1

Report

On

Perception about
Subject:
Organizational Behavior-I

INDEX Sr. no.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Acknowledgement Abstract Objectives of the Present Study Factors affecting attitude towards brands Secondary data Research Design Methodology Findings Limitations Summary and conclusions Bibliography

Particulars

Page No. 4 5 8 9 10 11 13 17 28 29 31

ACKNOWELDGEMENT
ANY SINGLE WORK IS A PRODUCT OF EFFORTS, GUIDANCE AND BLESSINGS OF MANY PEOPLE. for our project this statement is also equally true. We would like to express our sincere gratitude to the AES Post Graduate Institute of Business management for introducing the project work in our curriculum. Our sincere thanks to, director of the institute for encouraging such projects related to our field of study and for giving us excellent opportunity to learn from experience. We would like to forward our sincere thanks to for providing the necessary guidance required for the project. Thanks one and all for helping us recognize POSSIBILITIES ARE UNLIMITED ONLY WE NEED TO EXPLORE THEM.

Abstract
Determining customers perception about the branded apparel is the main theme of the survey conducted by our team. The study was conducted using the personal survey method on respondents from Ahmedabad, Gujarat. Sample size for our survey was 100. Utmost care is taken to ensure that people from all age groups are taken. The major findings of the study depict that out of the various parameters taken into consideration, customers consider quality as the most important parameter while opting for brands. In addition, the income plays an important role affecting the perception. When we see the rankings given to various parameters, we can see an obvious pattern in most response of the respondents. Most respondents ranked Quality as 1st (51), Durability as 2nd (26), Value for money as 3rd (18), Comfort as 4th (20), Availability as 5th (25), Brand Loyalty as 6th (21) and Status as 7th (17).

The Indian Apparel Industry

The Indian apparel industry plays an important role in generating foreign exchange reserves and creating employment opportunities. India is the sixth largest exporter of readymade garments in the world with apparel worth 9.7 billion dollars exported from the country in 2007-08 (Jairam, 2009). The concept of readymade garments is relatively new for the Indians. Traditionally, Indians preferred dresses stitched by local tailors, who had tailoring units in townships or cities and catered exclusively to local demand. The growing fashion consciousness during the 1980s and the convenience offered by readyto-wear garments were largely responsible for the development of the branded apparel industry in India. Other factors that contributed to its growth were greater purchasing power in the hands of the youth, access to fashion trends outside the country and the superior quality of fabrics. The 1990s witnessed a drastic change in the overall economic environment of the country. Liberal trade and new investment policies characterized the period. The effect of liberalized polices was seen in the clothing industry as well. In 2001-02, the domestic apparel market was estimated at Rs 431 billion, of which the readymade garments business was estimated at Rs. 298.5 billion. The branded apparel market accounted for Rs.90 billion of this Rs.298.5 billion market. Indias domestic market for clothing, textiles and fashion accessories is currently worth Rs. 113,500 crores as per the India Retail Report 2007 estimates. Nearly 19% of this market is organized. Of the total market size of Rs. 113,500 crores, menswear takes up 32 per cent, followed by womens wear at 29 per cent, kids wear at 13 per cent, uniforms at 8 per cent, unisex apparel at 7 per cent and non apparel fashion accessories at 11 per cent (India Retail Report 2007). Thus, it can be

7 seen that a huge chunk of the market is still dominated by unbranded clothing and remains to be tapped by branded apparel manufacturers. The Indian domestic and export market for textile and apparel is expected to grow at 6.5 per cent and 12 per cent Compounded Annual Growth Rate (CAGR), respectively. The growth in the domestic market is driven by favorable demographic factors, rise in disposable incomes and a shift towards branded apparel. The growth in exports is expected because of International retailers looking at India as the best alternative to China of sourcing of apparel. In order to successfully exploit this potential, branded clothes manufacturers need to be cognizant of customers evaluation of and attitude towards branded vs. unbranded apparel. The present study primarily focuses on how consumers evaluate branded clothes based on factors like price, quality, comfort, etc.

Objectives of the Present Study

The present study has been undertaken to understand the importance customers attach to different parameters related to clothing while making a choice of the clothes they buy and also to analyze how they evaluate branded apparel vis--vis unbranded apparel. In particular, the research focuses on: 1. Finding out major factors considered to be important by customers while choosing clothes. 2. Analysing the effect of these factors on the percentage of branded clothes the customer has in his/her wardrobe. 3. Understanding the gap in customers perception regarding branded vs. unbranded clothes along different parameters.

Factors affecting attitude towards brands

On the basis of the previous studies undertaken in this area, a number of factors have been identified which affect the perception of customers in respect of brands and consequently their evaluation. These factors have been incorporated in the current study to understand their effect on Indian customers choice of clothing.

Brand Awareness
When deciding between competing brands, customers may depend on their brand knowledge, which determines how they think and respond to different stimuli regarding a particular brand.

Price
Price has been defined as an important factor which influences the brand image which consumers attach to brands.

Quality Perception
Customer attitude towards brands also depends on the consumer's perception of the overall quality of the brand.

Overall Brand Attitude

In addition to specific such brand as attributes, an important of brand association is the overall brand attitude. Brand attitude is based on certain attributes durability, incidence defects, serviceability, features, performance, or "fit and finish".

10

Secondary Data

Age (in years) Gender Income (monthly) Occupation

15-25 (24.8%)

26-35 (25.1%)

36-45 (25.2%) Female (44.5%)

>45 (24.9%)

Male (55.5%) <10000 (9.5%) Student (16.5%) 1000120000 (33.3%) Housewife (7.3%)

20001-30000 (33.5%) >30000 (23.7%) Public Selfsector employed employee (20.8%) (15.8%) Private sector Retired employee (7.3%) (32.3%)

11

Research design
This research design is Descriptive in nature. The research team is interested in knowing about the perception of people about branded apparel. For this purpose, the research team has conducted a survey using the questionnaire (attached in appendix). People of different age group was asked several questions to elicit their perception about branded apparel i.e. why they purchase branded apparel, when they purchase, how many times in a year, from where and so on. In our research, we have also included the factors the factors as age, income and occupation that affect the perception. Age: - Age was taken as a factor affecting perception because age has considerable apparel. Income: - Whether a person goes for branded apparel or not depends on the income of the person as branded apparel are usually more expensive than non branded apparel and people with low income, many-a-times, can not afford that. Occupation: - The occupation of a person has a major role to play in his or her perception for branded apparel. Students, professionals and service Furthermore, the research team has also focused on the factors that people consider when they opt for branded apparel such as quality, value for money, durability and so on. Based on the responses the research team obtained, the data has been segregated and presented in form of tables and graphs/charts and conclusions are drawn on the basis of analysis done. affect on the brands chosen by people. Younger generation of the people is more brand conscious and prefer branded

12

Only primary data is used for analysis and is compared with secondary data found on web. The secondary data was from a research done in Northern part of India. So this data can be used for comparing perception difference between people of northern and western part of India.

13

Methodology
Methodology used to prepare this project report includes the following steps. 1. Preparing the questionnaire, 2. Collection of Primary data by interview method, For the purpose of our study, the research team has done a sample survey of 100 respondents. Direct interview was preferred by research team to ensure that data are collected from people of different age and income groups (stratified random sampling) and to get desired response. 3. Tabulation of the data collected, 4. Analyzing and interpreting the data with the use of graphs and charts. 5. Reaching to the Final Conclusion.

14

Sample Questionnaire QUESTIONNAIRE FOR THE SURVEY OF THE PERCEPTION ABOUT BRANDED APPAREL AMONG PEOPLE
NAME: AGE:
15 TO 25 YEARS 25 TO 40 YEARS 45 TO 60 YEARS ABOVE 60 YEARS

INCOME (PER ANNUM):

BELOW 150,000 150,000 TO 400,000 400,000 TO 10,00,000 10,00,000 TO 25,00,000 ABOVE 25,00,000

OCCUPATION:
STUDENT PROFESSIONAL SERVICE BUSINESS HOME MAKER RETIRED

DO YOU PURCHASE BRANDED APPAREL?

YES NO

IF YES, CONTINUE OR ELSE GO TO SECTION B WHICH BRANDS DO YOU MOST COMMONLY BUY?
ALLEN SOLLY ARROW DIESEL FRANK JEFFERSON GLOBUS

15
INDIGO NATION INDIAN TERRAIN JOHN PLAYERS JOHN MILLER KOUTONS LEE LEE COOPER LEVIS LOUIS PHILLIPE PEPE PETER ENGLAND PROVOGUE RAYMONDS REID N TAYLOR SPYKAR VAN HEUSEN WRANGLER ANY OTHER _______________

HOW DID YOU GET TO KNOW ABOUT THE CURRENT BRAND(S) THAT YOU PURCHASE?
WORD OF MOUTH ADVERTISEMENT PERSONAL EXPERIENCE

DO YOU TRY A NEW BRAND LAUNCHED IN THE MARKET?

YES NO

RANK YOUR PREFERENCE FOR THE CRITERIA WHILE PURCHASING A BRAND

QUALITY DURABILITY STATUS COMFORT BRAND LOYALTY VALUE FOR MONEY AVAILABILITY

DO YOU STICK TO ANY PARTICULAR BRAND?

YES

NO

16 WHEN DO YOU NORMALLY PURCHASE?

DURING SALES OFF SALE SEASONS BOTH

HOW OFTEN DO YOU PURCHASE DURING OFF SALE SEASONS?

ONCE IN ONCE IN ONCE IN ONCE IN NEVER A 6 3 A YEAR MONTHS MONTHS MONTH

WHERE DO YOU PREFER TO PURCHASE THE APPAREL FROM?

EXCLUSIVE SHOWROOMS FACTORY OUTLETS BOTH

HOW SATISFIED ARE YOU WITH YOUR BRAND?

VERY SATISFIED SATISFIED NOT SO SATISFIED NOT AT ALL SATISFIED

DO YOU PURCHASE NON- BRANDED APPAREL AT ALL?

YES NO

WHY DONT YOU PREFER BRANDED APPAREL?

EXPENSIVE AVAILABILITY OF OTHER OPTIONS VARIETY ANY OTHER ___________________

17

Findings
Personal details of the Respondents
Age
Table AGE ( in Years) 15-25 25-40 40-60 60 AND ABOVE Figure Number of respondents 30 30 25 15

Age of Respondents

60 A N D A B OVE 1 5% 1 5-25 30%

40-60 25%

25-40 30%

15-25

25-40

40-60

60 AND ABOVE

Of all the respondents who buy branded apparel majority of them were youngsters in the age brackets of 15 to 25 years and 25 to 40 years.

18

Income of the respondents: Table Income (in Lakhs) < 1.5 1.5 to 4 4 to 10 10 to 25 > 25

No. of respondents 32 39 19 8 2

Figure
Income of respondents
39 40 35 30 25 No. of 20 respondents 15 10 5 0 < 1.5 1.5 to 4 4 to 10 10 to 25 > 25 Income Group 19 No. of respondents 8 2 32

Of the respondents who buy branded apparel majority of them belong to the income group of 10 to 25 Lakhs per annum.

19

Occupation
Occupation Student Professional Service Business Person Home Maker Retired Figure
Occupation of Respondents

No. of respondents 27 19 27 13 12 2

Home Maker 12%

Retired 2% Student 27%

Student Professional Service Business Person Home Maker Retired

Business Person 23% Professional 9%

Service 27%

A majority of students and service oriented people prefer branded apparel, followed by professionals and business class people.

20

Preference for branded clothes:

People who prefer Branded clothes Number of people who dont prefer Branded clothes TOTAL Respondents 107 18 125

YES NO

We had conducted the survey of 125 people. Out of that 107 people purchase branded apparel and 18 do not purchase branded apparel. This shows a growing trend among people opting for branded apparel.

21

Preference for different brands

The table below indicates the number of people preferring different brands. Table Brand Name ALLEN SOLLY ARROW DIESEL FRANK JAFFERSON GLOBUS INDIGO NATION INDIAN TERRAIN JOHN PLAYERS JOHN MILLER Positive response 14 15 Brand Name KOUTONS LEE LEE 20 COOPER 2 LEVIS' LOUIS 10 PHILLIPE 0 PEPE PETER 3 ENGLAND PROVOGU 15 E RAYMOND 9 S Positive response 26 36 21 42 10 29 15 21 22

22 Figure
Brand Preference AN O ER Y TH W RAN LER G
21 25 18 35 4 22 21 15 29 10 Pos itive res pons e 42 21 36

VAN H SEN EU SPY KAR REID N TAY R LO RAY O DS M N PR VO U O G E PET ENG ER LAND PEPE LO IS PH U ILLIPE LEVIS' LEE CO PER O LEE KO TO S U N JO N M H ILLER JO N PLAY S H ER IN DIAN TER RAIN IN O N DIG ATIO N

26 9 15 3 0 10 2 20 15 14
No of res pons es

G BU LO S FRAN JAFFERSO K N DIESEL AR O R W ALLEN SO LLY

According to this graph we can see that people prefer buying different brands and do not stick to any particular brand. Hence most of the people do not stick to any specific brand.

23

Rankings given to the parameters for preferring branded apparel:

Table
RANKS 1 2 3 4 5 6 7 QUALITY 51 25 12 4 1 0 0 DURABILITY 3 26 20 25 18 5 5 STATUS 2 5 17 17 15 19 17 COMFORT 35 24 13 20 7 5 4 BRAND LOYALTY 4 8 9 9 19 21 23 VALUE FOR MONEY 5 9 18 13 15 28 18 AVAILABILITY 0 2 11 12 25 22 33

Figure

C H O IC E O F F P E O P L E
60 50 PRESPONDENT'S PREFERENCE 40 30 20 10 0 1 2 3 4 5 6 7 R A N K S G IV E N T O F E A T U R E S Q U A L IT Y D U R A B IL IT Y S TA TU S C OMFORT B R A N D L O YA L T Y V ALUE FOR M ONEY A V A IL A B IL IT Y

When we see the rankings given to various parameters, we can see an obvious pattern in most response of the respondents. Most respondents ranked Quality as 1st (51), Durability as 2nd (26), Value for money as 3rd (18).

24

Frequency of purchasing the branded apparel:

Frequency once in a year once in 6 months once in 3 months once in a month Response 29 26 31 14

Frequency of Purchase

once in a month 1 4% once in a year 29%

once in a year once in 6 months

once in 3 months 31 %

once in 3 months once in a month

once in 6 months 26%

When asked how frequently they purchase during off sale seasons 31 people purchased once in 3 months, 29 people purchased once in a year and 26 people purchased once in 6 months. This shows that there are no fixed patterns among people to purchase during off sale seasons.

25

Purchasing branded apparel during Sale/ Off-Sale Season:

Sales 18

Off-Sales 28

Both 54

Figure
Sales, Off-sales and Both
Sales 1 8%

B o th 54% Off-Sales 28%

Sales Off-Sales Both

People do not have any criteria for purchasing the branded apparel particularly during sale period. They purchase both during sales and off sale seasons.

26

Frequency of purchase during Off-Sale season:

In Ahmedabad, people generally purchase even during Off-Sale season. And the frequency of purchasing during Off-sale is once in 6 months. 40% of the respondents purchase even during Off-sale season. The chart below shows how frequently people purchase during Off-sale Season. Figure

Frequency of Purchase during off-sales

once in a month 1 0% once in a year 34%

once in 3 months 1 6%

once in a year once in 6 months once in 3 months once in a month

once in 6 months 40%

27

This table shows the complete details of the factors included in the survey.
Age (in years) Gender Income (monthly) 15-25 (30%) 24-40 (30%) 40-60 (25 %) Female (44%) 150000400000 (33.3%) 400000-1000000 (33.5%) Business person (23%) Once in a month (14%) 10000002500000 >2500000 (23.7%) Homemaker (12%) Retired (2%) >60 (15%)

Male (56%) <150000 (9.5%)

Student Occupation (27%) Purchasing Once in during off- a year sales (29%)

Professionals Service (9%) (27%) Once in 6months (26%) Once in 3months (31%)

28

Limitations of the study

1. The scope of this study is limited to a specific geographical areaAhmedabad (western part of India only). The results and findings of the study are thus limited in their ability to be projected to the entire state. 2. There is no denying the fact that because of socioeconomic and cultural differences, there is a variation in perceptions of people and it is difficult to incorporate in our study. 3. In addition, the time was too less to cover entire city and understand the perception of people from different region within the same city, thus limiting the number of respondents.

29

Summary and conclusions

Understanding perception about people from different age group requires is very important from the view point of Apparel Industry. Firms in apparel industry need to understand the demographic characteristics to market heir product such as, age, income, preference, occupation etc. The Indian apparel industry is growing by leaps and bounds. Though highly lucrative, there is stiff competition in the market with branded manufacturers vying for a share of the pie. The findings of the present study provide important insights to all clothes manufactures in India (both branded and unbranded) to increase their foothold and successfully compete in the Indian apparel market. Understanding customers in terms of what they expect/associate with a brand is quite important from the side of branded players. Customer loyalty has become a very fickle term in todays highly competitive and volatile market. Customers may prefer one brand over another if they perceive the brand as having high value (quality) and matching with their selfimage (durability) more closely. The findings of the study clearly bring forth the importance of quality as an attribute in influencing customers choice of clothes, whether branded. Thus, if quality is concentrated upon by companies, it can go a long way in bringing the apparel of that company into the choice set of customers. All the parameters that are ranked by the respondents can be useful for the companies while deciding about the target group of customers. People, as per the survey, opt for the banded apparel on the basis of

30 their perception about brand(s). For some respondents, what matters in the brand is quality; for other set of respondents, its durability; still for other, its comfort that branded apparel offers compared to unbranded apparel.

31

Bibliography
Thesis on UNDERSTANDING CUSTOMERS PERCEPTION AND EVALUATION OF BRANDED APPAREL By

Dr. Reeti Agarwal

Faculty, Jaipuria Institute of Management, Uttar Pradesh

Dr. Ankit Mehrotra

Faculty, Jaipuria Institute of Management, Uttar Pradesh