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Arvind Brands Competitive Position in the Indian Branded Apparel Market

Presented By:

Abhishek yadav(luck)-03
DFMRM-09/02 To----zebrra

CONTENTS
Introduction Apparel Industry Analysis of Arvinds Brand Portfolio Arvinds Competition Growth Strategies SWOT Analysis PORTERS FIVE FORCES Analysis Branding Strategies Issues Conclusion

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.

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

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 , Raymonds and Pantaloons.

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.

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

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

Arvind Brand Basket


Flying Machine Newport
Launched Age group Price range Difficulties faced Retailer Brand ambassador Tag Line 1980 15-30 500-1000 1993 18-28 300-500

Ruf n Tuf
1997 15-30 299-699

Excalibur
1995 18 & Above 500-1000 ----

Hike in exise to Hike in exise to Distribution 8% 8% hurdle own outlet Abhishek Bachchan Who Needs Phoren? own outlet Saif Ali Khan The Measure of Success Big Bazaar Akshay kumar ----

-------

International Brands
Arrow Licensed Lee Wrangler VF corporation Tommy Hilfiger JV with Murjani group
18 & Above Introduced mens sportswear, mens Jeanswear, junior Jeanswear

Cluett, VF corporation peabody & co., USA


27-35 Four sub brand Classic Premium Urban Sports 4-14 & 17-25 Adjudged the images fashion award most admired Jeanswear brand

Age group specifics

17-25 &25-40 Fashion conscious Love wearing denim on weekend Retail ambience was given importance

Why so many brands ?


Aggressive strategy to verticalize its operations. Vision of largest apparel brands. To attract different segments by heterogeneous mix. Facilitate new brand acceptance

Reduce risk perceived by customers


Improve efficiency of marketing.

Competition

Major Competitors Of Arvind Brands

Madhura Garments
Its 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 Spencers, Tommy Hilfiger, Polo, Ralph Lauren, and several others. It distributes its brands through its own retail chains namely Planet Fashion and Trouser Town.

Brand Portfolio of Madura Garments

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 countrys most prestigious brands Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx, Notting Hill and Zapp! All of Raymonds brands are available at exclusive brand stores, The Raymond Shop retail outlets and multi-brand outlets across India and the Middle East

RAYMONDs BRAND PORTFOLIO

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.

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

Levi Strausss Brand Portfolio

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 Provogues 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" PROVOGUES PRODUCT RANGE INCLUDE: INNERWEAR , T-SHIRT , BOTTOMS , JACKETS & BLAZERS , DENIM , FORMAL SHIRTS , LINEN SHIRTS , CASUAL SHIRTS, FOOTWEAR , SUNGLASSES , FRAGRANCE , CAPS, BAGS , BELTS

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

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

SWOT ANALYSIS
STRENGTHS
Strong portfolio of domestic and international brands

Economies of scale through complete integration Latest manufacturing tools Wide geographical presence

WEAKNESS
Lack of fresh ideas Presence in only big cities Not doing enough to build brand equity

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

PORTERS FIVE FORCES MODEL

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

THREAT OF NEW ENTRANTS

Lucrative market for international brands


Low entry barriers in unorganized retail sector

THREAT OF SUBSTITUTES
Plenty of offerings in premium and super premium category

Small town stores proximity, home delivery, personal attention

Growth in online shopping

BARGAINING POWER OF SUPPLIERS


Increased no of players increases bargaining power of suppliers

Not all companies have complete integration (like Arvind)

BARGAINING POWER OF CUSTOMERS

Low switching costs Low customer loyalty

BRAND HIERARCHY
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
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

POP & POD


Points of Parity Points of Difference
are the attributes or benefits which the brand shares with other brands

are the USPs of a brand, distinct from others

In this case, Arvinds PODs are not well defined. Their offering, target audience and positioning is very similar to its competitors.

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

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 Strategies werent required as they were concentrating on company-owned stores

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.

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)