As per one of the Oracle documentation, in this method of installation we don't need to make any configuratoins/definitions using the zonecfg command. As this binary file will perform all such configurations.
The ip address provided with the option -a (i.e. -a xxx.xxx.xxx.xxx) is not a valid address. It is very likely the reason why the zone's Solaris image cannot get configured and never completes its boot. Provide an ip address such as 192.168.10.10. Also, when a zone do not completes its boot you may get more info on what's going on by connecting to the zone's console with 'zlogin -C zonename' from the global-zone.
Sorry, please ignore my previous message about the wrong ip address (I assume you entered a valid ip address).
The problem you are facing is related to the defaultrouter, and I assume you are running Solaris 11 update 1.
If so, to workaround the problem for the time being you may edit the /etc/defaultrouter file in the global-zone and enter the ip address of the default router (you can remove this change when the template deployment is completed).
If you have no idea about the default router ip address, just rename /etc/defaultrouter (e.g. to /etc/defaultrouter.orig) so that it cannot be found by the template. Again, you can undo the change when deployment is complete.
The solution of renaming the file got worked for me and I am able to successfully install the Solaris 10 Branded zone on Solaris 11.1 server.
Thanks a lot!! and appreciate your timely help