Brand Positioning & Competitive

Standing of Grasim Suitings

MARKETING MANAGEMENT
SEMESTER- II SECTION- B

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN

MANAGEMENT

Contents:-
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Introduction.................................................. 3
Company briefing........................................ 4
Mission and objectives................................ 5
Product.......................................................... 6
Brand positioning........................................ 8
Findings……................................................ 10
SWOT Analysis............................................ 23
BCG Matrix................................................. 25
Conclusion.................................................... 27
Declaration................................................... 31

INTRODUCTION
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The Aditya Birla Group is a major player in all the industry sectors it operates in.
The Group has been adjudged the best employer in India and among the top 20 in
Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. The
origins of the group lie in the conglomerate once held by one of India's foremost
industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these companies
to his grandson, Mr. Aditya Vikram Birla – the father of the current Chairman of
the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is the
grandson of Mr. Basant Kumar Birla, who heads his own independent business
conglomerate. Several other members of the Birla Family, own and run their
independent business groups.

Grasim Industries Limited was incorporated in 1948; it is the largest exporter of

Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along
with Aditya Birla Nuvo can be considered as the flagship companies of the AV
Birla Group. Indian Rayon rechristened as Aditya Birla Nuvo Ltd in 2005. It is the
world’s largest producer of Viscose Rayon Fiber with about 40% market share.
Textile and related products contributes to 15% of the group turnover. Given below
are a brief description of the different companies under the umbrella of Aditya
Birla Group involved in Viscose Rayon Fiber, Textiles and Garments.

GRASIM SUITINGS

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Grasim Suiting’s is a major brand in the Rs 2500 core Ready to Stitch market. The
brand which had its existence since 1957 .Grasim is a major player in the Rs 2500
core Ready to Stitch textile segment. The brand lags behind the market leader
Raymond's which holds a market share of about 25- 30 %.Grasim has a strong
presence in fabrics and synthetic yarns through its subsidiary, Grasim Bhiwani
Textiles Limited, and is well known for its branded suitings, Grasim and Graviera,
mainly in the polyester - cellulosic branded menswear. Its textile plants are located
at Bhiwani (Haryana) and Malanpur (Madhya Pradesh). Fabric operations are
centralised at Bhiwani with a processing capacity of 17.0 million metres a year,
while the Malanpur unit manufactures worsted dyed yarn spun from 100 per cent
merino wool along with polyester and other blends.

Grasim's strong nationwide retail network includes 50 exclusive showrooms as

well as 200 wholesalers and 25,000 multi-brand outlets through which it reaches its
customers. Grasim caters to international fashion houses in the USA and UK
supplying fabric to them for manufacturing of garments, which are available in
some of the largest retail chain stores.

MISSION
Mission of Grasim is to capture its no. 1 position in textile market as it use to be in
early 80’s.
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OBJECTIVE

1. The purpose and main focus of the Grasim textile is to give its customers a
good quality suits and

2. To deliver clothing quality.

3. Examples of products in this industry include suitings, shirting’s, trousers

Product

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ICETOUCH.
One of the most successful innovations of Grasim in the past couple of years is
‘ICE TOUCH’. Ice Touch is a pioneer and continues to hold its preeminent
position in moisture management based products in India. This product is well
accepted all over India continues to be the market leader.

This product is based on Japanese technology. Grasim have collaborated to and

innovated its use on Polyester Viscose blended fabrics to adapt this product to the
Indian conditions and the Indian consumer.

The unique properties of ‘ICE TOUCH’ are its instantaneous absorption of water,
spreading of the same over a large surface area and its quick evaporation. When
you sweat the liquid is quickly absorbed by the fabric and evaporated. When this
liquid evaporates it takes heat from the inside of the fabric and thereby giving the
wearer a very cool feeling.

CLEAN FAB
CLEAN FAB is one of the most recent in-house innovations of Grasim Industries.
This is a functional Polyester Viscose blended fabric in which for the first time
dust free and soil free concept has been introduced. This fabric is ideally suited for
the dusty atmosphere and environment prevalent in most parts of the country for
most of the year.

In short CLENFAB is the ultimate product in terms of giving good comfort along
with the soil prevention and easy soil release properties.

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UNCRUSHABLES
Uncrushables is a low crush fabric, first winter poly-wool fabric with anti-
wrinkling quality to be launched in the industry.

While no fabric is ever 100% wrinkle free, Uncrushables is far superior to other
competitive products with better crease recovery. The fabric is easy to wash and
care of. Meant for the hard and rugged life indoors or outdoors, it is available in 15
colors.

FINESSE – Fine Fabric for Fine People

One of the most comfortable trousers made out of fine yarn. The fabric has a finer
count which lends itself to luxurious feel and handle. It is ideal for night wear,
party wear and outdoors.

Finesse is very easy to maintain and can be washed easily and carries a very
elegant shape and drape all day long.

BRAND POSITION

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Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the minds of the target market. The goal is to locate the brand
in the minds of consumers to maximize the potential benefit to the firm. A good
brand positioning helps guide marketing strategy by clarifying the brand’s essence,
what goals it helps the consumer achieve, and how it does so in a unique way.

The brand was earlier positioned as a Modern Fashion Brand. The positioning was
reinforced by a series of new fiber launches. The collections like Aqua Soft, Ice
Touch etc kept the brand in the limelight. The brand used the tagline “Power of
Fashion" to convey the positioning.
Now the brand has changed its positioning. Grasim has roped in the Bollywood
Super hero Akshay Kumar as the brand ambassador. The tagline has been changed
to “For the Self Made". The TVC featuring the actor is now on air.
The repositioning is very significant for the brand because of the nature of
competition that it faces. The competition is not only from the textile brands but
also from the Ready-mades. Every day we have new brands cropping up. In the
brand competition, brands like Mayur, Reid and Taylor, Raymond's have stepped
up their campaigns.

Grasim wanted itself to be relevant and hence this attempt. The brand now has
changed its personality from a Fashionable brand to an Ambitious Brand.
According to a report in Agencyfaqs, the brand has broadened its TG to include the
rural and small town markets where the Ready to Stitch wears are still popular. The
new TG is 35 + male from smaller towns that are informed, fashion conscious and
ambitious. In that way the choice of the brand ambassador is apt. Akshay is known
for his humble beginnings and his struggle in life as a cook, a martial arts trainer
and then to stardom. Hence the brand ambassador and the new positioning has
many things to share.

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The new TVC also tries to relate the life of the actor and the brand. Impressive
thought. The brand has now adopted the mainstay marketing philosophy of most of
the readymade brands now existing in the market.

Get a star to endorse it. In that way Grasim has forced itself to move to the
popular road (easy one). The brand is expected to spend around 7- 8 core on this
exercise. Remember that Grasim has become popular on the strength of the
innovations in fabric rather than emphasis on promotions. Grasim was perceived
to be an up market elite brand. The brand was also sold at a premium. In fact this
is a brand that has used EVENTS to promote itself as an up market fashionable
brand. Grasim was the brand that came out with the first Mr. India contest which
is running in its 12th Year. When it was launched, the contest evoked lot of PR
and media attention which in turn benefited the brand.

QUESTIONNAIRE

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1. Importance of media in maintaining Brand Pull.

Total Sample - 21

20

15

10

0
T.V. channels Newspaper Anyfriends& relatives

From the Above diagrammatic interpretation we can analyzed that:-

Findings- T.V. channels are considered as an appropriate advertising medium by a

portion of those people who are familiar with the ads in T.V channels, visual
effects leaves an impression of brand awareness even to those individual who are
bit unfamiliar with the brand focus and performances. Visual display are most
important in maintaining brand loyalty towards consumer’s associated with the
brand.

Analysis- Responses lend support to the theory that not all advertising campaigns
are appropriately delivered by a single medium or the same medium every time.
Advertisement need to keep their options open. And they need information and
understanding of how each medium works best to make the right decision.

2. Determination of contributing factors responsible for the sale of GRASIM

SUITINGS product.
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 Total sample size - 47

Findings- From the above representation it’s been cleared that quality & price are
the 2 contributing factors from the customer’s point of view.

Analysis- The individuals, opting for brand purchase always are looking for the
contributing factors to purchase the brand products. Although as per the
competition in the market of different brands each and every brand wants to come
up with more satisfaction in all the above mentioned areas, but still when the
consumers are asked for their opinion they became specific about it.

3. Analyzing the demand for the products of GRASIM SUITINGS.

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Findings- Keeping in mind the scenario of brand products the demand for the
products is as follows.

A. Out of 100% -

37% of the consumers opted for Ice Touch. Reason- Its instantaneous absorption of
water, spreading of the same over a large surface area and its quick evaporation

B. Remaining 67%-

33% opted for Clean Fabrics. Reasons are CLENFAB is the ultimate product in
terms of giving good comfort along with the soil prevention and easy soil release
properties.

Reason- Its instantaneous absorption of water, spreading of the same over a large
surface area and its quick evaporation

11% opted for Finesse. Reason- Finesse is very easy to maintain and can be
washed easily and carries a very elegant shape and drape all day long.

19% opted for Uncrushables. Reason- Uncrushables is a low crush fabric, first
winter poly-wool fabric with anti-wrinkling quality to be launched in the industry.

4. Consumers Frequency in purchasing Grasim products

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 (Total sample-40)

Findings;-

1. From the above representation of data 57% of customer said that they are
satisfied with the Brand and for 1-3 yrs they are using the products of GRASIM
SUITINGS.

2. 25% of the customers are newly introduced to the brand and their feedback is
satisfactory with GRASIM SUITINGS.

3. But there are some percentage ratings where 13% and 5% of customers are
related with GRASIM SUITINGS for 3-5 yrs and 5-9 yrs. The reason for such is
the entrance of new brand in the market and in this brand fight the chance of losing
targeted customer may arises.

5. Analyzing the customers’ satisfaction level with GRASIM SUITINGS.

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 The analysis was done based on a parameter like (Very satisfied,
somewhat satisfied, somewhat dissatisfied and Very dissatisfied). And the
customers opinion on these parameters are as follows;-

Findings

1. From this above analysis it is being cleared that 42% of the customers said that
they are Very satisfied with GRASIM SUITINGS, according to them keeping
aside the negative aspects they are getting every sorts of satisfaction with the
utilization of the products and the collection reflects the other side of the
personality.

2. 55% person expressed that they are somewhat satisfied with the products of
GRASIM SUITINGS; means they want more to come up with their satisfaction
level the field can be quality, colors, fittings, etc.

6. Demand for other brands than comparing to GRASIM SUITINGS.

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 Total Sample-42

The Reason and Analysis behind is the domestic Menswear industry seems to be
grappling with questions such as define a young executive, what prompts their
purchase and what are the driving factors’. We know it’s not a large segment, but
it’s still very important as these young executives set the trends that become
aspiration for the others. We also know they are not only big spenders as they have
large disposable incomes but they are also large adaptors of fashion. Drivers of
purchase could be not just fashion, comfort, price and so on, but the more
intangible drivers of brand selection for instance, status, youth icon or relationship.
The ‘aspiration factor’ – the most important in apparel purchase decisions – holds
good for young executives as well. It is natural that executives would like to
emulate their boss or chief in what the. Wear as in many other cases, the need to be
recognized for what one is wearing is high. What about brand values for the young
executives? ‘The idiom of the times’ is one way to describe the Brand values that
one needs to focus on for this set. This would cover a whole gamut of stuff –
attitude to life, money and sex, the definition of success, who their icons are and,
therefore, what defines achievement. Any brand that is targeted at young
executives would be well advised to research what drives this young, aggressive
set. The brand values and even the marketing efforts would need to follow from
this research.

SWOT ANALISYS

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 Strength Weakness

Threat Opportunity

SWOT Analysis company profile is the essential source for top-level company data
and information. Grasim Industries Limited - SWOT Analysis examines the
company’s key business structure and operations, history and products, and
provides summary analysis of its key revenue lines and strategy.

Strengths:-

1. Established Family Brand.

2. Strong Global Corporate Brand.

3. Specialization in marketing and distribution in Urban market

4. Pioneer and Leader so 1st mover advantage in textile industries.

5. Grasim symbolization of warm, family & shelter.

6. Benefits from a large pool of skilled workers and component technical and
managerial personnel.

Weakness:-

1. Low rural market presence constraints.

2. Depends heavily on domestically produced cotton

3. Variety and designs are challenged by the rivals

Opportunity:-

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 1. India is the 2nd largest textile producer (after china), and capable of
producing wide variety of textiles.

2. Continuous stress on operational excellence, cost optimization measures,

strategic planning.

3. High brand awareness of Indian consumers.

4. Newly design garments are launched which increase the sale.

Threats:-

1. Lots of competitors are seen in the market.

2. Large numbers of small independent unit are newly found in the textile
sector.

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ANALYSIS ON GRASIM SUITINGS BASED ON BCG MATRIX

The Boston Consulting Group developed the business portfolio matrix.

BUSINESS HIGH STARS QUESTION MARKS

GROWTH

RATE
CASH COWS DOGS
LOW

STRONG WEAK

RELATIVE COMPETITIVE POSITION

(MARKET SHARE)

The above figure shows the linkages between the growth rate of the business and
the relative competitive position of the firm, identified by the market share.
Business in the “question marks” quadrant, with a weak market share and a high
growth rate, usually requires cash investment so that they can become “stars”, the
business in the high growth, strongly competitive position. These kinds of
businesses have opportunities for growth and profit. The “cash cows”, with a
strong competitive position and a low growth rate, are usually well established in
the market, and such enterprises are in a position to make their products at low
costs. Therefore, their products provide the cash needed for their operation. The

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“dogs” are businesses with a low growth rate and a weak market share. These
businesses are usually not profitable and generally should be disposed of.

When we put “GRASIM SUITINGS” in BCG matrix, the brand falls in the
“QUESTION MARK” category. This is because its business is in the high-
growth, but its market share is gradually going down.

CONCLUSION

The analysis and interpretation of the data revealed that “Grasim Suiting” is
still hold the good position in market in the garments industry. Though it is
facing stiff competition from other brands, still it is managing to grow at a
steady rate mainly due to their innovative marketing techniques and
understanding the needs and tastes of Indian consumers.

But Grasim suiting needs to catch up with its competitors specially in

design segment where Grasim suiting is still not yet doing well and to
gather more profit..

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 Questionnaire
1. Please state where you first heard about GRASIM SUITINGS.

a. T.V. channels b. Newspaper add

c. Internet d. Any friends & relatives

e. Other (specify): ____________________________________

2. Which one of these reasons made you purchase GRASIM SUITINGS product?

a. Quality b. Style

c. Colors d. Design

e. Fits f. Price

3. How long have you been the customer of GRASIM SUITINGS?

a. Less than one year b. 1- 3years

c. 3- 5 years d. 5- 9 years

e. More than 10 years

4. How satisfied are you with the GRASIM SUITINGS products?

a. Very Satisfied b. Somewhat Satisfied

c. Somewhat Dissatisfied d. Very Dissatisfied

5. Which of the following Brand you would like to purchase apart from Grasim suiting?

a. VIMAL SUITINGS b. RAYMONDS

c. REID &TAYLOR d. JCT FABRICS

e. Others (specify) ___________________________________

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 6. Would you like to give any suggestion regarding the improvement of brand performance
towards satisfaction?

a. Yes b. No

(If yes then Specify)_____________________________________________

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