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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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