Brand Extension Analysis of Wills Lifestyle into Indian retailing space.

1. 1
WILLS
From
Cigarettes
To
Lifestyle

2. ITC – The Company
One of India’s most Admired and Valuable company
-Market Capitalization: over US $ 40 Bilion
A USD 8 billion enterprise by Revenue
- ~58% of Net Revenue from non-Cigarette segments
Leading Fast Moving Consumer Goods marketer in India
- Established several world class brands in the last 10 years
The only Indian company to feature consistently amongst the
Top 10 global FMCG companies
Only Indian FMCG company to feature in Forbes 2000 List
2

3. ITC’sBusinessPortfolio
3

4. ITC’sBrandsforIndian
Consumers
4

5. Source: Audited Financial Results, ended 31st March 2015,
http://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterly-results.aspx
41%
21%
3%
19%
12%
4%
Segment Revenue
FMCG - Cigarettes
FMCG - Others
Hotels
Agribusiness
Paperboards, Paper & Packaging
Others
ITC Category Wise Segmentation
• Generates 80-85% of ITC’s profit
Cigarette FMCG Business
• Lowering its losses every year and it is
expected to breakeven in 2014-15. The
segment's losses declined from Rs
195.49 crore in 2011-12 to Rs 81.26
crore in 2012-13
Non-Cigarette FMCG Business
5

6. Wills – ITC’s Cigarettes Business
ITC is the market leader in cigarettes in
India
The Wills brand is estimated to be worth
Rs 1,500 crore and is second only to Gold
Flake, also owned by ITC, which is valued
at nearly Rs 2,500 crore
Segment-wise Gross Revenue of FMCG-
Cigarettes is 41%
Cigarettes still generate 80-85% of ITC’s
profit
ITC’s cigarette sales by volume were
estimated to have shrunk 9% year-on-year
6

7. Wills Lifestyle – ITC’s Lifestyle Retailing
ITC's share is not more than 4% in the
apparel retail
Top-of-the-line garments Wills Lifestyle plus
John Players -- contributes a little over 2 per
cent of ITC's FMCG business
Segment-wise Gross Revenue of FMCG-non
Cigarettes is 21% . Wills Lifestyle contributes
60% to ITC's lifestyle retail revenue
Wills Lifestyle contributes almost 80% to
ITC's lifestyle profits
Increasing average billing value by 15-20%
year-on-year with a more premium mix
7

8. Why Brand Diversification?
8

9. Brand Diversification
High incidence of taxation and a discriminatory regulatory regime on cigarettes in India
The share of legal cigarettes in overall tobacco consumption has progressively declined
from 21% in 1981-82 to below 12% in 2014-15 even as overall tobacco consumption has
increased in India
The declining sales of cigarettes, the proposed ban on advertising (Prohibition of
Advertisement and Regulation Bill 2001), the increasing anti-tobacco campaigns and the
experience in developed countries seemed to suggest that tobacco would no longer be a
profitable business in the future
ITC decided to diversify into non tobacco businesses
ITC's diversification, especially into areas such as branded garments, aimed at improving its
brand image, which, in turn, may help it grow its core business
The lifestyle retailing business grew revenue by 20% in 2013-14. The premium-end of the
market which was earlier only 5 per cent has grown to about 10-15 per cent of the whole
market share
9

10. Indian Apparel Retail
- Category Growth
10
India apparel retail industry value:
$ billion, 2010–14
Source: Marketline

11. 11
India apparel retail industry value forecast:
$ billion, 2014–19
SOU
Indian Apparel Retail
– Growth Forecast
Source: Marketline

12. WILLS LIFESTYLE
In 2000, ITC entered the lifestyle retailing
space with the launch of Wills Lifestyle.
Wills Lifestyle has established a nationwide
presence with upmarket product range
available in exclusive 104 Wills Lifestyle stores
across 44 cities and more than 500 ‘shop-in-
shops’ in leading departmental stores and
multi-brand outlets
Brand Value: Elegance, Sophistication and
Exclusivity
Imagery: International premium quality and
vitality
Tagline: Enjoy the Change
12

13. WILLS LIFESTYLE
Mission:
To be a one-stop, global solution provider for lifestyle
and become synonymous with “Quality Lifestyle across
the Globe”
Vision:
To create a fashion wardrobe that complements every
facet of your personality at work, party and a special
occasion called “LIFE”
13

14. Timeline
14
Entry into Lifestyle
Retailing space –
2000
Wills Sport - 2000
Brand extensions
Wills Classic - 2002
Wills Clublife - 2003
Wills Signature
2006
Wills personal care
segment - 2005
Title partner of
the country's most
premier fashion
event – 2006
Preferred Brand for
rich & famous -
2009

15. 15

16. 16
2000
Racy stripes,
Energetic prints
and Trendy
dobbies
2002
New age work
wear, trendy,
innovative, chic
and stylish;
Rreflects the work
ethos of gen next
2003
Sensuous satin
and sequins
embellished on
jacquards and
alluring prints
2006
a tribute to the
evolved
consumer’s fashion
sensibilities;
Created by the
leading stylists
Relaxed Wear Formal Wear Evening Wear Designer Wear
Product Price Place Promotion

17. 17
Product Price Place Promotion

18. Wills Lifestyle is considered as a brand that is at the forefront of fashion
It positioned itself in the premium category
In 2007 it was named amongst the Top Luxury Brands of India by Time
magazine
It is able to charge a premium from its customers
The Pricing of WILLS LIFESTLE Products is High
e.g. Men’s Shirts : Rs. 1500 – Rs. 5000
18
Product Price Place Promotion

19. 19
Product Price Place Promotion

20. Exclusive 104 Wills Lifestyle stores across 44 cities
More than 500 ‘shop-in-shops’ in leading departmental stores and multi-
brand outlets
The online stores (The chunk of online customers is very small,
approximately only 5 per cent of the whole)
Coming up of more exclusive stores in the emerging premium mall & high
street catchments
Plans to scale up its retail presence by expanding the footprint in smaller
markets through the franchising model
20
Product Price Place Promotion

21. 21
Product Price Place Promotion
Online
Store

22. 22
Product Price Place Promotion
Association with country’s
most exclusive & prestigious
fashion event
WILLS LIFESTYLE
INDIA FASHION WEEK
1

23. 23
Product Price Place Promotion
Loyalty Programme
CLUB WILLS
2

24. 24
Product Price Place Promotion
In 2008, developed a campaign voicing the thought
'The World Wants to be You'
The intent has been to take
consumer interest in the
brand to a new high
https://www.youtube.com/watch?v=qXXtpdKugos
3

25. The World Wants to be You
25

26. 26
Product Price Place Promotion
Tie-ups with leading stylists of the country:
Anamika Khanna, Ashish Soni, Manish Malhotra, Manish Arora
and Shantanu-Nikhil
4

27. 27
Product Price Place Promotion
Seasonal Discounts &
Redeemable coupons
5

28. 28
Brand Positioning

29. Market Segmentation
29
Geographic
Segmentation
Demographic
Segmentation
Behavioral
Segmentation
Psychographic
Segmentation
Market
Segmentation

30. Target Group
• Fashion-conscious people
• Class I cities
• Professionals (studying/working)
• Both Men and Women
• Age: 20 - 34 years
30

31. Competitors
It is a mélange
of comfort,
perfection and
elegance.
A global brand, and
one of the best
known in the world,
United Colors of
Benetton has an
international style
that combines color,
quality and fashion.
The brand
epitomizes
classic
American style
and effortless
cool.
31

32. Competitive Frame of Reference
32

33. POPs & PODs
POPs
• High Quality/
Comfortable to wear
• Fashion Space
• Premium Pricing
PODs
• Association with
country’s most exclusive
& prestigious fashion
event
• Tie-ups with leading
stylists
• Unique fabrics
• The chain of exclusive
stores
• No Mass Media
Advertising
33

34. Perceptual Map
34
Fast-Fashion
Style (Time Less Fashion)
Prestige PriceAffordability

35. Brand Positioning
“ITC's Wills Lifestyle presents a complete
fashion wardrobe that complements every
facet of your personality at work, when you
are relaxed, while you party and for those
special occasions.”
35

36. Brand Appearance
RED – “ red carpet treatment “ &
“paint the town red”
(VIP, celebrities or high profile person
& celebration, partying, fun &
excitement)
WHITE – “Peace, Perfection &
Sophistication”
36

37. Brand Personality
Synonymous with elegance and style that is effortless and chic, Wills
Lifestyle presents a premium fashion wardrobe for men and women.
37
Thus, Wills
Lifestyle has
adopted
Sophistication
as its Brand
Personality

38. Brand Resonance Model
38

39. Brand Resonance Model
39
• International
Premium Quality
• Vitality
• Superior consumer
value
• Global Standards • Fashion
• High-end Lifestyle
• Premium clothing
• Inspiration
• Self-expression
• Quality
• Superiority
• Emulation
Wills Lifestyle users are
o Stand outs from the crowd
o Objects of everyone's envy

40. Conclusion
All of this has led to:
• Creating a distinctive identity in the premium western
wear market
• "The Most Admired Women's wear Brand of the Year“
• “The Most Admired Exclusive Retail Chain of the Year“
• "Most Admired Fashion Brand of the Year - Fashion
Forward“
• “The Most Admired Exclusive Brand Retail Chain of the
Year”
– Wills Lifestyle
40

41. References
1. ITC Corporate Presentation, Available at:http://www.itcportal.com/about-itc/shareholder-
value/ITC-Corporate-Presentation.pdf(Accessed: June 29, 2015)
2. ITC: Building World-Class Indian Brands, Available
at:http://www.itcportal.com/businesses/pdf/brand-booklet.pdf (Accessed: June 29, 2015)
3. (March, 2015) Retail Industry in India, Available at: http://www.ibef.org/industry/retail-
india.aspx (Accessed: June 30, 2015)
4. Database, Available at: http://advantage.marketline.com/ (Accessed: July 9, 2015)
5. Database, Available at: http://www.portal.euromonitor.com/portal/ (Accessed: August 22,
2015)
6. Wills Lifestyle, Available at:
http://www.superbrandsindia.com/images/brand_pdf/consumer_3rd_edition/Wills%20Lifestyle.
pdf (Accessed: June 30, 2015)
41

42. References
7. T R Vivek (2004) 'Tobacco ban forces ITC to stub Wills', Business Standard, 21st July
8. Manish Basu (2015) 'ITC to raise prices of all its key cigarette brands', Live Mint, 13th March
9. NAMRATA ANAND, VANDANA KHETARPAL, (2014) 'GROWTH OF APPAREL INDUSTRY IN
INDIA: PRESENT AND FUTURE ASPECTS ', , II(I)
10. Sreeradha D Basu (2010) ''We try to make fashion more accessible'', The EconomicTimes,
21stA April
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43. Acknowledgement
43
The Brand Analysis is done under the able guidance and support of
Dr. Sameer Mathur, Ph.D.
Carnegie Mellon University
Marketing Professor (IIM Lucknow)
http://www.BuddingMarkets.com
By: Mehak Jindal | PGP30380 | IIM Lucknow
Brand Management Course

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