Brand Extension Analysis

Park Avenue Grooming Solutions

Nadeem Natrajan, PGP30148,pgp30148@iiml.ac.in, +91-8853216046

Journey from wardrobe solutions..

To also grooming

solutions for men..

Launched in 1986 by

Manufacturer - Raymond• India’s largest branded fabric and fashion

retailers• 2013 Revenue – INR 14.06 billion• Incorporated in 1925• Provides total textile solutions• 11 Group Companies• 4 Joint Ventures

• Raymond introduced Park Avenue to offer men "Complete Wardrobe Dressing Solutions“• Park Avenue launched Women's range in 2007• J. K. Helen Curtis (a Raymond associate) launched Park

Avenue grooming solutions

Today - India's premium lifestyle brand

Stylish and innovative wardrobe solutions to well-dressed gentlemen

Presence in 565+ 'The Raymond Shops‘, 50+ Exclusive Brand Stores, 656+ Multi-Brand Outlets

Brand Philosophy

Corporate meetings now in Café lounges

Business deals are not necessarily

cracked between 9 to

5

To fulfill the growing needs of today’s manLaunch of a fresh chapter with new logo

Eagle representing vision and focus

Industry Perspective

Men's Grooming in India

Men’s grooming saw value growth of 23% to reach INR 46.8 billion in 2013

Expected to grow at a CAGR of 10% at constant 2013 prices to reach INR75.4 billion by 2018

Park Avenue share

Current Portfolio

Competitive Landscape:• Gillette – Market leader with 27% share (2013 data)• HUL – Second with 15% (2013 data)• New brands coming up with similar products – Dabur

at affordable prices• Men’s grooming category still in early stage

The Brand Extension

• Parent Brand – Park Avenue• Category Extension – Grooming Solutions• Products in premium/luxury segment• Use of International fragrances and high focus on R&D• Market Share currently low (2%)• Strategic focus on launching masculine tagged

products - Beer shampoo

Key Brand Values

Exciting

TrustedPremium

Innovative

Smart

Different

Marketing Mix

Product

• Product mix - Soaps, deodorants, aftershave, shaving cream, talcum powder, gels

• Exclusively male grooming products

• Focus on fragrance - Their deodorants and perfumes read-“Genuine French Eau De Parfum”

• French fragrance gives uniqueness to perfumes

• Elegant stylish packaging to give the brand an international look

Price

• Price-wise middle range products

• Loyal customers – less price sensitive

• Many grooming products such as Deodorants are still considered expensive at 180-190 price range

• Park Avenue -> products affordable

Place• Regular distribution outlets, like traditional and modern trade, chemists, cosmetics and general stores

• Soaps and Deodorants available at normal general stores

• Perfumes in supermarkets unlike other big brands which are available only in big shopping malls

• Locations suitable to middle class consumers

• Distribution increased by 50,000 outlets in past year

Promotion• Been a shy brand till yet

• 2 years back – No point of purchase displays, no testers, no digital/social marketing

• Now they are coming up front

• Promotion through print and electronic and social media

• Increase in spending in promotions from last year = 50%

• Introduced 50 ml deodorant SKU to let people try the product

• Ads have moved from ‘English’ to ‘Hinglish’ for mass appeal

Customer SegmentationAge Groups (Demographic)

Behavioral and Psychographic characteristics

14-17 years Influenced by parents, curious and explorative, no loyalty

18-22 years Experimenting group, seek attention, want to be trendy

23-28 years Tend to become loyal towards a particular brand, try expensive variants, status seekers

28 + years High brand loyalty, health conscious, high expenditure

Target Customers - Demographics• Male

• Middle class

• Young (Typically 25+)

• Not on high purchasing power

• Male who likes to explore the unknown, do something different

• Entrepreneurial spirit and wants to be a leader

• Wants to express himself and his style, prove his worth

PsychographicsBehavioral• Long travelling hours

• Short on time

• Living alone

• Men into personal care

• Mostly new customers from small towns

Posi

tionin

g

Park Avenue Positioning• Viewed as Indian brand with product qualities like

western• Indian men used personal care accessories for women• No major grooming brand in men’s market• Male exclusive products• Low price but high quality

• Use its expertise in clothing to project its image of a classy male grooming brand• Positioning tagline in 2000 – Try something new• Latest tag line – Play the lead• Management believes - Seduction is not the only motivation a man has• Park Avenue – Partners the man who seeks success in life – the alpha male

Perceptual Map for ParkAvenueDeodorant

Competition

Competitive frame of reference

Multiple competitive frame of references:• Operates in Men’s Personal care• Product range -> Toiletries and Bath & Shower• Stylish Premium grooming products• Individual products -> Different competitive space

Competitive Space (Deodorants)

POPs

• Range of product class –gels, lotions, deodorants, perfumes, etc.• Price – competing with

many other brands• Product SKUs – Available

for normal and test use• Long lasting fragrance and

overcoming sweat odor

PODs

• Good masculine fragrance (like in soaps)• Large size (again

strengthening its masculine image)• Strong heritage• Premium and classy

feeling• Extensive variety –

product for every mood

Brand LadderCore Value: Confidence,

SuccessEmotional Value : Stylish, Premium,

Classy

Functional Value: Best quality in decent price

Product: Variety of products, Unique fragrance, Elegant packaging

Thanks

Content References:• GMID database• Raymond India – Official website• www.parkavenuegrooming.com• www.jkhc.com/Parkavenue.aspx• Annual Reports, Raymond Group – 2013,2014• http://www.consumerpsychologist.com/cb_Segmentation.html• http://

iims-markathon.blogspot.in/2010/09/park-avenue-brand-extension-strategies.html• http://

www.afaqs.com/interviews/index.html?id=411_Seduction-is-not-the-only-motivation-of-a-man-Raja-Chakraborty-Park-Avenue-Deodorant

• http://marketingpractice.blogspot.in/2014/08/park-avenue-beer-shampoo-cheers-to-man.html

• http://www.mbaskool.com/business-articles/marketing/1169-park-avenue-iq-new-name-in-the-world-of-deodorants.html

• http://www.mindtools.com/pages/article/newSTR_94.htm

Images References:• Slide 1 -

https://www.behance.net/gallery/19209065/PARK-AVENUE-TRADESHOW-SS-15-(-Visual-Merchandising-)&h=401&w=600&tbnid=0iewU8-J6O9EEM:&zoom=1&docid=SJnUdGgVsu5HFM&ei=VueTVYf-HpPGuASy_YPAAg&tbm=isch&ved=0CGQQMygpMCk&biw=1280&bih=554

• Slide 2 - http://i896.photobucket.com/albums/ac167/filippofiora/2015/how-to-preserve-mens-suits-1.jpg~original

• Slide 3 - http://www.thescienceofappearance.com/wp-content/uploads/2013/02/mens-grooming.jpg

• Slide 4 - http://7-themes.com/6941438-cycling-sunrise-art.html, http://www.thetradeboss.com/userfiles/image/Flagship%20store%20launched%20by%20Raymond.png,.adgully.com/park-avenue-fashion-show-forecasts-the-future-of-office-fashion-48548.html

• Slide 7 - http://www.forshowroom.com/property-park-avenue-showroom-876

• Slide 8 - http://www.adgully.com/park-avenue-woman-innovates-retail-format-modernizes-collection-nawaz-singhania-launches-flagship-store-at-grand-galleria-phoenix-mills-mumbai-1034.html

• Slide 10 - http://www.501c3.org/avoiding-conflicts-of-interest/

• Slide 11 - http://www.independent.co.uk/voices/commentators/hamish-mcrae/hamish-mcrae-social-change-is-consigning-the-9to5-office-job-to-the-past-8069910.html

• Slide 12- http://www.aisbrandlab.com/the-eagle-has-landed-india

• Slide 16 - http://www.shopclues.com/park-avenue-mens-grooming-kit-1538485.html

• Slide 19- http://www.dcmarketingpro.com/blog/bid/358470/Choose-the-Best-Marketing-Mix-in-3-Easy-Steps

• Slide 20 - http://gregmaciag.typepad.com/.a/6a00d8345242c469e2017d418d6cb9970c-pi

• Slide 22 - http://houseppd.com/2014/06/18/14-3bn-of-efficiency-savings-good-or-bad-julian-mccrae/

• Slide 23 - http://www.trajectio.fr/wp-content/uploads/2015/04/supermarch%C3%A91.jpg

• Slide 29 - http://3.bp.blogspot.com/-2mnkTWNpJbU/T7j4JW6MsyI/AAAAAAAABJQ/YjcdhxurZ_Y/s1600/Alpha+Male+of+the+day+contest+win+Blackberry+Curve+9220.jpg

Images References: