyle retail revenue

Wills Lifestyle contributes almost 80% to ITC's lifestyle profits

Increasing average billing value by 15-20% year-on-year with a more premium mix

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Why Brand Diversification?

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Brand DiversificationHigh incidence of taxation and a discriminatory regulatory regime on cigarettes in India

The share of legal cigarettes in overall tobacco consumption has progressively declined from 21% in 1981-82 to below 12% in 2014-15 even as overall tobacco consumption has increased in India

The declining sales of cigarettes, the proposed ban on advertising (Prohibition of Advertisement and Regulation Bill 2001), the increasing anti-tobacco campaigns and the experience in developed countries seemed to suggest that tobacco would no longer be a profitable business in the future

ITC decided to diversify into non tobacco businesses

ITC's diversification, especially into areas such as branded garments, aimed at improving its brand image, which, in turn, may help it grow its core business

The lifestyle retailing business grew revenue by 20% in 2013-14. The premium-end of the market which was earlier only 5 per cent has grown to about 10-15 per cent of the whole market share

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Indian Apparel Retail - Category Growth

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India apparel retail industry value:

$ billion, 2010–14

Source: Marketline

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India apparel retail industry value forecast:

$ billion, 2014–19 SOU

Indian Apparel Retail – Growth Forecast

Source: Marketline

WILLS LIFESTYLE

In 2000, ITC entered the lifestyle retailing space with the launch of Wills Lifestyle.

Wills Lifestyle has established a nationwide presence with upmarket product range available in exclusive 104 Wills Lifestyle stores across 44 cities and more than 500 ‘shop-in-shops’ in leading departmental stores and multi-brand outlets

Brand Value: Elegance, Sophistication and Exclusivity

Imagery: International premium quality and vitality

Tagline: Enjoy the Change

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WILLS LIFESTYLE Mission:

To be a one-stop, global solution provider for lifestyle and become synonymous with “Quality Lifestyle across the Globe”

Vision:

To create a fashion wardrobe that complements every facet of your personality at work, party and a special occasion called “LIFE”

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Timeline

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Entry into LifestyleRetailing space –2000

Wills Sport - 2000

Brand extensions

Wills Classic - 2002

Wills Clublife - 2003

Wills Signature 2006

Wills personal care segment - 2005

Title partner of

the country's most premier fashion event – 2006

Preferred Brand for rich & famous -2009

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2000

Racy stripes, Energetic prints

and Trendy dobbies

2002

New age work wear, trendy,

innovative, chic and stylish;

Rreflects the work

ethos of gen next

2003

Sensuous satin

and sequins embellished on jacquards and alluring prints

2006

a tribute to the evolved

consumer’s fashion sensibilities;

Created by the leading stylists

Relaxed Wear Formal Wear Evening Wear Designer Wear

Product Price Place Promotion

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Wills Lifestyle is considered as a brand that is at the forefront of fashion

It positioned itself in the premium category

In 2007 it was named amongst the Top Luxury Brands of India by Time magazine

It is able to charge a premium from its customers

The Pricing of WILLS LIFESTLE Products is High

e.g. Men’s Shirts : Rs. 1500 – Rs. 5000

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Exclusive 104 Wills Lifestyle stores across 44 cities

More than 500 ‘shop-in-shops’ in leading departmental stores and multi-brand outlets

The online stores (The chunk of online customers is very small, approximately only 5 per cent of the whole)

Coming up of more exclusive stores in the emerging premium mall & high street catchments

Plans to scale up its retail presence by expanding the footprint in smaller markets through the franchising model

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Online Store

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Association with country’s most exclusive & prestigious fashion event

WILLS LIFESTYLE

INDIA FASHION WEEK

1

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Loyalty Programme

CLUB WILLS

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In 2008, developed a campaign voicing the thought

'The World Wants to be You'

The intent has been to take

consumer interest in the

brand to a new high

https://www.youtube.com/watch?v=qXXtpdKugos

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https://www.youtube.com/watch?v=qXXtpdKugos

The World Wants to be You

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Tie-ups with leading stylists of the country:

Anamika Khanna, Ashish Soni, Manish Malhotra, Manish Arora and Shantanu-Nikhil

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Seasonal Discounts & Redeemable coupons

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Brand Positioning

Market Segmentation

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Geographic Segmentation

Demographic Segmentation

Behavioral Segmentation

Psychographic Segmentation

Market Segmentation

Target Group

• Fashion-conscious people

• Class I cities

• Professionals (studying/working)

• Both Men and Women

•Age: 20 - 34 years

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Competitors

It is a mélange of comfort,

perfection and elegance.

A global brand, and one of the best

known in the world, United Colors of Benetton has an

international style that combines color, quality and fashion.

The brand epitomizes

classic American style and effortless

cool.

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Competitive Frame of Reference

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POPs & PODsPOPs

• High Quality/ Comfortable to wear

• Fashion Space

• Premium Pricing

PODs

• Association with country’s most exclusive & prestigious fashion event

• Tie-ups with leading stylists

• Unique fabrics

• The chain of exclusive stores

• No Mass Media Advertising

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Perceptual Map

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Fast-Fashion

Style (Time Less Fashion)

Prestige PriceAffordability

Brand Positioning

“ITC's Wills Lifestyle presents a complete fashion wardrobe that complements every facet of your personality at work, when you are relaxed, while you party and for those special occasions.”

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Brand Appearance

RED – “ red carpet treatment “ & “paint the town red”

(VIP, celebrities or high profile person & celebration, partying, fun &

excitement)

WHITE – “Peace, Perfection & Sophistication”

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Brand PersonalitySynonymous with elegance and style that is effortless and chic, Wills Lifestyle presents a premium fashion wardrobe for men and women.

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Thus, Wills Lifestyle has adopted Sophisticationas its Brand Personality

Brand Resonance Model

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Brand Resonance Model

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• International Premium Quality

• Vitality• Superior consumer

value• Global Standards • Fashion

• High-end Lifestyle• Premium clothing

• Inspiration• Self-expression

• Quality• Superiority

• EmulationWills Lifestyle users areo Stand outs from the crowdo Objects of everyone's envy

ConclusionAll of this has led to:• Creating a distinctive identity in the premium western

wear market

• "The Most Admired Women's wear Brand of the Year“

• “The Most Admired Exclusive Retail Chain of the Year“

• "Most Admired Fashion Brand of the Year - Fashion Forward“

• “The Most Admired Exclusive Brand Retail Chain of the Year”

– Wills Lifestyle

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References

1. ITC Corporate Presentation, Available at:http://www.itcportal.com/about-itc/shareholder-

value/ITC-Corporate-Presentation.pdf(Accessed: June 29, 2015)

2. ITC: Building World-Class Indian Brands, Available

at:http://www.itcportal.com/businesses/pdf/brand-booklet.pdf (Accessed: June 29, 2015)

3. (March, 2015) Retail Industry in India, Available at: http://www.ibef.org/industry/retail-

india.aspx (Accessed: June 30, 2015)

4. Database, Available at: http://advantage.marketline.com/ (Accessed: July 9, 2015)

5. Database, Available at: http://www.portal.euromonitor.com/portal/ (Accessed: August 22,

2015)

6. Wills Lifestyle, Available at:

http://www.superbrandsindia.com/images/brand_pdf/consumer_3rd_edition/Wills%20Lifestyle.

pdf (Accessed: June 30, 2015)

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References

7. T R Vivek (2004) 'Tobacco ban forces ITC to stub Wills', Business Standard, 21st July

8. Manish Basu (2015) 'ITC to raise prices of all its key cigarette brands', Live Mint, 13th March

9. NAMRATA ANAND, VANDANA KHETARPAL, (2014) 'GROWTH OF APPAREL INDUSTRY IN

INDIA: PRESENT AND FUTURE ASPECTS ', , II(I)

10. Sreeradha D Basu (2010) ''We try to make fashion more accessible'', The EconomicTimes,

21stA April

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Acknowledgement

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The Brand Analysis is done under the able guidance and support of

Dr. Sameer Mathur, Ph.D.

Carnegie Mellon UniversityMarketing Professor (IIM Lucknow)http://www.BuddingMarkets.com

By: Mehak Jindal | PGP30380 | IIM Lucknow

Brand Management Course

http://www.buddingmarkets.com/

Wills Lifestyle_Brand Extension[pgp30380]

Marketing

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