"The decision to launch a new brand, Feever, was Leghorn's biggest mistake. The price-band expansion should be restricted to Leghorn " Narinder Singh, Managing Director, Hi-Fashion Clothing

Clearly, leghorn's brand strategy has gone a little awry. Earlier, the problem as identified in the case game was one of fashion not favouring denim, and later, of competitive market conditions. Together, they seem to be giving the jeans maker a few headaches. One can't help feeling that Leghorn has suffered from some bad luck, as well. Just as the American company was coming to terms with the unique dynamics of the Indian market in the late-1990s, denim went out of fashion. By the time denim made a comeback, a host of quality Indian brands had entered the arena to challenge its position.

The decision to launch a new sub-brand, Feever, targeting the teen segment with a pair of jeans in the Rs 800-899 price range, was perhaps the company's biggest mistake, though. Let's examine why. While the company as a whole will probably benefit in terms of profitability from this move, the question that arises is: how will it assist the flagship brand? Given the rich heritage that the brand brings with it, Leghorn would have done well to restrict its price-band expansion to the original flagship brand, without seeking to create a new franchise (if that is the idea of launching Feever as a stand-apart brand for young price-conscious buyers).

The company could meet its objective of making its products more accessible to the price-conscious consumer equally well by dropping the introductory price of Leghorn jeans below the psychological Rs 1,000 barrier. The company has done well to cut down costs over the years by indigenising the supplier network and streamlining manufacturing processes. With increased margins, Leghorn should comfortably be able to afford pulling down the starting price of its jeans.

Santosh Gupta, the managing director, is absolutely right when he says that Leghorn has stayed on top for way too long. The Indian denim market has evolved significantly in the last decade, and if it wants to stay in the race, Leghorn will need to transform itself accordingly. Bringing out a pair of jeans targeted specifically at the brand-conscious college-goer at, say, Rs 900 a pair, will automatically attract the largest jeans-buying segment in the country, making Leghorn's target of acquiring a critical mass of one million pieces an easy proposition. And once a teenager starts identifying with the brand image (this could happen over time), you've got him for life. He might not be able to afford the more expensive range at the moment, but he'll always aspire to climb the price ladder, and once he starts earning, he moves to the premium range.

Dropping the price, or even offering discounts, doesn't necessarily mean compromising on the premium image, so long as the company can maintain high quality standards in its marketing and distribution approach. The Indian consumer is not only well-informed, unlike his Western counterpart, he is extremely value conscious as well. He knows exactly what he wants, and is out there to get the lowest price for his desired quality standards. Leghorn should consider expanding its distribution network through the store-in-store option to enhance its coverage.

As for the advertising, international campaigns are its premium strength, and they should be continued. In fact, most prominent Indian brands today are also trying to internationalise their advertising.

"Leghorn should aim at cornering a higher value share by following a 'controlled expansion' strategy without bothering too much about the volume marketshare" Hyma B., Business Head, Arvind Brands

Leghorn is facing the classic dilemma-how to increase volumes while keeping the premium brand image intact. The key question to ask is: Should a premium brand chase volumes or value? Leghorn should aim at cornering a higher value share and not bother too much about marketshare in volume terms. However, the need for critical mass still exists, and that can be achieved via 'controlled expansion'.

Leghorn should re-evaluate its pricing strategy. While there is no doubt that the brand has to be kept premium, there is too wide a gap between Leghorn's prices and those of other high-priced brands.

The company has done well by launching a separate collection to close this gap. This collection, aimed at making the brand more accessible to the younger consumers-college-going teenagers-who aspire for the brand but currently find it out of their reach, could go for the much-desired volumes. But the trick is in the execution of this dual price-band strategy. Any mis-steps here could injure the overall brand's prestige, and that is the core of the challenge Leghorn faces. Care needs to be taken to ensure that Feever's starting price is still kept above the highest-priced Indian brands. This is one way to retain the aspirational status that a cult brand needs to maintain, even if it is trying to reach out wider and gain greater volumes.

Merchandising is also critical-any collection that becomes the benchmark for fashion will help the brand as a whole maintain its high ground. So a lower priced college collection can do well for the company, provided the target collegian attaches the same prestige to it as he would to the premium collection when he's older and earning well. It is also important that the entire line reflects the same brand attitude.

While the needs of business will put pressures in terms of expanding distribution, it is important to select the channel that is in sync with the brand image. In addition to focusing on exclusive stores, premium end large format chains should be the way to go. The key is to maintain a consistent retail experience-even for the lower-priced collections-without any compromise.

As for advertising, Leghorn should stick to the current strategy of international advertising, combined with building connectivity with the audience through selectively bringing in the local idiom wherever required. I think the move to indigenise is a key element in making the brand profitable. All in all, Leghorn should go in for a strategy of 'controlled expansion' while making sure it avoids the pitfalls involved.

"The middle income category, which accounts for a majority of the consumers, will go for price and quality and is not conscious of brand image" Satish Mahajan, Chairman (Southern Region), Clothing Manufacturers Association of India

There is a problem of brand against price, and in the bargain, will the consumer remain loyal to the brand or will she go for price? Market dictates in a recession mean that the middle and lower middle income category of consumers-reaching whom is critical to any volumes-begetting strategy in India-will go for price and quality, typically, and not brand image. The brand, when seen from this consumer's perspective, is simply a label that need not be displayed on the garment when it comes to showing off what one is wearing. But yes, quality and value will be the winner even when it comes to market volumes. Indian consumers who may not be very brand-aware are nonetheless becoming conscious of the actual quality of the product as represented in its physical characteristics (a pair of jeans must, above all, be durable under extended-wear conditions, not to mention comfortable and well-fitting). What about brand image and the like? That's fine with an upper-end class of consumers, a small percentage of India's consumer base, who want their brand to act as a signal of who they are. There are also many jeans-buyers who intend their brands to be statements of the money they can afford to pay for their clothing. This is the reality of the Indian market that brand advocates tend to ignore. This is also a reality that foreign brands, that operate at the upper end of the market, are slowly adapting to, and Leghorn's travails are a reflection of this adjustment to reality. Achieving volumes requires a company to reach out to value-for-money consumers who don't have the inclination or the money to chase a brand, or pay for label display. On current trends, this could start happening slowly at the upper end of the market too. Even well-aware and wealthy consumers are looking through the labels, and making apparel choices purely on physical attributes such as basic cloth quality, style and fit. Yes, they do like a brand that has built itself an image, but that is secondary.

That said, the Indian market is growing steadily, and the potential is vast not only in the metropolitan towns but also in far off semi-urban populated areas. This means we need to produce good quality merchandise at a price that is affordable to the segment of the market that can spell volumes. This is how major discount retail chains the world over have grown (on volumes), although they had no image to start with.

A brand can thus survive against good-quality unbranded players in the market only if it consistently outperforms them on the said product attributes, and conveys this effectively to prospective buyers.

The emphasis on brand imagery is, by and large, misplaced, given the realities of the Indian mass marketplace. Just developing a brand without catering to the market's mundane dictates will not get Leghorn the large volumes it so desires. The Indian market has vast potential, but not for brands that want to sell as brands, but for affordable products.