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An academic report on AND MA-FMG 2012-14 AN ACADEMIC REPORT ON SUBMITTED TO: MA-FMG FACULTY PEARL ACADEMY DELHI. SUBMITTED BY: AVANI JUNEJA MAFMG-1 Avani Juneja 1

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Page 1: avani juneja-academic project

An academic report on ANDMA-FMG2012-14

AN ACADEMIC REPORT ON

SUBMITTED TO:

MA-FMG FACULTY

PEARL ACADEMY

DELHI.

SUBMITTED BY:

AVANI JUNEJA

MAFMG-1

Pearl Academy

2012-2014

Avani Juneja 1

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An academic report on ANDMA-FMG2012-14

CERTIFICATE OF AUTHENTICITY

This is to certify that Avani Juneja, a student of M.A. Fashion Marketing, Pearl Academy of

Fashion, has successfully completed the research project on “AND”. This project is

absolutely genuine and does not indulge in plagiarism of any kind.

The references taken in making this project have been declared at the end of this report.

-Avani Juneja

MA-FMG-1

Pearl Academy

Avani Juneja 2

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ACKNOWLEDGEMENT

I hereby express my gratitude for the valuable guidance provided to me by my

head of the department, Ms. Sharmila Khatre, course leader and coordinator,

Ms. Priya Mary Mathew and Ms. Priyanka Aggarwal, Dr. Sunita Konwar, Ms.

Anuradha Modak and Dr. Ramesh Tahiliani. I would also like to thank the

entire faculty for making me understand various modules and helping me apply

the systems and strategies in the project.

My thanks and appreciations also go to my fellow classmates in developing the

project and people who have willingly helped me out with their abilities.

-Avani Juneja

Avani Juneja 3

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INDEX

1. INTRODUCTION 10

1.1 INTRODUCTION TO ADIL

1.2 INTRODUCTION TO ANITA DONGRE

1.3 INTRODUCTION TO AND

Mission Statement

Vision

2. RESEARCH OBJECTIVES AND TECHNIQUE 12

3.SEGMENTATION, TARGETTING AND POSTIONING 15

3.1 SEGMENTATION

3.2 TARGETING

3.3 POSITIONING

4. AND’s JOURNEY 19

1999

2000-2005

2006-2008

2009-2012

5. CONSUMER BEHAVIOUR 23

5.1 CONSUMER DILO

5.2 CONSUMER BUYING BEHAVIOUR

5.3 CONSUMER VALUE

Consumer value theory

5.4 CUSTOMER VALUE STRATEGIES

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Customer Relationship Management

CRM based strategies:

1. Personal Marketing

2. Win Back Strategy

Strategies for creating loyalty bonds with customers

6. VALUE CHAIN 28

7. PRODUCT DEVELOPMENT 31

Product Development Process

8. SUPPLY CHAIN 33

9. RETAIL MANAGEMENT 33

9.1 RETAIL STORE

9.2 RETAIL FORMAT

9.3 SALE ORGANIZATION

9.4 SALE FUNCTIONS

Training

Selling Techniques

9.5 SERVICE MARKETING

Customer satisfaction related to sale quality SERVQUAL

Reflection

10. MARKETING MANAGEMENT 41

10.1 MARKETING MIX

Product

Price

Place

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Promotion

10.2 INTEGRATED MARKETING COMMUNICATION

Advertisement

Sales Promotion

Social Media

11. BRANDING 53

11.1 BRAND PRISM

Brand Prism for AND

11.2 BRAND EXTENTION

Brand architecture

1. Brand product matrix

Line and category extension

Brand portfolio

Role of AND in brand portfolio

2. Brand hierarchy

BCG matrix

ANSOFF matrix for AND

12. COMPETITIVE ANALYSIS 61

12.1 COMPETITORS

12.2 COMPETITIVE STRATEGIES

13. BUSINESS UNIT STRATEGIC PLANNING 65

13.1 SWOT ANALYSIS

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14. PRODUCT LIFE CYCLE 66

14.1 PRODUCT LIFE CYCYLE FOR AND

15. REFERENCING

16. ANNEXURES

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LIST OF TABLES1. Research methodology

2. Segmentation for AND

3. Consumer buying behavior for AND

4. Consumer value matrix

5. Age group shopping frequency from AND

6. CRM of AND

7. SERVQUAL

8. Weighted score of dimensions

9. Average expectation-perception score

10. AND stores in Delhi

11. Brand Prism for AND

12. Brand product matrix

13. Brand hierarchy for ADIL

14. Competitors for AND

15. AND and competitor analysis

16. Porter’s generic strategy

17. Situation Analysis

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LIST OF FIGURES1. Anita Dongre

2. AND webpage

3. Facebook screenshot

4. Facebook screenshot

5. Competitors

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1. INTRODUCTION

INTRODUCTION TO ADIL

Anita Dongre (1963), a Mumbai-based astute designer is one of the pioneers of the fashion

industry today. From the glitz of the Cannes’ red carpet to the delight of a young girl walking

on the street, Anita’s flavor can be seen almost everywhere. Her “innate flair for style and

design” (www.anitadongre.com 2013) and apt merchandise, voice out clearly the latest

trends. She is the face behind “the power brand” (www.andindia.com 2013) AND Designs

India Limited. Being a designer who integrates fashion and empathy, Dongre’s

comprehension of woman’s grace, sensuality and fancy inspired her to create her own

Fashion house. “The company was incorporated on 14th March 1995 under the name Masque

clothing Private Limited. On January 27, 2001 the name was changed to AND Design India

Private Limited” (ICRA 2012).

ADIL is the brainchild of Anita Dongre who is the creative head

whereas her younger sister Meena Sehra is the director and her

brother Mukesh Sawlani Is the managing Director of the

company. AND is one of India’s most reputable fashion houses

with more than 12 years of experience. Foreseeing a potential

business in branded women’s wear segment, the flagship brand

of the company AND came to life in 1999 in Mumbai, when the

market just got ready for emerging high street brands. Presently,

ADIL owns five premium brands:

Anita Dongre,

Timeless & Interpret,

Grassroot,

AND,

Global Desi.

Avani Juneja 10

1. Anita Dongre http://datastore01.rediff.com/h

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INTRODUCTION TO ANITA DONGRE

Anita Dongre was born in Jaipur on May 17. She has her graduation degree in Fashion

Design from S.N.D.T College Mumbai in the year 1983; initially she had her commerce

degree later she switched to designing field. She entered the world of fashion immediately

after schooling. A passion she always wanted to pursue. She serves as an external mentor to

institutes like S.N.D.T, G.D Somani and NIFT. She liberated women from the straitjacket of

traditional trading and introduced them to pleasures of casual chic. Anita is not a woman of

flamboyant emotionalism. And this reflects, physically and by temperament the clothes that

she has so expertly tailored to the last.

From prêt to couture, traditional to contemporary, classic to avant-garde and desi to global,

her creations bear a mark that is distinctively of her own. Today, the designer has to her

credit six very unique, very individual brands under her umbrella. Her signature labels

include ANITA DONGRE TIMELESS, ANITA DONGRE IITER-PRE’T and

GRASSROOT. Those apart, she is the creative director of AND and GLOBAL DESI as well

as CLAY Wellness, a centre that harmoniously blendes wellness and lifestyle management.

Anita designs clothes for both, bollywood celebrities and royalties. Some of her bollywood

clientele includes Urmila Matondkar, Esha Kopikar, Sameera Reddy and the likes but it does

not stop there. She is also a favorite among her international customers. She has also won

awards internationally for her ingenuity in design and creation. She has also lent her

creativity to movies like My Brother Nikhil & Bas Ek Pal.

Anita Dongre is one Indian designer who truly stands in a league of her own. She is today

one of the most recognized and well-loved designer, creating staple designs for the modern,

go-getter woman. This is just the foundation stone for a global fashion empire that’s in the

making.

INTRODUCTION TO AND

AND is one of India’s most reputable fashion houses with more than 12 years of experience.

Foreseeing a potential business in branded women’s wear segment, the flagship brand of the

company AND came to life in 1999 in Mumbai, when the market just got ready for emerging

high street brands. Since then AND has been coming up with new designs and collection. It

has evolved with the passage of time and has strongly stood in times of such fast changing

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fashion. AND, precisely, is a brand that every young woman can identify with. Its classy and

at the same time very comfortable. Over the years AND has not just established itself as a

fashion brand but also as a socially responsible company. It has joint hands with Shop for

change and works continuously with many artisans to promote their handicraft. The main aim

of AND is to establish itself as a brand that’s socially responsible and at the same time very

fashionable.

Mission Statement

“The company has already stead fast onto its growth. With new stores and counters opening

up almost every month, the company now looks at opening its exclusive outlets in every

Indian city and town. With a reach in every city, the mission will then be to deliver each of

the brands to these destination cities.”

Vision

“The aim of the company is to provide a fashion statement to every Indian woman with a

desire to look good and for tasteful clothing with varied spending powers.”

2. RESEARCH OBJECTIVE AND TECHNIQUE

Exploratory Research was conducted on AND to understand the concepts, strategies,

consumers, growth and CRM in detail and analyze the gaps identified. The aim of the project

is to understand AND as a brand and various models it works on. The following table clearly

illustrates the objectives and research methodology at various stages:

Table 1. RESEARCH METHODOLOGY

Research

Objectives

Research

Design

Data collection

method

Sampling

techniqu

e

Sa

mpl

e

size

Sam

ple

unit

Samp

le

frame

To understand

the

Exploratory Primary source: Random1 30 20- Delhi

1 All customers have expectations from a brand that helps them become consumers.

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expectations

of a customer

from the

brand

Questionnaire

-close ended.

35

To understand

the customer

perception for

AND

Exploratory Primary Source:

Questionnaire

- close ended,

Interview-

unstructured.

Snowbal

l2

30 20-

35

Delhi

To analyze

the brand

awareness

Exploratory Primary source:

Questionnaire

-closed

ended,

interview-

unstructured.

Secondary:

Social Media-

Faceboo

k,

Twitter

Random3 30 18-

40

Delhi,

NCR

To find the

Brand loyalty

Exploratory Primary Source:

Questionnaire

- close ended,

Interview-

unstructured.

Secondary:

Social Media-

Faceboo

k,

Twitter

Quota4 30 20-

35

Delhi

To analyze

various

strategies

adopted by

AND

Descriptive Primary Source:

Interview.

Secondary source:

Journals,

Newspaper

2

for

Inte

rvie

w

2 Only a frequent customer will have a valid perception.

3 Randomly people were chosen because of brand awareness.

4 There are n consumers from different places, so quotas were formed accordingly. 60%: Delhi and NCR and 40%: Tier 1 and 2

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Case studies,

Annual

Reports,

Books.

The data collection methods for various objectives are different depending upon the research

design and nature. The reasons are discussed below:

To understand the expectations of a customer from a brand:

Primary research was conducted through closed ended questionnaires. “A closed-ended

question is a question format that limits respondents with a list of answer choices from which

they must choice to answer the question. Commonly these type of questions are in the form

of multiple choices, either with one answer or with check-all-that-apply, but also can be in

scale format, where respondent should decide to rate the situation in along the scale

continuum, similar to Likert questions.” (Dillman, 2009)

Since a customer’s expectation was to be analyzed, so respondents were expected to answer

on a likert’s scale.

To understand customer perception for AND:

Exploratory research was conducted through primary sources, which included close-ended

questionnaires and unstructured interview. The interviews were unstructured as the shoppers

were reluctant to sit for a formal interview and share their views. Through an unstructured

interview it became easy for me to gather information and talk to the respondents like a

customer and collect information.

To analyze the brand awareness and loyalty:

Data was collected using both primary and secondary sources. Social media was used for

secondary data as customers openly share their views about the brand. The AND page on

Facebook was liked by ------ people, whereas the competitor ZARA’s page was liked by ----

people. Such information helps to analyze the awareness and also derive information about

the loyal customers.

To analyze various strategies adopted by AND:

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Once the brand was explored, then Descriptive research was conducted in order to find out

and interpret more details about the brand and its strategies. AND over the years has adopted

various strategies to grow and sustain in the industry. Structured Interview was conducted

with a store manager and a PR head. Secondary data was collected through journals,

newspapers, books, case studies and annual reports. Since there was not much secondary data

available so in order to validate the inferences structured interviews were conducted.

3. SEGMENTATION, TARGETTING AND POSTIONING

SEGMENTATION

Segmentation basically involves dividing consumers into groups such that members of a

group are as similar to members of that same group but differ as much as possible from

members of other segments. Segmentation can occur using various factors that fit into four

basic categories. Geographic segmentation separates people based on variables such as

region, climate, international/domestic or urban/suburban/rural. Demographic segmentation

uses variables such as age, gender, ethnicity, education, social class, occupation, family status

and income. Psychographic segmentation uses values, attitudes, beliefs and lifestyle to divide

the target market. The final category is behavioral segmentation, which uses factors such as

behavioral patterns, price sensitivity, brand loyalty and benefits sought.”(Lorette, 2013)

The segment of AND can clearly be understood through the following:

“Of butterfly hearts and bold tastes: They race in their cars blaring glam-rock on rainy

afternoons. They go to spas on Sundays and pamper themselves silly. They excel in excel

sheets and have great power over power points. They wear their tunics and jackets with a lot

of attitude. They carry their flowing dresses and crisp shirts as if it were their second skin.

They’re young, they’re whimsical, and they’re uber duper fashionable – they’re none other

than AND regulars. Of sensuous dresses and stud-farm jackets: Oh! The dress from the

cocktail party cannot be repeated at the business conference. And the shirt from the first-rain

brunch can of course not be worn again for the CEO’s dinner. The AND shopper is pretty

much like a self-proclaimed mini celebrity. Matching this starry attitude to perfection is the

assortment of western wear from AND – wicked, sinful and unapologetically sexy.”

(Brandbook, 2013)

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The following table defines the attributes of an AND customer under various kinds of

segmentation:

Table 2. SEGMENTATION FOR AND

Geographic Demographic Psychographic Behavioral

Region: India Age: 25- 40

Gender: Female

Attitude: lively, active,

starry attitude, spend

thrift, ambitious

Price sensitivity:

premium range,

affordable designer

wear

Income group: upper

middle class and high

Belief: self proclaimed

mini celebrity, young

and experimental

Brand loyalty: high,

switchers and loyals

Occupation: working

women, self employed

Lifestyle:

Workingwomen,

visiting spa weekly,

fine dining, party

person.

Benefits sought:

functional benefit-

comfort and ease

“In principle, for any successful business or marketing plan it is imperative to have a market

segmentation strategy in order to understand who exactly the consumer/market is; and the

fashion industry is no exception to this rule. Hence in order to expand her brand’s reach to

various potential target groups, Anita Dongre categorized three kinds of probable consumer

sets. Dongre explains, “We actually started with mid premium and mass segment and are now

moving to offering a premium brand”(Mohapatra, 2012). When AND came up in 1999 its

segment was working women who went abroad for meetings, and came from upper class of

the society but with the evaluation of time the segment of AND has diversified and now it

includes not just working women but women who are experimental and classy.

TARGETING

Targeting refers to reach out to the defined segment for the brand. Says Dongre, “We wanted

to target all the segments and product the best in each. Our labels cater to various tastes and

requirements and internally, we treat each brand as a separate unit when it comes to design,

marketing and strategy.”(Mohapatra, 2012)

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Target market of AND is Metros and mini metros which includes all Tier1 and some Tier 2

cities. Brand is basically focussing on people who are more fashion conscious and are ready

to accept new innovation in design and concepts. The girl/target, who wears or would like to

wear AND is someone who is ambitious, knows and understand fashion loves to adapt &

explore changes.

POSITIONING

AND is a western wear brand that was launched in mid-1999. “Market sensitivity and a keen

understanding of the growing Indian women’s need for comfortable, stylish, branded and

affordable clothing was the primary factor in positioning the brand.”

(www.lifestyle.indianetzone.com, 2001)5. The positioning of AND hasn’t changed over the

years. It still positions itself as a brand that offers fashionable clothing at affordable price. It

positions itself as high on design and innovation and provides always something new to its

consumer.

“Today one of India’s most preferred high street brands in the western wear category, AND,

caters to the today’s woman of substance who seeks stylish and fashionable outfits at an

affordable price. From corporate wear to semi-formal evenings or a causal hang-out with

friends, one can wear AND to add an edge to your personality.” (www.Fashionunited.com,

2012)

“At the heart of AND’s success at scaling up is a model that takes a leaf out of famed retailer

Zara’s book: Products positioned between designer wear that costs the moon, and mass

market stuff that is cheap, but commonplace. This space is defined as the ‘bridge to luxury’”

(Bhagnani, 2012). Anita Dongre once said in her interview, that there is mass and luxury.

Between the two is the bridge to luxury where the aspirational customers lie before they

graduate to the level of luxury. This bridge is where the AND consumer lies and thus the

brand positions itself as an aspirational brand. Worldwide, at one end of the spectrum, there

are marquee brands such as Louis Vuitton, Armani, Bulgari, Gucci and Burberry that are

synonymous with luxury, and at the other end there are unbranded, cheap, mass-marketed

clothes. In the middle is the bridge-to-luxury, which a customer crosses, before graduating to

5 http://lifestyle.indianetzone.com/fashion/1/anita_dongre.htm

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high-end luxury. On this bridge stand brands such as, Zara AND and Armani Exchange.

These brands become relevant to upwardly mobile customers as they move up the value

chain. The Indian market is structured in much the same way. At the top end, there are high-

end fashion designers with global brands, while at the bottom end there are thousands of

players catering to the mass market. What makes the Indian market different is the dearth of

brands in the bridge-to-luxury segment. (Bhagnani, 2012). Thus the brand has judiciously

positioned itself as a brand that caters to the aspirations of the consumers.

According to the FUTURE GROUP financial report, the company’s operating income for the

financial year 2012 was Rs. 118.8 crore which makes the company’s scale relatively modest.

The company website boasts of recorded growth due to the expansion of standalone stores

and SIS format. AND’s Global Desi have been positioned in the market as the brands, which

offer “quality with affordability”, which is also their USP (unique selling proposition).

“Explaining the fashion industry structure in apparel design segment, V Rajesh, retail subject

matter expert says that there are three levels the top end, that have players like Rohit Bal who

caters to specific targets and extremely niche category, at the next level there are the top end

designers who have their own line of clothing and boutiques like Ritu Beri, and at the bottom

there are those who are from the merchandising background and design for major retail

outlets like Shoppers Stop and Lifestyle. Dongre fits all the three.” (Mohapatra, 2012)

AND give the contemporary shopper a delightful choice of fashion clothing. For women,

there are a variety of ladylike tunics, skirts and tops, in addition to tomboyish jackets and no-

nonsense trousers. For the alpha male, there are crisp shirts, smart tees, perfectly tailored

jackets, stylish trousers, and denims on display.”

According to the survey conducted AND consumers are generally aged between 20- 35 years.

Since the product width is large so an AND has a vast array of customers including students,

housewives, professionals etc. This is also due to the merchandise mix that AND is able to

tap the needs of varied tastes and preferences. The merchandise is chic and classy. As told by

Niti Juneja (a housewife, 38 years and AND loyal) in a personal interaction, “AND is an

extremely comfortable brand. One may find a formal dress and a casual tunic under the same

roof.”

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AND is positioning itself as brand who offers fashionable clothing at affordable price. It

positions itself as high on design and innovation and provides always something new to its

consumer.

4. AND’s JOURNEY

1999

AND Designs India Limited (“ADIL” or the “Company”) is in the business of designing,

manufacturing and retailing apparel. The Company was incorporated on 14th March, 1995

under the name Masque Clothing Private Limited under the Companies Act, 1956. On 27th

January 2001 the name of the Company was changed to AND Design India Private Limited.

ADIL initially focused on the manufacture and supply of unbranded apparel to retail stores.

In 1999 the Company started its first independent retail store at Crossroads (India’s first

Mall) and also launched its prêt line “AND”. This brought both the Company and Anita

Dongre into the premier league of the domestic branded clothing market for women. AND

had two line:

2000-2005

Avani Juneja 19

AND

AND

Mumbai- crossroad,

linking road

Delhi- south extn 1

AND EAST(fusion and

ethnic wear)

shopper stop pantaloon pyramid

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In 2000, Anita showcased a collection at the CPD Dusseldorf garment fair in Germany where

the signature label “Anita Dongre” was launched. With positive understanding of an

international look, it was appropriate for her to launch it at an international forum- IGEDO in

august 2000. AND SPORTS was also launched during this year.

The AND store’s USP now was that it stored size 18 to size 8 with well cut, affordable,

quality garments. So it made shopping convenient for customers.

In 2001, according to midday (Thursday, April 9) AND was launches as an affordable work

wear line for women. “AND was launced keeping in mind the increasing number of women

entering the work force, going out for assignments abroad, and basically wanting to dress

differently from the usual saree or salwaar -kameez.” (Dongre, 2001)

In 2005, the spring summer collection, became casual, and HOLIDAY WEAR was

introduced with casual, printed, lycra, linen outfits.

2006-2008

CLAY, a health and fitness centre came up in the year 2006.

In year 2007 the ADIL entered into fitness industry under the brand name „CLAY‟. ADIL

has a fitness centre at Bandra (West), Mumbai under the brand name „CLAY‟ where it offers

various fitness programme such as yoga, aerobics, weight management. The company has

now demerged the wellness division under „CLAY‟ brand in to a new company to focus on

apparel segment. ADIL was initially promoted by Mrs. Anita Dongre, Mr. Mukesh Sawlani

and Mrs. Meena Sehra. In FY 2009, the Future group picked up an equity stake in the

company and currently holds 22.86% in ADIL.

2008, Anita dongre collaborated with Birla cellulose, to make organic ensembles for Indian

woman pocket friendly.

2009-2012

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2009 was marked with organic green summer collection. A lot of publicity was done, and a

lot of newspapers published articles for them.

2010, the investment in AND and Global Desi stores in Chennai is close to Rs 80 lakh,

including stocks. With this launch, the designer has 20 AND stores across India.

AND also launched a no-sweat line . New autumn-winter collection made from 100% ‘shop

for change fair trade’ certified cotton was also launched.

During this time, the flagship store in Mumbai came up.

In 2011, AND has mastered the business so well, that it has an opening every other month.

As a part of corporate branding it tied up with a café brand Schokolaade with Mehul Bhuta in

the flagship store in Mumbai.

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Table 3. Consumer buying behavior for AND

An academic report on ANDMA-FMG2012-14

5000 square feet store in Mumbai for bridal wear was inaugurated. The line dwells on

Rajasthani- inspired handwork but the men’s wear is simple and made to order.

In 2012, AND MAN was launched.

November, 2012, 2nd limited edition of AND dresses was launched, pricing 1999 INR and

above.

5. CONSUMER BEHAVIOUR

CONSUMER DILO

The Day In Life Of an AND customer is depicted through the pictures in Annexures. An

AND consumer is someone who has high sense of fashion and is experimental. She would be

an aspirational consumer and would dine at Radisson Blue, go for parties, visit Starbucks

frequently, have a Blackberry smartphone, a car by like Civic/ City by Honda, would be a

working women so attend a lot of meetings and corporate events.

CONSUMER BUYING BEHAVIOUR

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Source: Philip Kotler

CONSUMER VALUE

Consumer value theory A customer value matrix is used to identify the customer values and perceptions on the basis of

various attributes. The following matrix is to find the gap between a customer’s expectation and

perception.

Table 4. Consumer value Matrix

CVF-1 CVF-2 CVF-3 CVF-4 CVF-5

Environmental Cleanliness of Visual Sequence of Decoration Employees

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Five stage model of consumer buying

behaviour

problem reconition

information search

evalutaion of alternatives

purchase decision

post purchase behaviour

Consumer buying behaviour for AND

need for apparel by a working woman

information through word of

mouth(personal), commercial or

experiential

evalutaion of other brand products

consideration of all risks (functional, social,

financial, et al) and final purchase

if satisfied, the customer then revisits the store and publicizes through word of

mouth

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the store merchandising merchandise neat in

appearance

Sensory Lighting Fragrance Music Sense of security Noise made

by the other

consumers

Interpersonal Behavior of

staff

Response of

Sales executives

Kind of

customers

Interaction with

the salesmen

Willingness

of the

employees to

help the

customers

Deliverance After sale

services

Exchange

policies

Time taken

while billing

Quality of the

product

Fulfilling the

demand of

the consumer

Procedural Customers

feel safe in

doing

transactions

Formal records

are maintained

by the brand

Return

policies are

flexible

After sale

inconveniences

are sought by the

sales staff

Defected

objects are

replaced

Informational Information

regarding

exchange told

in advance.

Information

regarding the

product

mentioned.

Products are

displayed

according to

its size

Fresh arrivals

separately placed

Discounted

products

placed

separately

Financial Financial

records are

maintained

Financial dossier

of 2010

mentioned on the

website

Credit: Ms. Priyanka

The above Consumer Value Matrix considers 7 attributes, which describe the various factors

related, to them. These factors help in analyzing how effective is the experience of shopping

in the store is in terms of the value a consumer draws from it.

CUSTOMER VALUE STRATEGIES

Customer Relationship Management

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“Customer relationship management (CRM) is a model for managing a company’s

interactions with current and future customers. It involves using technology to organize,

automate, and synchronize Sales, Marketing, Customer service, and technical

support.”(Shaw, 1991)

AND has a strong CRM system where in the purchase made by each customer is recorded

along with the name and personal details. The sales are recorded and to ensure that the loyal

customers are rewarded, points are issued which can be claimed in money terms to avail

discounts. CRM also helps the brand to differentiate between the kinds of customers and

form strategies accordingly. The following table tells in detail how AND utilizes the CRM to

get the mentioned 5 attributes with the help of research and survey and CRM technology.

Table 6. CRM of AND

(What CRM comprises of)

Acquiring the

right customer

Crafting the

right value

proposition

Instituting the

best

processes

Motivating

employees

Learn to

retain

customers

AND achieves these when-

Identifies the

most

valuable

customers,

Analyses the

share of

customer’s

wallet for

AND

products.

Study the

products

needed

today by

AND

customers

Survey

competitor

s offerings

Spot gaps

Research

best way

to deliver

service

and

products,

technolog

ies,

needed in

AND

Understand

tools

employees

need to

foster

customer

relationship

in AND

HR system

to be

instituted to

boost AND

employees

Learn

why

AND

customers

defect

and how

to win

them

back

Analyze

competito

r’s

strategies

Senior

managem

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ent

monitors

customer

defection

s

Role of CRM in AND

Analyze

customer

cost data to

identify

current and

future high

value

customers

Capture

relevant

products

and service

behavior

data

Create new

distribution

channel

Develop

pricing

strategy

Process

transition

s faster

Provide

better

informati

on to

front line

Manage

logistics

better

Align

incentives

Develop

knowledge

managemen

t systems

Track

customers

Track

customer

service

satisfactio

n level

CRM based strategies:

1. Personal Marketing AND personnel can create strong bonds with customers by individualizing and personalizing

relationships. By this, the customer may turn into a client as a customer is nameless to the

company but a client cannot be nameless and is treated individually, unlike customers being

treated as a part of the mass.

2. Win Back Strategy During a period of time, some customers may become inactive or drop out. The CRM helps

to identify such drop outs who could be won back. The key is to analyse the cause of

customer defection through interview and lost customer survey and win strong potential

customers back.

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Strategies for creating loyalty bonds with customers

The following kind of bonds can be established by AND to strengthen the relationship and

customer retention (Kotler, 2011):

1. Reward based bondCustomers who are polygamous loyals should be rewarded financially in order to strengthen

their preference over AND.

2. Social bondsSocial bonds should be created between the customer and the sales person. If the sales person

is quick in identifying and interacting with the customer then it may increase the chances of

the customer returning thinking that her preferences are understood in the store and she is

known to them.

3. Customization bondsThis kind of bond is created by providing specialized service to the customer, in terms of

alterations, having a record of the customer’s past purchases and suggesting related

merchandise to her.

4. Structural bondsGetting the customer in close link with the company can create structure bond. AND helpline

number should be made available for the customers and also short messages should be sent

frequently informing the customers about the arrival of new merchandise, sales, style tips.

6. VALUE CHAIN

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Source: www.12manage.com

The above diagram explains the value chain and its components in detail. We shall now

discuss AND’s value chain in detail:

Primary Activities:

Inbound Logistics- The brand has number of manufacturers in India. AND is completely a

marketing and retailing brand thus AND does not have any manufacturing unit. The brand

outsources the fabrics in high volumes. Fabrics are imported mainly from China and various

mills of India. Various embroideries and handicrafts are sourced from NOGs as mentioned

above.6

Operations- Samples are made by the in house designers. They are then validated by a strong

team of merchandisers and panel and selected. The shortlisted samples are further sent to the

factories. There exist various quality control checks on every level of manufacturing process.

Outbound Logistics- The final merchandise/products are sent to the only distribution center

of the brand which is located in Mumbai. From Mumbai the goods are dispatched to various

selling points throughout India.

6 NGOs: pg.

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Marketing and sales- The marketing and selling starts now. The stores then sell the products.

Marketing, now, plays the role of promoting the merchandise and creating awareness about

the brand and its collection.

Services- The last is the service, which indeed is the most important. After sale services are

provided and during sale services also. The merchandise is altered according to the

customer’s wish and will during the purchase time. The merchandise is even delivered in case

of emergency. If the customer is dissatisfied she/he may even exchange the products. And if

there arises some production fault then the product may get replaced too.

Support Activities:

Firm infrastructure-

Human Resource Management- The HR management is quiet brilliant at AND. There is not

only a designing team but an array of different teams to handle her business efficiently.

Below is the AND team, right from designing to reaching the store.

“AND follows functional based organizational structure in which departments are categorized

on the basis of their functions. Above given is example of operational department in which

head merchandiser decides on merchandise for AND for all across the country, followed by

operational manager who is responsible to get the merchandise and manage stores. Regional

Manager looks over stores in their region and decides on merchandise needed as per the

target market and sales made by stores. Store manager thus looks over the store and

communicate to regional manager about sales and merchandise and requirement from people.

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ANITA DONGRE- Creative Director

Merchandiser

Operational Manager

Regional Manager

Assistant Operational Manager(north)

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Sales staff at the ground level under supervision of store manager is in direct contact with

customer and sell the merchandise that is planned by merchandiser at the top management.

Thus this allows smooth functioning of brand and leads to proper communication to fill in

loops holes by segregating different responsibilities and roles.”(Kapoor, 2012)

“AND Designs has followed Zara’s strategy of showcasing fresh designs and multiple

collections throughout the year. The company has eight or nine designers for AND and

Global Desi, and they turn out new designs every month. Every week, there are brand meets

for each of the four brands, during which samples are displayed in front of Dongre and her

merchandisers. They select the designs they like and check their commercially viability. Only

then does a design go into production. Nine merchandisers employed by AND study trends,

purchasing power and willingness of customers to spend on certain clothes, and styles that

work in Tier II cities as opposed to metros. They travel every month to various AND and

Global Desi outlets in different cities to gather customer data. They speak to the staff at these

stores about what customers like, and what they are looking for. For instance, a girl in

Lucknow will be willing to spend Rs 2,000 on a pair of jeans, but Rs 1,000 for a top. The

merchandisers also found out that coloured denims, currently in vogue, had skipped the

design teams’ notice, and were not available in any of the AND stores. The data provides an

insight into what designs will work and what will not, and helps in taking decisions on the

quantity of each design that should be stocked.” (Bhagnani, 2012)

6. PRODUCT DEVELOPMENT

Product Development Process

The product development process at AND is represented below:

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AND works on two main season collections:

1. Spring-Summer

2. Autumn-Winter

As told by Mr. Abhishek, the designing starts six months in advance and the production and

plan execution starts three months in advance. The Product Line is as follows:

1. Classic,

2. Contemporary,

3. Fashion, and

4. FAD.

“The collection for each season is very carefully designed by a strong in house design team

with the constant inputs from merchandisers, sampling units and in house distribution facility

which makes enables AND to come up with new collection every month. The planning team

plans the season and forwards the option plan to the design team which then starts working

on the same and creates more designs leaving a margin for rejections.” (Kapoor, 2012)

“The option plan suggests the ratio of merchandise mix for each season but the Merchandise

mix at each store may vary depending upon the preferences of the costumers. AND sincerely

follows ZARA model of fast fashion and tries to launch new collection every alternate week.

So the AND collection is revived at least 6 to 7 times each season and the slow selling

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designing

sampling

selection

analysis

final production

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products revolve around various stores to give the collection a fuller look. The ratio for the

ideal merchandise mix is as follows:

a) Basics are booked in a deeper ratio for each store based on the kind of traffic it

attracts. Replenishments are conducted for basics all through the season.

Generally as observed the basics are nearly 50-60%.

b) Classic are second followed after Basics in depth. Classics are about 35-40%.

c) Fashion & Fad are customized booked for individual store based on the traffic &

level of acceptance of fashion in particular city. Most of the stores refrain from

keeping such merchandise because it’s a really slow selling.

Thus the new product development proceeds with an array of designers working on various

lines & collections for the season (keeping in mind the latest trends, fashion forecasts &

fads). After the designing are creation of the garment, commercial viability of the designs is

judged by a team of buyers who choose the garments keeping in mind the brand identity and

philosophy.” (Garg, 2012)

To understand the product strategy of AND in detail the following questions were asked:

1. Who is the brand aimed at?

2. What benefit do you expect?

3. How do you position the brand in the market?

4. What differential advantage will the merchandise offer over the competitors?

5. What non-tangibles do you offer?

7. SUPPLY CHAIN

Every brand has to choose the most suitable channel of distribution for the products. AND

follows the most common distribution channel i.e. the Two Level distribution channel. It is

an indirect marketing channel.

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The brand has number of manufacturers in India. AND is completely a marketing and

retailing brand thus AND does not have any manufacturing unit. The brand outsources the

fabrics in high volumes and then samples are made by the in house designers and further are

sent to these factories. There exist various quality control checks on every level of

manufacturing process. Fabrics are imported mainly from China and various mills of India.

These products are sent to the only distribution centre of the brand that is located in Mumbai.

From here, the goods are sent to all the retail outlets throughout the India.

8. RETAIL MANAGEMENT

RETAIL STORE

The retail is the last channel of the distribution chain, where the distribution channel is the set

of businesses through which the goods move from the point of production to sale. AND today

retails at 121 standalone stores and 127 shop-in-shops at chains such as Shoppers Stop and

Lifestyle. (Seth, 2013)

AND also has an e-store. A customer may buy anything she wants to, in case she doesn’t

have the time to go to the store herself. AND targets working women, who of course may

have time constraints and thus this e-store is of immense ease to the customers. One remains

updated about the brand and merchandise through the website.

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An academic report on ANDMA-FMG2012-14

RETAIL FORMAT

AND has the speciality store format, where small stores, which specialize in a specific range

of, merchandise and related items. Most stores have an extensive depth of stock in the items

that they specialize in and provide high levels of service and expertise. AND is a speciality

store in the way that it specializes in women’s western wear and has accessories (related

items).

The AND store layout is very systematic. It has various kinds of faceouts, wall units and

gondolas. In store visuals play a very important role, easels stands, standees and screen

scrollers. They also communicate cause driven information collection with handbags of the

garment The merchandise is arranged according to the product line. The dresses at one place,

tunics at one and so on. The stores are designed in a manner that it makes shopping extremely

convenient for the customers. The brand targets aspirational working women, so the store

plan is made in accordance.

SALE ORGANIZATION

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“The one key reason why designers in India haven’t been able to scale up is because they

lack a CEO, or business head, who can manage their creativity and make it commercially

viable,” says Arun Gupta, president, Future Ventures, which owns a 22.86 percent stake in

AND Designs. There might be a lot of other designers who’re more creative than Dongre, but

not everyone has the potent combination of creativity and the right commercial perspective”

(Bhagnani, 2012).

AND follows functional based organizational structure in which departments are categorized

on the basis of their functions. Above given is example of operational department in which

head merchandiser decides on merchandise for AND for all across the country, followed by

operational manager who is responsible to get the merchandise and manage stores. Regional

Manager looks over stores in their region and decides on merchandise needed as per the

target market and sales made by stores. Store manager thus looks over the store and

communicate to regional manager about sales and merchandise and requirement from people.

Sales staff at the ground level under supervision of store manager is in direct contact with

customer and sell the merchandise that is planned by merchandiser at the top management.

Thus this allows smooth functioning of brand and leads to proper communication to fill in

loops holes by segregating different responsibilities and roles. The company had a very

strong design team that comprises of 15 designers with separate teams for major brands like

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Merchandiser (Tejaswer Deroukhar)

Opertional Manager (Sushil Verma)

Regional Manager (Renu Seth)

Assistant Operational Manager North (Anjali Roy)

Store Manager & Sales Staff

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AND. Designing is the key strength and Dongre herself is involved in the process. This is

also the company’s key promoter.

SALE FUNCTIONS

Training

“According to a survey conducted by Pearl students, proper training should be imparted to

the sales people. As per their survey, following were the finding in terms of sales person,

Product knowledge, communication skills, consumer handling skills of a sales person at AND

is 32% good, 6% said excellent but a major percent of people believed that it was fair and

poor.

The overall experience satisfied 72% sample, which means that the experience of shopping at

AND is quiet pleasing.

58% of sample finds position and visibility of the trial rooms is to be good followed by 30%

to be fair and then 7% to be excellent with rest 5% to be poor.

55% of sample finds assistance for extra merchandise during the trails to be good followed by

32% to be fair and then 9% to be excellent with rest 4% to be poor.

Majority of sample size agree to that fact that waiting time at billing area is effectively

managed at AND which is 57% followed by uncertain with 23% then disagree with 13% and

rest 5% strongly agree. Average waiting time at the billing counter is 4.6 minutes.

Majority of sample size disagrees to that fact that feedback of the consumer is asked for while

leaving the store, which is 33%, followed by uncertain with 30% then agree with 27% and

rest 7% strongly disagree.” (Kapoor, 2012)

Selling Techniques

The sale process begins with entering the store, and checking the handbags with the guard

and keeping them with him for ease in shopping. A token is handed over, which has a

number, and the same number is tied on the bags too. While walking in the store, generally a

sales person comes up with the question, “how may I help you?” and there begins the hunting

for required things. In case of AND being an apparel brand, the sales person helps with the

sizes and colours and related items. If one wishes to take trial then she is assisted to the trial

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room. The sales person is available for help at one voice from the trial room and gets more

options depending upon the customer’s taste and preference. Once the customer is sorted with

the trial and decides what to buy, then she is assisted to the billing counter. The bill is

generated and if there are any alterations required then those are done without any extra

charge. The shopping bag with the bill is handed over to the customer, and its cross-checked

with the guard during the exit. One collects the remaining shopping bags and there ends the

sales process in AND.

AND has a really strong sales system. The employees are given regular training. There

system of working is also quite interesting. They have set targets and benchmarks for the

sales staff, so on observation by the store manager, bonus or credits are added to the

employee’s account. These credits in turn add upto a sales person’s growth in the store.

PARETO Principle:

It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients." The distribution is claimed to appear in several different aspects relevant to entrepreneurs and business managers. For example:

80% of your profits come from 20% of your customers 80% of your complaints come from 20% of your customers 80% of your profits come from 20% of the time you spend 80% of your sales come from 20% of your products 80% of your sales are made by 20% of your sales staff.Therefore, AND has an easy access to dramatic improvements in profitability by focusing on the most effective areas and eliminating, ignoring, automating, delegating or retraining the rest, as appropriate.

SERVICE MARKETING

Customer satisfaction related to sale quality SERVQUAL

Table 7. SERVQUAL

Dimension StatementExpectation

Score

Perception

ScoreGap Score

Average for

Dimension

Tangibles 1 200 108 -92 -3.066666667

2 198 116 -82 -2.733333333

3 172 120 -52 -1.733333333

4 117 94 -23 -0.766666667

Reliability 5 108 139 31 1.033333333

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6 150 118 -32 -1.066666667

7 189 108 -81 -2.7

8 201 114 -87 -2.9

9 200 119 -81 -2.7

Responsiveness 10 178 121 -57 -1.9

11 199 139 -60 -2

12 187 124 -63 -2.1

13 167 138 -29 -0.966666667

Assurance 14 184 131 -53 -1.766666667

15 149 139 -10 -0.333333333

16 176 86 -90 -3

17 156 98 -58 -1.933333333

Empathy 18 98 83 -15 -0.5

19 160 118 -42 -1.4

20 177 94 -83 -2.766666667

21 156 97 -59 -1.966666667

22 143 103 -40 -1.333333333

Unweighted Average SERVQUAL score: -38.6

Table 8. weighted score for dimensions

Sum of

average

score

Weights Weighted

score

Tangibles -8.3 20 -166

Reliability -8.33 20 -166.6

Responsiveness -6.966 20 -139.32

Assurance -7.033 20 -140.66

Empathy -7.966 20 -159.32

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Tangibles and reliability have the lowest rating therefore it is the dimension where training

should be emphasized the most. A focus should also be placed on Responsiveness, assurance

and empathy because of its negative rating. This data clearly proves that the brand seriously

needs to concentrate upon its training as the perception score is low for all the dimensions.

This research was conducted in the DLF Mall, Saket, outside the AND showroom. Saket

being a prime location in Delhi, attracts a lot of customers and if the customer is dissatisfied

with the sales quality then the brand would definitely loose on a huge percentage of potential

customers, who other wise could become loyal customers.

Word of mouth, personal needs and past experiences lead a customer to expect from a brand

and then on the basis of their experience make a perception of it. During this process several

gaps rise, for instance:

Gap between expected service and perceived service: this gap is created due to another gap

present in the expectation of a customer and how it is managed during the perception time.

When in AND (Saket), “the clothes look good, but the way they are placed, and the small size

of the store makes me feel claustrophobic. It seems as if the entire store will drop down on

the head”, says Mrs. Kaushik.

Reflection

AND on the customer perception-expectation chart:

Tangibles:

Table 9. Average expectation-perception

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score

Dimensions Expectation Perception

Tangibles 171.75 109.5

Reliability 169.6 119.6

Responsiveness 182.75 130.5

Assurance 166.25 113.5

Empathy 146.8 99

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perception

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expectation

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According to the above perceptual mapping, empathy lies in the zone of “needs

improvement” where as all the other dimensions lay in the positive zone of relative strength.

Proper training can seriously bring about a marked difference in the sales quality of the

company, and thus increase the sales.

9. MARKETING MANAGEMENT

MARKETING MIX

ProductAND has followed ZARA’s strategy of showcasing fresh designs and multiple collection

throughout the year. The company, according to Forbes India, has 8-9 designers who turn out

new designs every month. Every week there is a brand meet of ADIL where different designs

and samples are showcased in front of Anita Dongre and the merchandisers.

The designs are then selected and checked for their commercial viability and then they go

into production. 9 merchandisers are employed by AND to study trends, purchasing power

and willingness of customers to spend n certain clothes and styles that work in tier 2 cities as

opposed to the metro cities. They travel every month to various outlets to gather the customer

data and their requirements.

These merchandisers interact with the staff and discover about customer preferences and

tastes. The following case highlights this strategy in detail,“A girl in Lucknow will be willing

to spend Rs 2,000 on a pair of jeans, but Rs 1,000 for a top. The merchandisers also found out

that coloured denims, currently in vogue, had skipped the design teams’ notice, and were not

available in any of the AND stores. The data provides an insight into what designs will work

and what will not, and helps in taking decisions on the quantity of each design that should be

stocked.”

PriceThe retail experts think that the mass segment today who is fashion conscious and aware

cannot afford apparel showcased in the lakme fashion week or the wills lifestyle fashion

week. So, there is a huge potential in this mass market where there are aspirants of designer

apparel. Thus, if they get a chance of getting apparel by the same designer at a much

affordable price, it is a good proposition for both the consumer and the marketer. In addition,

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according to Brand expert and columnist Santosh Desai, “Indians generally have a sense of

value for money, they look at the price point and from that perspective there are many

different designers to look at in today’s market. The Indians look at affordable apparels that

have got the signature tags of these designers. Therefore we see a balance being created

between the seriousness of the designers and the price tag that comes with their signature

apparels,” he adds.

“In the case of Anita Dongre, she has originality and distinguished design that attracts the

market, also she has many brands running under one umbrella and a more than one line of

apparel,” Desai sums up.” (Mohapatra, 2012) “The budding apparel entrepreneur has

consciously kept the prices of her popular brand AND between Rs 1500 – 4000. thus the

value for money proposition and a designer tag not only suit the pocket of her various target

groups but also fill the aspirational need of the consumer.”(Desai, 2012)

The pricing strategy of AND is very simple. It follows COST-PLUS MODEL of pricing its

goods. The firm calculates the cost of producing the product and adds on a percentage (profit)

to that price to give the selling price.

But this method although simple has two flaws:

It takes no account of demand,

There is no way of determining if potential customers will purchase the product at the

calculated price.

AND takes into consideration both variable and fixed costs and adds a percentage as markup.

PlaceIt’s the method you use to get your product or service through various distribution channels

to the ultimate purchaser or end-user – in other words, how and where the consumer buys

your product or service. It is a vitally important activity that focuses on how to reach your

target market and the:

Location of business

Location of target market

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How to reach target market

Warehousing of stock

Transportation of stock

AND operates as shop in shop format through MBOs like shopper stop, Kapsons, etc. Its also

has various standalone stores in Delhi, Mumbai, Kolkata, Pune, Chandigarh and many other

cities. “While established designers such as Komal Sood and Dev R Nil cater even to those

not so conversant with designer labels, Anita Dongre’s stand-alone venture, AND, seems to

have found its own space in the hearts and mind of the Kolkatan. Dongre, a Mumbai-based

designer, has created a special line for her Kolkata customers: “AND was retailing for

Pantaloons much before we opened our first stand-alone store at Mani Square”. The response

was so encouraging that we “decided to open an exclusive store”, says Dongre.” (Sen, 2008)

AND EBOs in Delhi:

Table 10. Stores in Delhi

Ground Floor, DLF Place,

Saket,

New Delhi.

Tel: 011 32325452

First Floor,

Pacific Mall,

Near Subash Garden Metro,

Rajouri,

New Delhi

Second Floor, Ambience Mall,

Nelson Mandela Road,

Near DLF Emporio Mall,

Vasant Kunj, Delhi 110070.

Tel: 011 32990367

Main Market,

Kamla Nagar,

New Delhi.

AND has its stores around the nation now. All the major shopping areas in Delhi and other

places AND has already targeted. It looks forward to opening of more stores across the nation

in all tier1 and tier 2 cities where the purchasing power actually lay. Not only is the actual

space covered, but AND has its presence trough SIS formats in various MBOs. It also retails

through the company website and quiet often is seen on sale on e-commerce websites

including fashionandyou.com, 99labels, etc.

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The distribution channel of AND is also strategized accordingly. The company has also

gained in raw material procurement efficiency with increasing size. In H1, FY 2013 the

depreciating rupee put pressure on margins as fabric for the “AND” brand is largely imported

from China. The company to dedicated factories located in Mumbai and Jaipur and

Ahmedabad outsources the stitching and embroidery activity. Typically the western wear

brand “AND” is outsourced in Mumbai and from Mumbai the merchandise is packed and

dispatched to various other cities in India.

Promotion“While everyone knows her as a fashion biggie, many follow her on Facebook as well. With

about 14000 fans she has certainly kept her audience engaging by giving them tit bits of her

fashion, photos and videos before anyone else. Not a lot of engagement in terms of any

freebies or giveaways, but certainly keeps her fans engaged by letting them know what’s

happening around the brand. Besides that, they certainly need to talk a lot more besides just

showcasing their brand.”

The two brands account to up to 96% of the company’s gross sales, with the balance coming

in from the couture segment. The company did not involve into much promotion until FY

2011, but lately they have increased their spending with the increase in their sales and

revenue.

MARKET DOMINANCE STRATEGY

Typically there are four types of market dominance strategies that a marketer will consider: There are market leader, market challenger, market follower, and market nicher.

AND is a market challenger based on the following characteristics: Assess the strength of the target competitor: AND follows the ZARA model religiously. Choose only one target at a time: AND’s present target is to open more stores in tier 1 and

tier 2 cities. Launch the attack on as narrow a front as possible. Whereas a defender must defend all

their borders, an attacker has the advantage of being able to concentrate their forces at one place: AND has introduced fair trade cotton apparel and has also segmented its target group definitively. AND tries to attack as silently as possible. Since it has defined its segment group so loudly, so most of the competitors don’t feel it to be an attacker, whereas it is.

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Discounting or price-cutting: AND goes on seasonal discounts, but that is not AND’s business model.

Product line extensions: AND has extended its line of late. New product introduction: AND MAN Increase product quality: LAVISCOSE, SHOP FOR CHANGE Improve and intensify promotional activity: since 2011, the promotion has taken front

seat, after relative increase in sales and revenue.

INTEGRATED MARKETING COMMUNICATION: PORMOTION PLAN

“Integrated marketing communication (IMC) is an approach to brand communications where

the different modes work together to create a seamless experience for the customer and are

presented with a similar tone and style that reinforces the brand’s core message. Its goal is to

make all aspects of marketing communication such as advertising, sales promotion, public

relations, direct marketing, personal selling, online communications and social media work

together as a unified force, rather than permitting each to work in isolation, which in turn

maximizes their cost effectiveness.” (Clow, 2006)

Advertisement

AND uses various marketing tools such as electronic, print, outdoor, direct and personalized,

social and affiliate marketing.

AND would like to go in tandem with the technology – social media will be one of our major

marketing tools in the future with mobile apps and e mailers which will be more personalized

and targeted.

Sales Promotion

The brand interacts with its customer by offering schemes and gift vouchers through its

online site. They offer additional 5% discount to customers who buy goods worth Rs. 15000

and more. People can also send gift vouchers through the site to their friends, family and

business associates. Gift vouchers are a perfect present solution when one can’t find the right

gift or is short of time.

AND uses various marketing tools such as electronic, print, outdoor, direct and personalized,

social and affiliate marketing to interact with the consumers.

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3. stylebyand, www.facebook.com

An academic report on ANDMA-FMG2012-14

AND would like to go in tandem with the technology – social media is one of the major

marketing tools, and in the future with mobile apps and e -mailers which will be more

personalized and targeted.

The brand interacts with its customer by offering schemes and gift vouchers through its

online site. They offer additional 5% discount to customers who buy goods worth Rs. 15000

and more. People can also send gift vouchers through the site to their friends, family and

business associates. Gift vouchers are a perfect present solution when one can’t find the right

gift or is short of time.

Social Media

Facebook and twitter have been used as a communication tool since 2009. Below is the

analysis of the Facebook page ‘stylebyand’.

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4. stylebyand, www.facebook.com

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AND joint the Facebook page in 2009, December. When the page was formed it only had

random updates of sales and offers with stock update pictures. The communication was

simple and to the point. It could not engage the audience and neither could it create a buzz.

But gradually with the passage of time, the AND page seems to have gained momentum.

Anything that relates to AND is posted there. Unrelated posts such as hair styling and make

up are also posted to give the audience something new before they forget about AND.

Customers have become active switchers now a days due to a flood of competitive brands in

the market. Thus it gets all the more important for AND to hold on its customers tight by

putting such posts that invite feedbacks and responses.

11. BRANDING

BRAND PRISM

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Brand Prism for AND:

BRAND EXTENTION

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Table 11. Brand Prism for AND

CAPABILITIES:

Fashionable and comfortable

RALLYING

CRY: fashion for

aspirational

women

PERSONALITY:

Working women,

INTERNAL CULTURES AND

VALUES:

Anticipating needs, empathy

SHARED VALUES AND

COMMUNITY:

Bridge between mass and luxury,

aspirational

NOBLE PURPOSE:

Experimental

ASPIRATIONAL SELF-IMAGE:

Self proclaimed celebrity

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Brand architectureTwo of the important strategic tools: The brand-product matrix and the brand hierarchy help

to characterize and formulate branding strategies by defining various relationships among

brands and products. The brand architecture for AND is discussed with the help of the the

tools.

1. Brand product matrix

ADIL is the parent company that has several brands under it. The following matrix defines all

the brands and their product line.

Table 12. Brand Product Matrix

BRANDS PRODUCTS

AND Apparel Jewellery Bags

GLOBAL

DESE

Apparel Jewellery Bags Footwear

ANITA

DONGRE

Apparel

GRASSROOT Apparel

INTERPRET Apparel

CLAY Gymnasium

The above matrix explains the relationship between various brands and their products. The

brand line for AND is as follows:

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Source: Kotler

Line and category extension: Line Extensions occur when a company introduces

additional items in the same product category under the same brand name such as

new flavors, forms, colors, added ingredients, and package sizes. This is as opposed

to brand extension, which is a new product in a totally different product category.

Line extension occurs when the company lengthens its product line beyond its current

range. The company can extend its product line down-market stretch, up-market

stretch, or both ways.

Source: Kotler

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AND

AND

TOPS BOTTOMS DRESSES ACCESSORIES

BAGS JEWELLERY BELTS STOLES

AND MAN

APPAREL

Leveraging the brand

Line extention

Stretching the brand vertically

up down

Category extention Co-branding

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AND continuously works on its line extension by introducing more and more variations in

the apparels. The category extension has been through the accessories introduction, and AND

MAN.

Brand portfolio: AND follows the basic brand portfolio principles extremely carefully

which say:

– Maximize market coverage so that no potential customers are being ignored. All

ADIL brands have varied market targets and have covered the potential customers of

all segments through the array of brands they offer.

– Minimize brand overlap so that brands aren’t competing among themselves to gain

the same customer’s approval. All the brands have different markets so they do not

over lap each other and hence no competition among the company. AND has a

different target group and rest other brands have completely different target groups.

Role of AND in brand portfolio:

FLANKERS CASH COW

LOW END ENTRY

LEVEL

HIGH END

PRESTIGE

AND is a cash cow along with Global Desi. “Together, AND and Global Desi, the two Pret

labels contribute to ~96% of the company’s gross sales with the balance coming in from the

couture segment. “Anita Dongre - Inter-pret” and “Grassroot” currently form a small

proportion of overall sales.” (ICRA, 2012)

2. Brand hierarchy

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Table 13. Brand Hierarchy for ADIL

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Corporate Brand: The highest level of the brand hierarchy technically always involves one

brand—the corporate or company brand. For legal reasons, the company or corporate brand is

almost always present somewhere on the product or package, although it may be the case that

the name of a company subsidiary may appear instead of the corporate name. ADIL is the

corporate brand that has various other brands under it.

Family Brand: At the next-lower level, a range / family brand is defined as a brand that is

used in more than one product category but is not necessarily the name of the company or

corporation itself.

Individual brand: An individual/ product line brand is defined as a brand that has been

restricted to essentially one product category, although it may be used for several different

product types within the category. AND and Global Desi have vast product line and category

and so are identified as Individual brands.

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BRAND HIERARCHY

Corporate brand

Family brand

Individual brand

Modifier

BRAND HIERARCHY

ADIL

-

AND, Global Desi, Interpret,

Timeless, Anita Dongre, Grassroot

-

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Modifiers: A modifier is a means to designate a specific item or model type or a particular

version or configuration of the product.

BCG matrix

AND is a STAR according to the BCG matrix. A star is a unit with a high market share in a

fast-growing industry. The hope is that stars become the next cash cows. Sustaining the

business unit's market leadership may require extra cash, but this is worthwhile if that's what

it takes for the unit to remain a leader. When growth slows, if they have been able to maintain

their category leadership stars become cash cows, else they become dogs due to low relative

market share. AND is a part of a rapidly growing industry in India and it even has a medium-

high market share for now. If the brand carefully strategizes its growth then it might become

a cash cow. But if the FDI or other factors play a toll on it then it would soon turn into dog,

which means that the company will have to divest as per the BCG strategies.

Being a star, AND should adopt one of the following strategies:

BUILD

HOLD

ANSOFF matrix for AND: GROWTH STRATEGY

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Market Penetration: Market penetration is the easiest way to grow in an expanding market.

However, it becomes more difficult as the market matures and competition increases. The

obvious step is to increase advertising or add more sales people to increase

sales. Alternatively, AND can win business from competitors through competitive pricing,

discounting, vouchers or other offers. AND can also boost sales by providing additional

incentives to sales staff through commissions, bonuses or other reward schemes or by

introducing customer loyalty schemes.

Market Development: Market development is a riskier strategy and is most appropriate for

AND where the core competence is the product. One way to develop the market is to

introduce new sales and distribution channels. The most obvious example is to move online

and use the Internet to promote and sell products. But markets can also be developed through

more traditional means such as developing a strategic partnership with a business that already

operates in the target market. Setting up shops, warehouses or offices in the target areas can

develop new geographical markets.

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Product diversification: She is also heading towards the next big challenge: AND Men have

just been launched. Very few designers are able to snag both genders. Diversification is the

most risky strategy since it involves two unknowns: new products with unknown

development problems and new markets with unknown characteristics. But it can offer the

best potential for growth.

source: www.andindia.com

The most common way for a business to diversify is to develop new products that take

advantage of the core competencies of the organization. Alternatively, a business can

diversify by acquiring another business that operates in a separate market.

Product Development: AND should adopt product development by developing new and

improved products for the present market. Since AND is a brand that caters to a defined

segment of women, so it needs to concentrate on new product development. More

investments should be made in research and customer’s expectations and demands should be

monitored. Developing new products for an existing market is also more risky than market

penetration. It is often most appropriate where the strength of the business lies in its

relationship with customers.

An alternative growth strategy is to start to carry out activities further back up the supply

chain, so distributors may add warehousing, wholesaling or even importing activities that

increase the scale of the business while maintaining the same customer base.

12.COMPETITIVE ANALYSIS

COMPETITORS

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5. www.forbesindia.com

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When asked the respondents in the questionnaire as to where did they shop if not AND, they

chose Zara, Mango, Vero moda, Forver21. The details are as follows:

Table 14. Competitors for AND according to the survey

BRANDS FREQUENCY %

MANGO 6 25

ZARA 8 33.33333333

FOREVER 21 6 25

REMANIKA 2 8.333333333

VERO MODA 6 25

The above chosen brands are direct competitors for AND owing to the merchandise and the

price range. Their target group is also similar. And thus ZARA poses to be the number 1

competitor for AND. Even AND submits to it and have adopted the Zara model of fast

fashion. They come out with new merchandise every 15 days. Though the brand philosophy

is different and so are the designs, but since they target the same group with a similar price

range, so ZARA poses to be a serious threat to AND. AND is the only designer brand to have

survived tuff foreign competition in India.

Table 15. AND and competitorsN Mean Std. Deviation

PREFERENCE for AND student 2 2.00 .000

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working 20 2.15 1.268

self employed 8 2.88 1.553

Total 30 2.33 1.322

preference for zara student 2 1.00 .000

working 20 2.85 1.348

self employed 8 3.13 1.885

Total 30 2.80 1.518

preference for promod student 2 4.50 .707

working 20 3.15 1.348

self employed 8 3.00 1.309

Total 30 3.20 1.324

preference for forever 21 student 2 4.50 .707

working 20 3.30 1.418

self employed 8 2.75 1.282

Total 30 3.23 1.382

preference for vero moda student 2 3.00 .000

working 20 3.55 1.432

self employed 8 3.25 1.389

Total 30 3.43 1.357

COMPETITIVE STRATEGIES

ADIL is the parent company, which has various brands under its name. AND is one such

brand that caters to the aspirational needs of a consumer. With so many different brands,

Dongre makes sure that she establishes her feet in all the market segments. To make her

brand visible, she not only sales through exclusive retail outlets, but also through the brand

website, e-commerce, pantaloons, shopper stop, Lifestyle and Central. Considering ZARA to

be a strong competitor, AND comes up with new collection every 15 days. It keeps on

rotating old and creating new merchandise to keep the costumers engaged. AND introduced

organic cotton clothes last year before any other competitor thought of it. It is also affiliated

to SHOP FOR CHANGE.

AND follows PUSH-PULL model. Sales are anticipated in advance and merchandise is

launched for each season in the stores.

Supply chain strategy

Efficiency strategy

Responsiveness strategy

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Credit: Dr. Ramesh

Porter’s generic strategy

Porter simplifies the competitive strategies by reducing them down to the three best strategies. They are cost leadership, differentiation, and market segmentation. Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope.

TABLE 16. PORTER’S GENERIC STRATEGY

NARROW

MARKET

SCOPE

SEGMENTATION

BROAD DIFFERENTIATION COST

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Competitive Strategy

Supply Chain Strategy

efficiency responsiveness

logical drivers

facilitiesinformation

Inventorysourcing

Transportation Pricing

Cross Functional Drivers

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MARKET

SCOPE

LEADERSHIP

UNIQUENESS

COMPENTENCY

LOW COST

COMPETENCY

PORTER’S GENERIC STRATEGY: AND

Combining a market segmentation strategy with a product differentiation strategy is an effective way of matching AND’s product strategy (supply side) to the characteristics of AND’s target market segments (demand side) is the model that AND uses. The product differentiation strategy has two models:Shareholder value ModelUnlimited resource Model.

AND follows the shareholder value mode that the timing and the use of specialized knowledge can create a differentiation advantage as long as the knowledge remains unique. Dongre is the creative head and also a designer, which brings in the unique selement in AND. This model suggests that customers buy products or services from an organization to have access to its unique knowledge. AND being a premium brand and a designer wear brings along with it the uniqueness of the brand and therefore the shareholder value model get implemented.

13. BUSINESS UNIT STRATEGIC PLANNING

Table 17. SITUATION ANALYSIS – SWOT

Strength:

Vast experience of the promoters in the fashion

industry, their expertise in designing aided by a

professional management team

Established brand presence in “prêt” segment for

women’s fashion garments; diversified presence

both in western wear segment through its flagship

brand, “AND” and in ethnic /Indo-western wear,

through “Global Desi” brand

Comfortable financial profile of the company as

reflected in moderate gearing, healthy return on

capital employed and adequate coverage indicators

Fabrics, one of AND’s main strengths. Her father

was a manufacturer of children’s clothes, and guided

her on who and where to source it from

Weakness:

Increased capital expenditure expected to

maintain marginal pressure on the debt

metrics < high financial risk>

Working capital intensive nature of the retail

business

Moderate scale of operations, ability to

replicate working capital and operating

efficiency at a larger scale remains to be seen

Churning out fresh designs every month to

more than 85 stores and more than 270

points of sale is quite a challenge.

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Opportunity

Growth prospects<industry growth> remain buoyant

for the women’s wear market, both for the branded

ethnic wear segment as well as the western wear

market which has seen strong growth; organized

retail market remains under penetrated in the

women’s wear category

Threats

Profitability vulnerable to rising raw material

prices, managing real costs remains a

challenge

Competition from various established

foreign as well as national & local regional

brands; aggressive discounting by competing

brands could affect the industry’s prospects

Sales vulnerable to changing tastes and

preferences which vary across states and

fashion trends that change fast; inventory

remains susceptible to markdowns in case of

a sharp demand slowdown

Although its logistics and distribution is

running smoothly at present, it might pose

problems as AND scales up.

14. PRODUCT LIFE CYCLE

Product life cycle is the stages through which a product or its category bypasses. From its

introduction to the marketing, growth, maturity to its decline or reduce in demand in the

market. Not all products reach this final stage, some continue to grow and some rise and fly

to the cloud.

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According to my research I conclude that AND is on its growth Stage as per the parameters

in the above diagram.

PRODUCT LIFE CYCLE FOR AND

A company’s positioning and differentiation strategy must change as the product, market and

competitors change over the product life cycle, to say that a product life cycle has a life cycle

is to assert four things:

1) Products have a limited life

2) Product sales pass through distinct stages, each posing different challenges opportunities

and problems to seller

3) Profits rise and fall at different stages of the product life cycle

4) Products require different marketing, financial, manufacturing, purchasing, man power

strategies in each life cycle. (Kotler pg no.291)

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AND: growth stage

Growth comes with the acceptance of the innovation in the market and profit starts to flow.

As the monopoly still exists companies can experiment with new ideas and innovation in

order to maintain the sales growth. This stage is the best time to introduce new effective

products in the market thus creating an image in the product class in the presence of its

competitors who try to copy or improve the product and present it as a substitute. The Growth

stage is where the product starts to grow.

In this stage a very large amount of money of AND is spent on advertising. They are

concentrating on telling the consumer how much better their product is than the competitors'

products. They use TV and radio commercials, magazine and newspaper ads, or word-of-

mouth. If AND is successful with the advertising strategy then they will see an increase in

sales. Once the sales begin to increase, share of the market will stabilize.

                        

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ANNEXURES

QUESTIONAIRE -1

Reliability Statistics for the questionaireCronbach's Alphaa

N of Items

-10.725 20a. The value is negative due to a negative average covariance among items. This violates reliability model assumptions. You may want to check item codings.

1. What is your age group?

Below 16

16-25

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25-35

35-45

Above 45

2. What is your gender?

Male

Female

3. What is your work status?

Student

Working

Self-employed

Retired

Others please specify...................................

4. Are you aware of the fashion brand - AND?

Yes

No

5. How did you hear about AND?

Television

Print media

Social media

Word-of-mouth

Others please specify...................................

6. How often do you shop from AND?

Weekly

Monthly

Once in six months

Never

7. Why do you prefer AND over any other brand?

Designs

Fit

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Quality

Price

8. What category of merchandize do you generally purchase from AND?

Clothing

Bags

Shoes

Accessories

9. AND in your opinion is (Rate your preference):

Fashionable Non- fashionable

Expensive Affordable

Excellent Poor quality

quality

Party wear Casual wear

10. Where do you prefer purchasing AND products?

Retail outlets

Online

EBOs like Shopper stop, lifestyle, etc

Others please specify.........................................................

11. How do find the overall experience of shopping from AND?

Very good

Good

Average

Bad

Very bad

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1 2 3 4 5 6 7

1 2 3 4 5 6 7

1 2 3 4 5 6 7

1 2 3 4 5 6 7

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12. How likely are you to shop at AND in the next 3 months?

Very likely

Likely

Maybe

Unlikely

Very unlikely

13. Rate your preference on a scale of 1 to 5 for each of the brands listed below:

AND

Zara

Promod

Forever21

Vero Moda

QUESTIONAIRE -2

Perceptions The following statements relate to your feelings about the particular

bank you have chosen. Please show the extent to which you believe

this bank has the feature described in the statement. Here, we are

interested in a number from 1 to 7 that shows your perceptions about

the bank.

You should rank each statement as follows:

Strongly Strongly

Disagree Agree

1 2 3 4 5 6 7

Statement Score

1. The bank has modern looking equipment.

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Statement Score

2. The bank's physical features are visually appealing.

3. The bank's reception desk employees are neat appearing.

4. Materials associated with the service (such as pamphlets or

statements) are visually appealing at the bank.

5. When the bank promises to do something by a certain time, it

does so.

6. When you have a problem, the bank shows a sincere interest

in solving it.

7. The bank performs the service right the first time.

8. The bank provides its service at the time it promises to do so.

9. The bank insists on error free records.

10. Employees in the bank tell you exactly when the services will

be performed.

11. Employees in the bank give you prompt service.

12. Employees in the bank are always willing to help you.

13. Employees in the bank are never too busy to respond to your

request.

14. The behaviour of employees in the bank instils confidence in

you.

15. You feel safe in your transactions with the bank.

16. Employees in the bank are consistently courteous with you.

17. Employees in the bank have the knowledge to answer your

questions.

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Statement Score

18. The bank gives you individual attention.

19. The bank has operating hours convenient to all its customers.

20. The bank has employees who give you personal attention.

21. The bank has your best interests at heart.

22. The employees of the bank understand your specific needs.

QUESTIONAIRE -3

Expectations This section of the survey deals with your opinions of banks. Please

show the extent to which you think banks should posses the following

features. What we are interested in here is a number that best shows

you expectations about institutions offering banking services.

You should rank each statement as follows:

Strongly Strongly

Disagree Agree

1 2 3 4 5 6 7

Statement Score

1. Excellent banking companies will have modern looking

equipment.

2. The physical facilities at excellent banks will be visually

appealing.

3. Employees at excellent banks will be neat in their appearance.

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Statement Score

4. Materials associated with the service (pamphlets or

statements) will be visually appealing at an excellent bank.

5. When excellent banks promise to do something by a certain

time, they do.

6. When a customer has a problem, excellent banks will show a

sincere interest in solving it.

7. Excellent banks will perform the service right the first time.

8. Excellent banks will provide the service at the time they

promise to do so.

9. Excellent banks will insist on error free records.

10. Employees of excellent banks will tell customers exactly

when services will be performed.

11. Employees of excellent banks will give prompt service to

customers.

12. Employees of excellent banks will always be willing to help

customers.

13. Employees of excellent banks will never be too busy to

respond to customers' requests.

14. The behaviour of employees in excellent banks will instil

confidence in customers

15. Customers of excellent banks will feel safe in transactions.

16. Employees of excellent banks will be consistently courteous

with customers.

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Statement Score

17. Employees of excellent banks will have the knowledge to

answer customers' questions.

18. Excellent banks will give customers individual attention.

19. Excellent banks will have operating hours convenient to all

their customers.

20. Excellent banks will have employees who give customers

personal service.

21. Excellent banks will have their customers' best interest at

heart.

22. The employees of excellent banks will understand the specific

needs of their customers.

CONSUMER DILO

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