CHAPTER 1
INTRODUCTION
This chapter will provide an introductory overview of the thesis. It will start with a brief background of the phenomena, and then move into a problematization which will lead to the purpose and research question of the thesis. Finally, this chapter will end with an outline of the thesis.
1.1. Background
The American Marketing Association (2013) defines marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” According to Kotler (1980), Marketing is “Satisfying needs and wants through an exchange process”.In,The Wealth of Nation, Adam Smith first discusses the marketing concept which state that an organization, in order to achieve them in such a way, that the organisation’s offerings are better than its competing organization’s offerings to the consumer. The process of marketing is based around bringing a product to a market and various steps that need to be taken in order to do so. Some of these steps are: market research, targeting and segmentation of the market; determining distributing channels, pricing and promotional strategies, developing a communication strategy; budgeting: and envisioning long term market development goals etc.
Brand Equity is the value added by the brand to the product.The real power of a brand is in the thoughts, feelings, images, beliefs, attitudes, experiences and so on that exist in the minds of consumers. This brand knowledge affects how consumers respond to products, prices, communications, channels and other marketing activity, increasing or decreasing brand value in the process (Kapferer 2008; Keller 2009).
Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent.
Premium branding really means that consumers are willing to make tradeoffs to experience the brand. For example, a clothing brand may be considered ‘premium’ because its products are better quality, or because they are made from ethically-sourced fabric, using socially aware production processes.
Customers build the brand equity of a socially responsible company by enhancing its future profits and goodwill. Therefore, corporate social responsibility activities are modes for companies to increase their reputation, and thus affecting the brand equity as a result.The out of control spread of the COVID-19 pandemic has exceeded all of the expectancies. It become only on March 11th that the sector health organisation declared the illnesses as a virulent disease ―a virus is the global unfold of a new sickness (World Health Organization, 2010). On that day there had been 126,214 instances worldwide, nowadays on the 1st of June 2020, the global cases have reached 6,315,824 with over than 374 thousand nowadays on the 7th june, 2021, the global cases have reached 17.3 crore human beings died due to the disorder. the majority of humans have become inflamed in a quick time frame that is restless nations, as a result they may not be able to offer the wished fitness take care of the loads or maintaining the economic wheel functioning and keeping it and the society.
The impact of crisis Premium industry in India’s Premium fashion goods market is worth $7,956 million in 2020 (after adjusting for potential covid-19 losses) and is projected to grow annually by 10.6% CAGR between 2020-23. As per a report by Statista, revenue in the luxury goods market amounts to $9.09 billion in 2020. The Indian Luxury Industry has been on a growth path. Growing consistently at a pace of 20-25% PA for past several years, it was projected to touch $180 billion by 2025. This chapter further discusses the relevance of the study, the purpose of the study as well as the conceptual framework applied in the study and finally the objectives of the study.
1.2. Problematization
Currently, many markets are in a function of uncertainty. COVID-19 has affected the world each economically and socially. Searching specifically at the economic impact there has been an effect on demand.
Retail consumption conduct have changed within the wake of the pandemic.There was a boom in purchases of crisis goods such as brand masks and
Excessive best fabric of end up a preference customer in brand. Iconic having 80% multinational brand and 20% of Iconic brand called “I Brand”.
In context of crisis the problem. GAP, Levi’s, Armani, Coverstory brand are no more sustain in Iconic premium retail.
Client trust the multinational brands. But due to pandemic impact on GAP, Levi’s, Armani, Coverstory in the line of moving from Iconic.
People can’t available to recognize the “I brand” of iconic that is Zoella, Rooted and Elle woman’s wear.
The “I brand” prices are so high and clients buy multinational brands over this brand because of best quality with low price compare to “I brand”. Newly launch “Elle” not getting good response due to not fitting in Indian body type.
The “I brand” major issue is high price and measurement Fitting.
All this causes low sales in usual days and now in pandemic its become more different to give performance in front of strong brand image’s of multinational premium brands. Additionally, Due to low supply chain still multinational brand always in the race of trend and colour in wall display, product placement, visual merchandising so, premium client fill refreshment and new. Whereas, Iconic home brand have limited stock old stock. All this problem occurs due to lack planning. “The competition of in store with multinational brands” and “i brands”. The competitor are “Shoppers Stop” and “Will lifestyle” of iconic.In the context of pandemic, the Iconic Fashion retail facing so many problem’s. Currently, many markets are in a function of uncertainty. COVID-19 has affected the world each economically and socially. Searching specifically at the economic impact there has been an effect on demand. The marketer are not prepared for pandemic. All studies were conducted in a normal market or in a non-crisis context. Lastly, while the COVID-19 pandemic have elements similar to a financial crisis, utilising a Iconic fashion brand retail perspective allows a large focus on the non-financial aspects as their approach has limited the economic impact of the pandemic.
In pandemic, Iconic fashion doesn’t understand have empirical data to understand the consumer needs and consumer behaviour. So, it is difficult to increase performance of iconic during in a pandemic.
1.3. Purpose of the Study
Based on the Literature Review (Refer to Ch.2, Pg.), it has been highlighted that there have been several studies conducted on Consumer behaviour, buying behaviour, brand Positioning, Brand Equality. However, hardly any studies have been conducted on Iconic India, except for a few newspaper articles. So it becomes pertinent to carry out a study on Iconic Fashion in India to have an in depth understanding Iconic Premium business at large. The present world is crippled with the pandemic coronavirus (Covid-19). The pandemic that makes every country in the world in an unprecedented situation that has social and economic impacts. This paper aims to explore pandemics have any impact on con patterns among premium brand consumers in India. Taking pandemic Covid-19 as a case study, it was explored how this pandemic impacted the consumption pattern of premium brand consumers in India; how premium brand consumers’ influenced to made purchase brands and premium brand consumers’ that are found in their consumption habits in the wake of Covid-19 pandemic.Since it is a topic lacking in empirical research.
The secondary purpose of this thesis is to produce data which can be used by managers to manage effectively during a pandemic.
1.4. Conceptual Framework
This thesis is divided into six chapters. The first chapter is the introduction which will introduce the topic of the COVID-19 pandemic and brand preferences during crises through background to the phenomenon. Moreover, the introduction chapter will include a problematization highlighting the importance of studying the topic, and subsequently the chapter ends with the purpose of the thesis.
The second chapter is the literature review which will illustrate the previous research within the field of buying behaviour and branding in both a general context and a crisis context The Gaps in literature review. The history of Iconic Fashion Retail and current brand and product range.
The third chapter is the methodology which will argue for the methodological choices of the thesis. Additionally, this chapter will argue for the theoretical and philosophical aspects of research, as well as the empirical methods used. Moreover, the method will also include a section discussing the trustworthiness and ethical responsibilities of the research.
The fourth chapter a Project I is about the competitor anaylsis, which SWOT will discuss the empirical findings of from the premium brand price, quality, currently brand sustaining during crisis. The measure taking action in maintaining the Premium brand.
The fifth chapter Project II is about the data analysis and interpretation, which will discuss the empirical findings of the questionnaire from the perspective of consumer behaviour, brand preference and social media and brand loyalty impact of social media and the luxury influence to buy premium in context of crisis found throughout the questionnaire.
The sixth chapter is the empirical finding and suggestion in the wider context of the field of branding in crises context, and reflect over the findings within the context of the field as a whole.
The seventh and last chapter is conclusion, which will offer a brief summary of the thesis, practical and theoretical implications of the thesis.
CHAPTER 2
LITERATURE REVIEW
This chapter will provide the Literature review with a basic understanding of the previous research and theories within the fields of market role, consumer behaviour, buying behaviour and branding from both a general context and a crisis context and GAP . Moreover, this chapter will end with the theoretical framework which is derived from previous research within the topic of branding in a crisis context.The second section comprises brand story and company profile of Iconic India.
2.1. Role of Marketing
“Principles of Marketing”by Philip Kotler and Gary Armstrong (1996) The papers design and developing of branding is nowadays a part of the constancy duties of the marketing departments in companies. Within highly ambitious industries like the fashion industry, marketing acts joined of the prime mover to draw in and communicate with customers and protrude from the competition. Whereas in good old days, marketing was viewed to easily aim at inducing a procurement, it’s important to know that there are additional intentions created by marketers in present days. Marketing not only allow to create a biased relationship directed by a corporation, but furthermore, the clients must feel a satisfaction for his or her wants or needs reciprocally. Thus, marketing normally may be established as an exchange process between a business and their customer. For this reason, marketers seek to spot and satisfy such needs.
2.2. Customer Behaviour
‘Why do People Shop?’ By Edward Tauber (1972) states even as positive
components of shopping behaviour is connected with buying behaviour and intentions, other personal motives inclusive of diversion, self gratification,studying approximately new trends and physical pastime are not. Moreover, Utilising of consumer behaviour as a place to begin, one has to look at the position of
customer decision making, procedure and behavior.
One early and influential attitude which lays the groundwork for the
traditional view, stating consumer behaviour is inherently rational. He argues there needs to be a distinction between buying, shopping for and consuming.
Shopping is defined because the act of going to a store attempting to find pleasure, and now not immediately with the intentions of buying a product and consuming.
2.2.1 Buying Behaviour
“Consumer choice of store brands across store formats” by Kaswengi & Diallo,(2015) There are numerous elements affecting shopping for behaviour in purchasers. Specializing in shopping for behaviour in retail, components which include keep environment. Beginning with store surroundings discovered engaged
in the pursuit of pleasure environmental issue including ambience and layout had an instantaneous effect on clients‘ advantageous emotional reaction.