AIM

An analysis on market opportunity for Benetton for coming up with a separate fashion accessories brand called BENETTON BLING

Objectives:
y y y To briefly study the Benetton group To analyze the factors influencing consumer preferences in regard to accessory purchase in India. To suggest recommendations to facilitate success of Benetton bling

OVERVIEW OF THE APPAREL INDUSTRY The Indian apparel industry is one o f the major sectors of the Indian econo my due to the huge amount of investment, earning o f revenues, generation o f emplo yment and trade. The number o f apparel and fashio n manufacturing units in India are approximately 30,000 and this sector has around 3 millio n people working under it. It is also a major earner o f foreign exchange for the econo my. The major features of the Indian apparel industry are a huge product variety, short product lifecycle, unpredictable demand and a lo ng supply process. In recent years, the industry has seen a considerable conso lidation in retail and an increased use o f e-co mmerce. The important segments that come under the apparel industry include clothing for men, women and kids, wedding wear for brides and grooms and intimate apparel. There is also a vast apparel who lesale distribution network in India. The major channels of distribution for apparel include brick and mortar, catalogue and internet. The market shares of the different channels are:

Category Brick and Mortar Catalog

Sales $ Billion 169.256 7.177

Market Share (%) 92.9 3.9 1

Online/ Internet Total

5,873 182.306

3.2 100.00

The global textile and apparel industry in total stood at $550 billio n in 2007, out of which, the Indian textile and apparel industry stood at $52.5 billio n in 2007. The industry is expected to grow to $805 billio n by 2015. In India, about $32 billio n is used in the domestic market and the rest $20.5 billio n is used for exports. About seven markets account for 75% of the textile and apparel export, the US market being the largest at 32% of the 75%. Since 2008, recessio n and the global econo mic slo w down have been effecting the Indian apparel industry. The exports have also seen a decline due to this. However, it will soon emerge fro m this down turn. http://www.eworldtradefair.co m/indian-apparel-industry-a56.html http://www.fashionproducts.com/fashio n-apparel-overview.html#io http://www.business-standard.com/india/news/kit-indias-textileapparel-industry/345936/

BENETTON GROUP Public (NYSE: BNG) Treviso, Italy (1965) Villa Minelli, Ponzano

Type Founded Headquarters

Luciano Key people Giuliana Gilberto

Benetton, Benetton, Benetton,

Chairman Director Director

Carlo Benetton, Deputy Chairman

Industry

Clothing

Products

Complete list of benetton brands

Revenue Employees Website

1,8 billion (2005) 7,987 (2005) www.benettongroup.com

Benetton Group is a glo bal fashio n brand, based in Treviso, Italy. The name comes fro m the Benetton family who founded the co mpany in 1965. Benetton Group is listed in Milan. Benetton has a network of around 6,000 stores in 120 countries. The stores are managed by independent partners and generate a total Around 6,000 stores worldwide: The development of Benetton's co mmercial network, characterised by prestigious locations in historic and co mmercial centres and by the high level of customer services offered, has been supported by a major programme o f investment worldwide. The Benetton stores carry co mplete collections, as well as a wide selection o f accessories, offering a full range of Benetton style and quality. DESIGN:

A staff o f 300 designers fro m all over the world creates the collections for the casual United Colors of Benetton, the glamour oriented Sisley, the leisurewear brand Playlife. The design team is also engaged in researching new materials and creating new lines for different targets fro m children, men and wo men to expectant mothers, offering them not only practical and modern styles but also maximum co mfort. The result is the latest trends in design and a rich output of many models a year which are realized with co mputer assisted design systems fully integrated with the rest of the co mpany's production phases. PRODUCTION: Consistently high quality is one o f the fundamental characteristics of the Benetton production process fro m the raw materials to the finished garment. A constant commitment to innovation, a crucial factor for development, has always characterized the Groups business organization, from co mmunication to IT, from research into new materials to integrated logistics. Special attention is given to innovation in production, where all systems and equipment are constantly renewed. The Benetton production system, co-ordinated by a high-tech facility at Castrette (Italy) is capable o f turning out over 150 millio n garments every year. LOGISTICS: Benetton has direct control of the logistics phase for both own manufactured and sourced products, and has invested in modelling, organization, and automation o f logistic processes in order to completely integrate the entire production cycle, fro m client orders, to packing and delivery. Automated Sorting System The state-of-the-art logistics operation at Castrette (Italy) has a fully automated innovative sorting system, whose propulsio n is based on electromagnetic fields, capable of handling individual orders for around 6,000 Benetton shops worldwide.

Folded and hanging garments are auto matically sorted, packed into boxes and sent through a one-kilo meter tunnel to the Automated Distribution Center. automated distribution center The Automated Distribution Center covers an area of 30,000 square meters, with a total capacity of 800,000 boxes, and is able to handle 120,000 incoming/outgoing boxes daily with a
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workforce of only 28. The finished product is sent directly to the Group's around 6,000 retail outlets in 120 countries worldwide.

BRANDS:
United Colors of Benetton: A glo bal brand, and one o f the most well known in the world, United Co lors of Benetton has an international style that combines co lor, quality and fashio n. Each season the womenswear, menswear, childrenswear and underwear co llections offer a total look for everyday, for work and for leisure, in the city and outdoors. The Benetton Baby label is a new product line dedicated to the prenatal and the under-fives world.

The brand is present in many other sectors, from the elegant accessories to the eyewear lines and perfumes, fro m the ho me co llection to baby products. The above products are available in selected specialized shops worldwide. Undercolors of Benetton : This is an extensio n of the Benetton brand, featuring underwear, beachwear and sleepwear collections, as well as accessories for women, men and children.

A wide selection of recurring basic co lors is enriched every season with the latest trends. Underco lors is available in its own chain o f stores which now has more than 500 locations in thirty countries and in selected Benetton Shops. Sisley: This is the Group's mo st fashio n forward brand. Sisley presents elegant and seductive collections, with special attention given to the cho ice o f design, fabrics and new shapes. Its creative artists and independent sales teams concentrate their efforts on its image and on strongimpact advertising campaigns. The brand has created the very fashio nable Sisley Young line for children from 8 to 12 years old.

MERCHANDISE MIX:
The breadth and depth of the products carried by retailers is called as merchandise mix. This is also known as Product Assortment. United Colors Of Benetton: Merchandise Assortment ADULT : Woman And Man: United Co lors of Benetton chooses a keyword for the Autumn/Winter 2010-11 collection: freedo m, a clear and simple word with many meanings. In this case, the freedo m we allo w ourselves when choosing our look every-day. United Colors of Benetton has always fo llowed this principle and o ffers even greater freedo m of cho ice for the new winter season.

Accessories:

The Autumn/Winter 2010-11 United Co lors of Benetton accessories and footwear collection explores new frontiers of in terms of shape, material and colour. KID: Mamma: Future mums will enjo y an A/W co llection fro m United Co lors of Benetton thats big on comfort and full o f the new seasons trends.

Baby (0-1 year): United Colors of Benetton chooses a ro mantic, natural mood for the new borns o f the A/W 2010-11 season. Soft fabrics and light, pastel co lours combine with prints and drawings to warm the winter days.

Toddler (1-5 years): In A/W 2010-11 United Co lors of Benetton takes the smallest children by the hand and accompanies them in their new adventures and earliest discoveries. 7

Kid And Tween (6-12 years): For the girls, United Co lors of Benetton have created an imaginary tour around the world, proposing places and moods that evoke the new looks of the A/W 2010-11 season. For the bo ys, its all about the American way o f life.

UNDERCOLORS: Strong Appeal: A touch of provocative sensuality lets us play with lace, sheer fabrics, transparencies and softness. Silk and cotton bring sophistication to homewear ideas. Underwear: The Underco lors of Benetton winter season opens with a cosy, supremely co mfortable collection and a skilful use o f every kind o f cotton. New features include a greater number o f organic cotton jersey articles; a special focus on the brands DNA (with a logo print motif in bright colours); and a new bra designed especially for teens. Basic: Underco lors of Benetton always dedicates special attention to its underwear proposals, even those that are co mmo nly defined as basic, but whose simplicity, clean lines and co lour palette make them indispensable. In fact, in a colour palette limited to white, black and flesh tone, a small world of bras, panties, culottes, brassieres, tops and slips has been created.

FACTORS AFFECTING COSTS

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The BENETTON Group has grown massively in the past years. The co mpany has incurred many costs to achieve this position in the apparel industry. Some o f the factors affecting its costs are as fo llows:  GROWTH AND EXPANSION - The growth and expansio n strategy is one o f the major reasons for the increase in fixed and operation costs for BENETTON. To increase the market share and to strengthen its image, BENETTON has made huge investments to open up retail stores to sell its products through directly-owned retail stores rather than the traditional method of franchise stores that the group used. The Group operates more than 280 who lly-owned shops in different locations which have led to an increase in the costs. With this respect, the increasing property rental costs are also applicable. Also these investments expose Benetton to an additional risk that some of the chosen locations may turn out to be inadequate because of changes in the areas demand scenario, its demographic profile or the location of shopping districts. http://sec.edgar-online.co m/benetton-group-spa/20-f-annual-and-transitio n-report-foreignprivate-issuer/2004/06/30/section7.aspx  COSTS OF RAW MATERIAL - Raw material is one of the major components that add to the costs of The Benetton Group. With the fluctuations in prices o f raw materials like fabric, threads, buttons, zips etc, the costs also fluctuate.  QUALITY CONTROL SYSTEM - Due to strict quality checks, lot of wastage such as rejection o f apparel due to non-accurate colours, unused bulk orders etc takes place. This wastage adds on to the costs to a great extent.  INFLATION - Inflation and increasing prices of basic amenities used in the factory such as gas, water, electricity and other basic expenses such as transportation costs, labour costs, upgradation o f techno logy which is required at short intervals in this techno savvy world etc contribute to the increase in costs of benetton. Due to shortage of labour and increase in work load, the emplo yees ask for more salaries and incentives which lead to increased costs for the company.  FOREIGN EXCHANGE RATE FLUCTUATIONS - Sales and operating inco me of benetton may be influenced by foreign exchange rate, appreciation of euro, interest rate fluctuations, foreign exchange rate fluctuations in the sale currencies, which in turn causes an impact on the prices o f products sold, the cost of sales, and operating inco me. 9

Foreign currency exchange rate variations against the euro may have a negative effect on sales, operating results, and the international co mpetitiveness o f the production facilities of various business units. Since benetton makes use of hedging in order to manage currency exposure, the strategies adopted may not be sufficient to protect income fro m the negative effects of future fluctuations. It also ho lds assets and liabilities which are sensitive to interest rate variations and are necessary in managing liquidity and financial needs. These assets and liabilities are exposed to interest rate risk, which is, at times, managed through the use of derivative financial instruments. http://sec.edgar-online.co m/benetton -group-spa/20-f-annual-and-transitio n-report-foreignprivate-issuer/2004/06/30/section7.aspx  OTHER FACTOTRS- Other financial expenses such as loans and interest payable, and a few po litical decisio ns o f any increase in tax etc., leads to an automatic increase in the indirect costs of the company. http://www.coursework.info/AS_and_A_Level/Business_Studies/Marketing___Research/ Factors_affecting_Supply_and_Demand_L46386.html

MANUFACTURING Benetton entered India with a 50:50 jo int venture with the DCM Group in the year 1991-92, and now since the past 5 years, it operates as a wholly owned subsidiary of the Benetton Group, Italy. Besides retailing,Benetton India has also started a manufacturing unit in Gurgaon where almost 50% of the garments required in India are manufactured. The remaining products required for the Indian market are outsourced fro m other parts of India like Ludhiana, Delhi, Bangalore, Chennai, and Nepal and Benetton International through contract manufacturing. The designs manufactured are selected fro m the global co llection create by the product design and development team based in Italy. Manufacturing in India has given Benetton many benefits such as low cost labour, lower production costs from suppliers which led to a cut in prices of benetton products by almo st 20%. Also Asian fabrics are cheaper and thus, reduce the cost of apparel manufactured in India. Another benefit is that India made products will attract lower tariffs.

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Therefore, there is an increased emphasis on making India an outsourcing hub for Benetton globally, alo ng with China. Production plans for India were in excess o f 6 millio n units by 2007 which have exceeded now. OPERATIONS Supply Flexibility Benetton's industrial set-up is based on a double supply chain, which is a better measured and more efficient one, based on a logical sequence of activities for minimizing costs. It is a more rapid system with better response capabilities as its an integrated planning system that optimizes in parallel the activities of R&D, product design, production and sales. A balance between the twin tracks of activities makes the supply system flexible and provides the required support for the large expected growth in production from the current level o f around 150 millio n items that Benetton may face soon. The major functions o f the dual supply system like design, planning, coordination and programming are maintained in Italy. It focuses on rapid response to the market, while looking outside Italy for a proper combination o f product quality, efficiency, and the necessary cost control. The Production Planning Office prepares forecasts of market dynamics, and makes it possible to anticipate and decrease production times in order to respond to the needs of the target market in a timely manner. http://investors.benettongroup.com/phoenix.zhtml?c=114079&p=iro lVCOperationsSupplyFlexibility

Integrated Planning: The Dual Supply Chain Industrial Flexibility The production system of Benetton operates in Italy, Eastern Europe, the Mediterranean regio n, and transitio nal Asian markets, such as India and China. During the past few years, most of the investments were allocated towards the managerial independence o f production centers in Croatia, Tunisia, and Hungary, which operate complete

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production cycles (from raw materials to finished product), and on quality control systems to meet the strict benetton Group quality standards. The operational work of the benetton Group relies on the outsourcing o f the labor-intensive phases o f production, such as tailoring, finishing, and ironing, to small and midsize enterprises (SMEs) which is directly controlled by the Italian and foreign production sites. Whereas, the strategic activities and operations that require heavy automations like dyeing, weaving etc, and quality controls are done in-house. http://investors.benettongroup.com/phoenix.zhtml?c=114079&p=iro lVCOperationsIndustrialFlexibility Benetton on the stock market Most of the trading in Benetton ordinary shares during 2009 took place on the Italian Stock Exchange, run by Borsa Italiana S.p.A.; Benetton also quotes and trades its American Depositary Receipts (ADR) in the international OTCQX system, allowing American investors to have constant access to the Group's latest news and info rmation. The Group capitalized at Euro 1.075 billio n at December 31, 2009. Between the end of 2008 and end of 2009, the Benetton stock had an average price of Euro 6.12, reporting a high of Euro 7.55 on October 8 and a low of Euro 4.42 on March 5. An average of approximately 280,000 shares were traded each day. The Group's Investor Relations office ensured that the financial markets were kept constantly and promptly informed over the course of 2009; IR activities were structured in an organized, proactive fashio n that fostered understanding of the business's dynamics and interaction with the markets concerned. The channels of co mmunication with the Group's shareho lders and investors were kept constantly open, through conference calls, video conference calls, face-to-face presentations, participation in roadshows, presentations at broker conferences, company visits, presentation of the collections and in-store visits. Communication activities invo lved not only shareholders and investors on the major financial markets, but also potential new investors with investment profiles matching the Group's structural characteristics and strategic outlook. The Investor Relations website, which publishes details o f Benettons latest share price on the Milan market and the presentations of the Group's quarterly results, was updated in 2009, with 12

particular attention to revising the section on brands in order to communicate transparently the changes in the identity of the Group's brands both in product style and image. The descriptions contained in the Operations, Co mmercial and Communications sections were also updated to reflect the Group's constant policy of renewal in the face of market change. Additio nal services and information are available at www.benettongroup.com/investors. 2005-2009 dividend per share performance (euro)

BENETTON : SWOT ANALYSIS

Strengths:
y

Benetton Group is a world leader in the design, manufacture and marketing of distinctive casual apparel for men, women, and children. Benetton is well known around the world; it has a good image and a good reputation through the 120 countries they are selling in. The Group's commercial network of 7,000 retail outlets around the world is increasingly focused on large floor-space mega stores offering high quality customer services. Benetton is traditionally known for knitwear and casual clothing in a wide array of colors, featuring fashio nable Italian design and projecting a youthful image. Benetton clothes are high quality products usually made of wool. Benetton is active in the sportswear and sports equipment sector with brands such as Prince, Rollerblade, Nordica, Kstle, Killer Loop and Ektelon. Benetton licenses its trademarks for products manufactured and sold by others, including fragrances and cosmetics, watches, sunglasses and other fashion accessories, which complement its product lines. 13

y y

After competing for more than 10 years in the Formula One champio nship, Benetton decided to pull out in March of a sport now dominated by the large car manufacturers. Benetton had entered the costly Formula One sport to promote its clothes in the world market. But it felt the costs of competing in Formula One were no longer justified in terms of the marketing value for the group. Benetton made a net gain of $82.4 millio n that represents a 147 percent rise in first-half net profits. Benetton has its own communication research and development center: Fabrica. It has a pluralistic view on things that is guaranteed by the mix of young people fro m countries with different languages, cultures, and attitudes. They work on projects that include fashio n, interiors, industrial design, and cinema. Colors is a bimo nthly magazine that talks to young people all around the world, and is in 50 countries. They have seven editions published in eight languages, and a Internet site that has won a record number of hits and critical acclaim.

Weaknesses:
y

Because of its controversial way to advertise, Benetton retailers may terminate their contract anytime because they dont want to lose customers. In the United States, Benetton is only retailed by Sears who is not very well know for the quality o f its products, so people associate Benetton with low quality products. In Europe, Benetton products are expensive which gives opportunities to many competitors who provide lower prices for the same quality. Benetton, as its spread all over the world, doesnt have a new geographical market to get in, except the United States.

Opportunities:
y

Benetton does not have a lot of market shares in the United States, so it can improve its position in that market. As Benetton is diversifying, it allows the company to compete on several markets and it makes Benetton less sensitive in regards of the fluctuating econo my.

Threats: 14

The clothing market is getting saturated and the competition is getting tougher and tougher (GAP, Old Navy, Ralph Lauren, Tommy Hillfiger, Calvin Klein, Nautica, Abercro mbie).

COMPETITOR ANALYSIS
y Benetton mainly operates in the apparel sector, which is a highly co mpetitive industry with respect to production, distribution and sales. There is a lot of diversity in co mpetition ranging fro m local, national and global department stores, specialized retailers, independent retailers and manufacturing co mpanies. In India, the major co mpetitors of Benetton include Mango, FCUK, Guess,

Promod, Westside, etc. The company faces a lot of co mpetition internationally as well fro m brands like Gap, H&M etc. The competition in the industry has increased in the last few years, owing to the entry of foreign brands into the Indian market, and thus low cost production plays a key ro le. Apart fro m competition for sales, the co mpanies also compete for significant store locations. The intensity of co mpetition also puts a price pressure onto the operating companies in the industry or could lead to a loss in market share.
y

http://www.slideshare.net/haughtynarcissist/consumer-research-for-united-colors-ofbenetton

MANGO Mango clothing co mpany is a worldwide famous manufacturer and distributor, specializing in women's and men's apparel and accessories. Mango clothing brand MNG was founded in 1984 and has become one of the leaders in retail sales. Mango retail stores are based in big city shopping malls and on shopping streets. Mango (MNG) is a Spanish co mpany which is based in Barcelona but which has expanded to over 92 countries with more than 1000 shops; and with further expansio n planned. http://www.modernights.com/shop/mango/ 15

GUESS Guess? Inc. The Group's principal activities are to design, market, distribute and license lifestyle collections of casual apparel and accessories for men, women and children that reflect the American lifestyle and European fashio n. The Group operates through the fo llowing divisio ns: Retail, European, Who lesale and Licensing. The Group also grants licenses to manufacture and distribute products, which co mplement its apparel lines. Its products include collections of denim and cotton clothing, including jeans, pants, overalls, skirts, dresses, shorts, blouses, shirts, jackets, and knitwear. The co mpany also grants licenses to manufacture and distribute various products, including eyewear, watches, handbags, footwear, kids and infants apparel, leather apparel, swimwear, fragrance, jewelry, and other fashio n accessories. It sells its products through its own stores, a network of who lesale accounts, and the Internet. http://wrightreports.ecnext.com/co ms2/reportdesc_COMPANY_401617105 http://www.linkedin.co m/co mpanies/guess GAP The Gap, Inc is American clothing and accessories retailer based in San Francisco California, and founded in1969. The company has five primary brands: the namesake Gap banner, Banana Republic, Old Navy, Piperlime and Athleta. Gap, Inc. remains the largest specialty apparel retailer in U.S., though it has recently been surpassed by the Spanish-based Inditex Group as the worlds largest apparel retailer. Gap Inc. is one of the worlds largest specialty apparel retailers, with more than 3,100 stores and fiscal 2008 revenues of $14.5 billio n. http://www.gapinc.com/public/About/about.shtml http://en.wikipedia.org/wiki/Gap_(clothing_retailer) ESPRIT Esprit is an international youthful lifestyle brand offering smart, affordable luxury and bringing newness and style to life. The Group offers 12 product lines enco mpassing wo mens wear, mens wear, kids wear, edc youth as well as shoes and accessories through over 640 directly managed

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retail stores and over 12,000 who lesale points-of-sale worldwide, occupying over 817,000 square metres directly managed retail space in more than 40 countries. http://www.esprit.com/index.php?co mmand=Display&navi_id=50

INDIA FASHION ACCESSORIES INDUSTRY

India is world-renowned for exquisitely designed fashio n accessories that are available in a variety of modern and traditional styles. Most models feature a distinct flavor that is unique to the country. The industry constitutes roughly 6,000 enterprises that benefit fro m a plentiful supply of raw materials sourced fro m numerous cities and states nationwide. This key advantage has propelled India to become a leading manufacturing hub for different types of fashio n accessories. This report focuses on the main types of fashio n accessories exported fro m India jewelry, fashio n bags, wallets, head and neckwear, and belts. This India Sourcing Report is part of the Developing Country Sourcing Report series designed to provide buyers with information on new products from export manufacturers in Southeast Asia that specialize in hand-made merchandise. What you'll get In-depth profiles of 18 major suppliers with a comprehensive look at their product and pricing strategy, manufacturing and export capability, verified contact details, and more this information is not available anywhere else 159 full-co lor images that depict popular garment export models, complete with product descriptions, prices, minimum order requirements and delivery times Verified supplier contact details of an additional 9 exporters, including names, e-mails, telephone numbers, websites and key products Supplier information in tabular format to help yo u compare suppliers at a glance Results of the custom-designed supplier survey, which forecasts industry trends for the next 12 mo nths An extensive overview of the industry discussing the main challenges facing suppliers An in-depth examination of the supplier base highlighting key characteristics of the different types of companies Details o f the primary production centers An update of the latest trends in design, R&D, materials and co mponents A review of the key factors that influence the price and quality o f low-end, midrange and highend products Comprehensive pricing tables featuring export price ranges

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INDUSTRY ANALYSIS

MERITS OF FASHION ACCESSORIES BEING OFFERED BY BRANDED RETAILERS Name and reputation Reputed stores comply with ethical regulations 18

Quality assurance

ACCESSORIZE , MISS JO , ALDO ACCESSORIES ARE FEW OF THE EXISTING COMPETITORS

BENETTON BLING MERCHANDIZE MIX CONSISTING OF y y y y y Fashion jewellery (women) Scarves and stoles Bags n wallets Time wear Eye wear

RESEARCH METHODOLOGY REASEARCH DESIGN - Exploratory and analytical research SAMPLING TECHNIQUE - judgmental sampling SAMPLE SIZE - 90 DATA COLLECTION - Primary data : QUESTIONNAIRE

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QUESTIONNAIRE
We are the students of Pearl Academy of Fashion. This survey is being conducted as a part of our curriculum. Your support will be highly appreciated. QI. Are you brand conscious while buying fashion accessories? Yes No

QII.How often do you buy a fashion accessory (fashion jewellery,bags,wallet,eyewear,watch,scarves,stoles)? (please tick the most suitable option) a) Monthly b) Quarterly c) Semi annually/during sale d) Yearly QIII. Which brands/stores do you prefer for shopping for yourself? (Rate on the scale 1st ,2nd,3rd,4th,5th) a) b) c) d) e) Miss Jo Aldo Accessories Accesorize BENETTON (ucb/sisley) Any other(please specify) _______________________

QIV. Rate as per your preference while purchasing. ( Rate on the scale of 1st, 2nd, 3rd) a) b) c) d) e) f) Brand name Functionality Color Quality Price Style

QV.What are the colors that you mostly prefer? ( Rate on the scale of 1st, 2nd, 3rd) a) Pastel shades b) metallic 20

c) Bright d) Black & white QVI. How much would you spend on a single piece of fashion accessory? a) b) c) d) Rs. 200-500 Rs. 501-1000 Rs. 1001-2000 Rs.2001 and above

QVII. Would you like to have an introduction of above mentioned bags under the Benetton group with the brand name as BENETTON BLING? Yes No

QVIII. . Do you like to experiment with your look or style? Yes No

QIX. How would you describe your style? a) Stylish b) Casual c) Classic d) Comfortable e) Smart f) Experimental QX. What is your personal monthly disposable income? a) Rs. 20,000 - 40,000 b) Rs. 41,000 60,000 c) Rs. 61,000 and above QXI. What is your family structure? a) Nuclear family b) Joint family

Q XII. Age 15-19 24-27 QXIII. Occupation Student Employed 21 20-23 28-30

Homemaker Personal details: a) Name: b) Location: c) Hobbies: _______________________ _______________________ _______________________

Questionnaire Analysis
QI. Are you brand conscious while fashion accessories?

brand consciousness
10% yes 35% 55% no not sure

Findings: 55% of the sample unit agreed to be brand conscious, whereas 35 % of them disagreed. Remaining 10% were unsure. QII.How often do you buy a fashion accessory?

buying behaviour
5% 20% 30% 45% monthly quarterly semi annually yearly

Findings: majority of the interviewees buy fashion accessories on monthly basis. Out of the rest, 30% buy on quarterly basis, 20% purchase it semi yearly and the remaining 5% buy accessories yearly. 22

QIII. Which brands/stores do you prefer for shopping for yourself?

brand preference
20% 25% 15% 40% miss jo aldo accessories accessorize benetton (ucb/sisley)

Findings: Accessorize is most preferred amongst all at 40%, followed by Miss Jo with 25%, Benetton with 20% and Aldo accessories with 15%. QIV. Rate as per your preference while purchasing. ( Rate on the scale of 1st, 2nd, 3rd)

purchasing preferences
10% 5% 14% 17% 30% 24% brand name functionality price style color

Findings: While purchasing, 30% of the sample unit give preference to style of an accessory, price comes 2nd at 24 %, 17% give preference to the functionality, 14% prefer the brand name, 10% prefer the color and 5 % give importance to the quality of an accessory. QV.What are the colors that you mostly prefer?

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colors preferred
10% 15% 45% 30% pastel metallic bright black and white

Findings: majority of the sample unit were the youth who chose bright colors, whereas 30 % preferred buying metallic shades. 15% of them opted for pastel shades and 10% preferred black & white. QVI. How much would you spend on accessories?

expenditure on accessories
12% 8% 20% Rs. 200-500 Rs. 500-1000 60% Rs. 1000-2000 Rs. 2000-above

Findings: maximum people are ready to spend between Rs.500-1000. 20% would spend between Rs.200-500 and 12% are ready to spend between Rs.1000-2000. just 8% of them would spend above Rs. 2000 on an accessory.

QIX. How would you describe your style?

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target customer style

stylish 20% 25% 10% 5% 30% 10% casual classic comfortable smart experimental

Findings: majority consisting of girls go in for a stylish look. 25% consider themselves to be smart, 20% feel that they are experimental and 10% describe their casual as comfortable or casual. Just 5% of them claim to be classic.

Demographics Age Group Monthly Income Occupation Family Stucture Gender 15-30years Rs. 61000 and above Students Nuclear female

Findings: the interviewees were mostly ranging between 15-30 years o f age, pre-dominantly females, consisting of youth belo nging to nuclear families with monthly inco me above Rs. 60,000 on an average.

RECOMMENDATIONS
y

PRICING Benetton bling should price the product moderately. fashion jewelery can be priced between 500-1500.other products can be priced between 1000-2500. 25

LOCATION 55% prefer going to branded showrooms hence Benetton bling has immense scope and should open its store in any posh up market area, preferably a mall.

IMPORTANCE OF ADVERTISING trends, televisio n , word of mouth play a very important role in building awaresness hence Benetton should should work more on promotion through ads in magazines and bill boards

BRAND OVER PREFERENCE Benetton bling should emphasis on building good brand image, alo ng with enriching product with value and quality..and vice versa. Also Strong design team should be formulated,as in the end it is the products that strenghten efforts to build brand image

CONCLUSION
Fashio n accessories industry has emerged as on of the most promising industry It has compensated for the declining garments sector Consumers are welco ming this industry Branded accessories have shown a promising response and ho lds a bright future. BENETTON has little scope of growth left in the apparel sector so Benetton bling has immense potential

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References
y y y y y

http://www.eworldtradefair.co m/indian-apparel-industry-a56.html http://www.fashionproducts.com/fashio n-apparel-overview.html#io http://www.business-standard.com/india/news/kit-indias-textileapparel-industry/345936/ http://sec.edgar-online.co m/benetton-group-spa/20-f-annual-and-transitio n-reportforeign-private-issuer/2004/06/30/section7.aspx

http://www.coursework.info/AS_andALevel/BusinessStudies/MarketinResearch/FactorsaffectingSupplyan dDemandL46386.html

y y

http://sec.edgar-online.co m/benetton -group-spa/20-f-annual-and-transitio n-reportforeign-private-issuer/2004/06/30/section7.aspx http://investors.benettongroup.com/phoenix.zhtml?c=114079&p=iro lVCOperationsSupplyFlexibility

http://www.slideshare.net/haughtynarcissist/consumer-research-for-united-colors-ofbenetton 27

y y y y y y

http://wrightreports.ecnext.com/co ms2/reportdesc_COMPANY_401617105 http://www.linkedin.co m/co mpanies/guess http://www.modernights.com/shop/mango/ http://wrightreports.ecnext.com/co ms2/reportdesc_COMPANY_401617105 http://www.linkedin.co m/co mpanies/guess http://www.gapinc.com/public/About/about.shtml

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