Marketing full n Final.docx

8/13/2019 Marketing full n Final.docx

http://slidepdf.com/reader/full/marketing-full-n-finaldocx 1/35

gni rPle a tPlFne oPlniF

oli mPGliMPage 1

Table of Contents2…………………………………………………………………………….Proposed Questions for Qualitative Research

11………………………………………………………………………………………………………………………....…Jeans Industry

12……………………………………………………………………………………………………Level of Market Segmentation

17……………………………………………………………………………………………………………………….…Brand Awareness

18……………………………………………………………………………………………………………………………..Business

Plan22………………………………………………………………………………………………………………………………Pest

Analysis

30…………………………………………………………………..………………………………………Strenghts-Swot Analysis

33………………………………………………………………………………..………………….Weakness-Swot Analysis

Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but we

don’t want to confuse the customer about what line of business we are in..................................34

Opportunities - SWOT analysis sample........................................................................................34

Threats..........................................................................................................................................35




oli mPGliMPage 2

Proposed Questions for Qualitative Research

1. Which Pakistani cultural dress you like most or influence you?

Punjabi

Sindhi

Balochi

Pathani

Kashimiri

59%

23%

7%

7%

4% 0%

Which Pakistani cultural dress you like most

or influence you?

PunjabiSindhi

Balochi

Pathani

Kashimiri




oli mPGliMPage 3

2. Do you prefer purchasing jeans?

Online

Traditional brick

Mortar locations

11%

25%

64%

Do you prefer purchasing?

Online

Traditional brick

Mortar locations




oli mPGliMPage 4

3. How would you define premium jeans?

Comfort, Quality

Stitching, Style Fashion, Style symbols

Price, Quality

50%

10%

10%

30%

How would you define premium jeans?

Comfort, Quality Stitching, Style Fashion, Style symbols Price, Quality




oli mPGliMPage 5

4. Which kind of dresses you like most?

Formal

Casual Both

Don't bother

15%

55%

15%

15%

Which kind of dresses you like most?

Formal Casual Both Don't bother




oli mPGliMPage 6

5. What factors determines how much you pay for jeans?

Quality

Price Variety

All of them

69%

4%

13%

14%

What factors determines how much you pay

for jeans?

Quality

Price

Variety

All of them




oli mPGliMPage 7

6. What type of person would most influence you most to buy jeans?

Peers

Celebrities Models

Sports celebrity

10%

40%

30%

20%

What type of person would most influence

you most to buy jeans?

Peers Celebrities Models Sports celebrity




oli mPGliMPage 8

7. What are your perceptions of current clothing advertisements are?

Very Good

Good Neutral

Disagree

35%

25%

30%

10%

What are your perceptions of current

clothing advertisements are?

Very Good Good Neutral Disagree




oli mPGliMPage 9

8. Name a jeans advertisement that is memorable to you?

Levi's

Stoneage

Denim

Outfitters

Calvin Klein

77%

5%

3% 10%5%

Name a jeans advertisement that is

memorable to you?

Levi's Stoneage Denim Outfitters Calvin Klein




oli mPGliMPage 10

9. Current trend?

Need to be change

Not to be change

Need to be change

40%

Not to be change

60%

Current trend?




oli mPGliMPage 11

JEANS INDUSTRY

In order for a new brand to establish itself in its market and for its products to sell

successfully, thus achieving company goals and shareholder profitability, a number of keyprinciples concerning consumer behavior have to be fully grasped and addressed. As well as

producing a range of new, exciting and quality garments, the firm will need to ensure that

its products are cleverly and thoughtfully marketed to the appropriate consumer groups.

The importance of consumer behavior in deriving this strategy. Look at the importance of a

clear and up to date comprehension of the factors that affect consumer behavior, paying

particular attention to the key role that perception will play in forming consumer's attitudes

towards the new range of designer jeans. Continue on to show how favorable perceptions

about brands identity will have a positive effect in raising consumer motivation to purchase

a product from their range.

The fashion industry at this time; a time of increasing disposable incomes and incidence of

recreational shopping, is intensely competitive. We can draw on many examples to highlight

the point that; companies who have established a strong and clear brand image, have

tended to command a larger market share than those companies who's image is either

unfavorable, for example old fashioned, or unattached to specific and clear values.

Establishing a strong and distinguishable brand image for the 'Anti-Fit' range of jeans is the

central idea behind marketing strategy for breaking into the competitive market and

ultimately gaining a favorable share of the market for designer jeans. Creating the right

brand image is largely dependent upon being in tune with the mindsets, beliefs, values and

aspirations of the modern, well-informed consumer. Moreover ensuring that the consumerperceives the firm to be in tune with their way of thinking and holding similar values

centrally to the brand identity will be the key to ensuring marketing success.

The purchase of a pair of designer jeans may be considered neither a high involvement nor

low involvement purchase, where involvement may be thought of as the degree of

perceived relevance and personal importance accompanying brand choice. Potential customers within such a competitive market have a number of factors influencing

their purchasing behavior. Consumer buying is motivated by something more thanawareness; it depends on the consumer's needs and drives, tastes and aspirations,

attitudes, personality and social environment. Products are not only purchased for their

functional values but also, for the social and psychological meanings they convey. The

purchase of a pair of jeans is linked, to what extent is dependent on the individual, to the

formulation and shaping of a consumers self-image. Purchasing a pair of jeans will to some

degree shape a person's self-image and the way others may perceive them. As marketers, a

company must align the consumer's self-perception and the image they intend to project to

others, with the attributes and values they perceive to be attached to the company and its

associated products.




oli mPGliMPage 12

Levels of Market Segmentation

Buyers have unique needs and wants, each buyer is potentially a separate market. Ideally,

then, a seller might design a separate marketing program for each buyer. However,

although some companies attempt to serve buyers individually, many others face larger

numbers of smaller buyers and do not find complete segmentation worthwhile. Instead,

they look for broader classes of buyers who differ in their product needs or buying

responses. In a jeans industry jeans mostly used by youth so all the companies making

segments according to their need and wants.

Mass Marketing

Companies have not always practiced target marketing. In fact, for most of the 1900s, major

consumer products companies held fast to mass marketing—mass producing, mass

distributing, and mass promoting about the same product in about the same way to all

consumers.

The traditional argument for mass marketing is that it creates the largest potential market,

which leads to the lowest costs, which in turn can translate into either lower prices or higher

margins. So that’s why there is lot of potential in jeans industry to grow till maturity. Now

there is a trend which showing that the market will split more till maturity and many other

competitors will come in this industry with a new style and can earn. The jeans industry has

to serve here for working women, students, and having a important role in today’s

modeling. Today, marketers find it very hard to create a single product or program that

appeals to all of these diverse groups.

The proliferation of distribution channels and advertising media has also made it difficult to

practice "one-size-fits-all" marketing. Today's consumers can shop at megamalls,

superstores, or specialty shops; through mail catalogs or virtual stores on the Internet. They

are bombarded with messages delivered via media ranging from old standards such as

television, radio, magazines, newspapers, and telephone to newcomers like the Internet,

social networking and e-mail.

Segment Marketing

A company that practices segment marketing isolates broad segments that make upa market and adapts its offers to more closely match the needs of one or more

segments. Thus, Jeans making companies or you may say industry markets to a variety of

segments which they are serving—Students, Youth, Casual dressers lovers, Business

travelers, Working females and others—with packages adapted to their varying needs. Jeans

has designed specific stuff and style for different income and age groups. In fact, it sells

models for segments with varied combinations of age and income. For instance, Jeans

designed straight, simple and loose fit for older, higher-income consumers.

Segment marketing offers several benefits over mass marketing. The company can market

more efficiently, targeting its products or services, channels, and communications programstoward only consumers that it can serve best and most profitably. The company can also




oli mPGliMPage 13

market more effectively by fine-tuning its products, prices, and programs to the needs of

carefully defined segments. The company may face fewer competitors if fewer competitors

are focusing on this market segment.

Niche Marketing

Market segments are normally large, identifiable groups within a market—for example,

luxury jeans buyers, casual jeans buyers, quality jeans buyers, and economy jeans buyers.

Niche marketing focuses on subgroups within these segments. A niche is a more narrowly

defined group, usually identified by dividing a segment into sub segments or by defining a

group with a distinctive set of traits who may seek a special combination of benefits. For

example, the quality jeans segment might include light-weight, nice stuff and support their

personality what they want to be look. The casual jeans subsegment might be further

divided into standard (as served by Outfitters and Stoneage) and luxury jeans (as served by

Levi’s and Wrangler) niches.

Whereas segments are fairly large and normally attract several competitors, niches are

smaller and normally attract only one or a few competitors. Niche marketers presumably

understand their niches' needs so well that their customers willingly pay a price

premium.Niching offers smaller companies an opportunity to compete by focusing their

limited resources on serving niches that may be unimportant to or overlooked by larger

competitors. However, large companies also serve niche markets.

In many markets today, niches are the norm. As an advertising agency executive observed,

"There will be no market for products that everybody likes a little, only for products that

somebody likes a lot." Other experts assert that companies will have to "niche or beniched."

Micromarketing

Segment and niche marketers tailor their offers and marketing programs to meet the needs

of various market segments. At the same time, however, they do not customize their offers

to each individual customer. Thus, segment marketing and niche marketing fall between the

extremes of mass marketing and micromarketing. Micromarketing is the practice of tailoring

products and marketing programs to suit the tastes of specific individuals and locations.

Micromarketing includes local marketing and individual marketing.

ketsSegmenting Consumer Mar

There is no single way to segment a market. A marketer has to try different segmentation

variables, alone and in combination, to find the best way to view the market structure. The

major variables that might be used in segmenting consumer markets. Here we look at the

major geographic, demographic, psychographic, and behavioral variables.




oli mPGliMPage 14

Geographic

Density Urban, suburban, rural

Demographic

Age 12 –1

Gender Male, female

Family life

cycle

Young, single; young, married, no children; young, married with children; older,

married with children; older, married, no children under 18; older, single; other

Income Under 10,000; 10,000 –20,000; 20,000 –30,000; 30,000 –50,000; 50,000 –100,000;

100,000 and over

Occupation Professional and technical; managers, officials, and proprietors; clerical, sales;

craftspeople; supervisors; operatives; farmers; retired; students; homemakers;unemployed

Education Grade school or less; some high school; high school graduate; some college;

college graduate

Psychographic

Social class Lowe

middl

upper

Lifestyle Achievers, strivers, strugglers

Personality Compulsive, gregarious, authoritarian, ambitious

Behavioral

Occasions Regul

Benefits Quality, Comfort, Economy




oli mPGliMPage 15

Evaluating Market Segments

In evaluating different market segments, a firm must look at three factors: segment size and

growth, segment structural attractiveness, and company objectives and resources. The

company must first collect and analyze data on current segment sales, growth rates, and

expected profitability for various segments. It will be interested in segments that have the

right size and growth characteristics. (Appendix 1 discusses approaches for measuring and

forecasting market demand.) But "right size and growth" is a relative matter. The largest,

fastest-growing segments are not always the most attractive ones for every company.

Smaller companies may lack the skills and resources needed to serve the larger segments or

may find these segments too competitive. Such companies may select segments that are

smaller and less attractive, in an absolute sense, but that are potentially more profitable for

them.

The company also needs to examine major structural factors that affect long-run segment

attractiveness. For example, a segment is less attractive if it already contains many strong

and aggressive competitors. The existence of many actual or potential substitute

products may limit prices and the profits that can be earned in a segment. The

relative power of buyers also affects segment attractiveness. Buyers with strong bargaining

power relative to sellers will try to force prices down, demand more services, and set

competitors against one another—all at the expense of seller profitability. Finally, a

segment may be less attractive if it contains powerful suppliers who can control prices or

reduce the quality or quantity of ordered goods and services.

Even if a segment has the right size and growth and is structurally attractive, the company

must consider its own objectives and resources in relation to that segment. Some attractivesegments could be dismissed quickly because they do not mesh with the company's long-

run objectives. Even if a segment fits the company's objectives, the company must consider

whether it possesses the skills and resources it needs to succeed in that segment. If the

company lacks the strengths needed to compete successfully in a segment and cannot

readily obtain them, it should not enter the segment. Even if the company possesses

the required strengths, it needs to employ skills and resources superior to those of the

competition in order to really win in a market segment. The company should enter only

segments in which it can offer superior value and gain advantages over competitors.

Selecting Market Segments

After evaluating different segments, the company must now decide which and how many

segments to serve. This is the problem of target market selection. A target market consists

of a set of buyers who share common needs or characteristics that the company decides to

serve.




oli mPGliMPage 16

Target Marketing

Smart targeting helps companies to be more efficient and effective by focusing on the

segments that they can satisfy best and most profitably. Targeting also benefits

consumers—companies reach specific groups of consumers with offers carefully tailored to

satisfy their needs. However, target marketing sometimes generates controversy and

concern. Issues usually involve the targeting of vulnerable or disadvantaged consumers

with controversial or potentially harmful products. There are lots of local companies of

jeans who are serving small segments and the reason behind that is they have less

resource. Jeans companies are targeting Lower lowers, upper lowers, working class, middle

class, upper middles, lower uppers, upper uppers. In extent to these students, working

women, business class is targeting. Thus, in market targeting, the issue is not really who is

targeted but rather how and for what. Controversies arise when marketers attempt to

profit at the expense of targeted segments—when they unfairly target vulnerable

segments or target them with questionable products or tactics. Socially responsible

marketing calls for segmentation and targeting that serve not just the interests of the

company but also the interests of those targeted.

Positioning for the competitive advantage

Once a company has decided which segments of the market it will enter, it must decide

what positions it wants to occupy in those segments. A product's position is the way the

product is defined by consumers on important attributes—the place the product occupies in

consumers' minds relative to competing products. Positioning involves implanting the

brand's unique benefits and differentiation in customers' minds. Consumers are overloadedwith information about products and services. They cannot reevaluate products every time

they make a buying decision. To simplify the buying process, consumers organize products

into categories—they "position" products, services, and companies in their minds. A

product's position is the complex set of perceptions, impressions, and feelings that

consumers have for the product compared with competing products. Consumers position

products with or without the help of marketers. But marketers do not want to leave their

products' positions to chance. They must plan positions that will give their products the

greatest advantage in selected target markets, and they must design marketing mixes to

create these planned positions.

Companies PositioningLEVI’S Embrace your shape

LEVI’S

for women

Lighten up

Stone age

All your fashion needs

sorted.

Outfitters

Passion




oli mPGliMPage 17

Choosing a Positioning Strategy

Some firms find it easy to choose their positioning strategy. For example, a firm well known

for quality in certain segments will go for this position in a new segment if there are enough

buyers seeking quality. But in many cases, two or more firms will go after the same position.

Then, each will have to find other ways to set itself apart. Each firm must differentiate its

offer by building a unique bundle of benefits that appeals to a substantial group within the

segment.

The positioning task consists of three steps: identifying a set of possible competitive

advantages upon which to build a position, choosing the right competitive advantages, and

selecting an overall positioning strategy. The company must then effectively communicate

and deliver the chosen position to the market.

BRAND AWARENESS

People now having a more knowledge about what to wear and when to wear. The events

are upcoming they are planned about wearing. People know about the brands Levis,

Outfitters, Denim, Calvin Klein and Stone Age.

BRAND COMPETITORS LISTS

Levis

Outfitters

Denim

Calvin Klein

Stone age

Wrangler

Co 81

Marks & Spenser

Blue horbor




oli mPGliMPage 18

Business Plan:

Step 1

Identify your market segment by determining your target customers and the products you

will offer. Before writing the business plan or attempting to acquire or market products,

know exactly the sorts of jeans products you will sell and exactly which demographic will

buy your products. Once you have decided between designing your own jeans clothing,

retailing or wholesaling the designs of others or dealing in bulk fabric, stick to that decision

and focus on growing your company's reputation within that segment.

Step 2

Draft a business plan to guide your business in its early stages, as well as to help you

articulate and solidify your company's direction. A good business plan includes a detailed

summary of your company, the market whose needs it will satisfy, details of the product line

you will offer and the financing the business will need to become profitable, according to

the Small Business Administration. Note what products are in demand and in what

quantities, then specifically explain how your product line will compete and become

profitable.

Step 3

Incorporate your company as a limited-liability company, which will save money on your

taxes because the Internal Revenue Service allows you to claim the LLC's profits as personal

income. After you incorporate, rent or lease a space that will allow you to showcase your

product line to customers in a clean, inviting storefront. Look for a space that will allow you

to store surplus inventory as well, because many wholesalers and shippers offer deals to

businesses that buy in bulk.




oli mPGliMPage 19

Developing and Marketing Products

Step 1

Source your denim and accessories such as rivets and zippers, using market research to plan

which textures, washes and colors of denim will populate your product line. Determine what

types of clothing and accessories you will sell, what sizes and fits you will make and consider

taking custom orders. Denim varies in weight from 10 to 14 ounces per square yard,

according to the website Apparel Search; use denim that is 12 to 14 ounces per square yard

to make jeans and jackets, and lighter denim to make shirts and blouses.

Step 2

Create your product line and feature it in your storefront. Custom, handmade denim

clothing and accessories can be difficult and time-consuming to produce, so hire employees

with experience and training in designing and merchandising clothing. Employees with

denim design talent could help you expand the company's product line by adding their own

designs to the store and could also increase the number of customers your company can

serve.

Step 3

Market your product line by advertising directly to your target audience in the media

through which they consume advertising. Market your denim as a more affordable andmore fashionable alternative to mainstream choices, detailing your tailoring skills, options

for customization and the quality of the denim your company uses. If you intend to appeal

to college students, for example, approach them in person and avoid television, radio and

print advertising campaigns because, according to Boston.com, that demographic is

becoming increasingly difficult to reach through conventional means.

Step 4

Seek opportunities to make your brand unique, then incorporate those ideas into yourbusiness plan. Consider making a popular custom-made item a part of your regular product

line, for example, or associate your brand with a recognizable style, such as jeans without

pockets or denim skirts with zippers. Keep your business viable by creating and selling

denim products that are unmistakably yours, but be prepared to change with the desires of

your customers and the fashion industry as a whole.




oli mPGliMPage 20

The Marketing Environment

Today’s market is characterized by highly competitive organizations which are all

vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own

competitive edge to be able to survive and be successful. Strategies are carefully planned

and executed to gain the ultimate goal of all: company growth. However, external factors

are not the only elements which influence growth. There are also internal factors,

components working within the organization which shape the direction of the company.

The company’s marketing environment influences the business organization directly.

This includes the suppliers that deal directly or indirectly to the people within the business

organization, the consumers and customers who demand for the products or services

offered by the company, and other local stakeholders who influence the decision-making

process or affected by the business decisions made by the business firm. As such, the

marketing environment of a particular company describes the relationship between firms

and the driving forces that control this relationship who are members of a specific industry

wherein the relationship is local and the firm may exercise a degree of influence.

The Role of Marketing Research in Decision Making Process

The structured method of marketing research has enabled countless of producers

and consumers alike to better understand their relationship. Generally, the role of

marketing research in every business environment is to provide information that are

necessary in the decision making processes for the development and benefit of the

company.




oli mPGliMPage 21

There are numerous studies conducted to verify the potential effects of information

in business environment obtained through marketing research. The value of information in

decision making is proven especially in enhancing performance, reducing uncertainty, and

processing business plans. The information collected through marketing research, may it be

qualitative or quantitative in nature is essential in the overall being of the company.

Furthermore, there are other several experimental studies that have proved that

marketing research is indeed an important element in companies' success formulae. give

evidence that the level of use of marketing research is positively related to company

effectiveness. Every effort exerted in the research process is justified when the by-product is

the optimal performance of the business. In the same way, those more successful

companies carry out marketing research, in sharp contrast to less successful companies.

Focusing on small firms’ environment, found a positive relationship between the use of

environmental information and small firm financial performance.

Decisions based on marketing research information are an important factor in

overall business success. These studies show the linkage of marketing research and

company’s performance. Again, the role of marketing research in the decision making

process of the company is to provide imperative information that is very vital in the growth,

success and survival of the marketing course of the product in relation to the business as a

whole.






oli mPGliMPage 23

- tax policy

- employment laws

- political stability

- environmental regulations

- trade and tariff restrictions

Economic Aspects

It is important that a certain company must also give enough attention to its

economic stability. The economic goal of a certain industry is like an axis in which other

objectives or goals are revolving. The economic factor involves the context in which an

industry belongs, i.e. the configuration of the competition in which a company operates the

active demand of the products, general economic condition of the nation or region,

conditions in relation with other industries, and the situation of the resource markets.

- economic stability

- economic growth

- interest rates

- inflation rates

Socio-cultural Sector

Society and culture is an important factor that must be given emphasis by any

business, specifically those who are operating in the global arena. It is important that the

company must operate in compliance with the social systems in order to gain good

reputation and effective public image. On the other hand, cultural aspects is equally

essential, in order to understand the various needs of different individuals that belongs to

different cultures.




oli mPGliMPage 24

- population growth rate

- age distribution

- career attitudes

- consumer behavior

- religion and culture itself

Technological Aspects

The complexities of achieving business success through increased efficiency,

effectiveness and competitiveness, combined with innovative applications of modern

technology, has heightened the awareness of both technology and business managers

towards more strategically oriented approaches for planning and management of any

industry. Hence, it is important that a company must be able to give consideration to the

technological aspects.

- distribution and communication channels

- technology incentives

- automation

- rate of technological change

- environmental and ecological aspect

- barriers to entry

- production level

- outsourcing decisions




oli mPGliMPage 25

Emphasis on Economics

The marketing concept has been defined as ‘the key to achieving organizational goals’

and the marketing concept rests on ‘market focus, customer orientation, coordinated

marketing and profitability’. In a profit making business the firm obviously has to try and

achieve this level of customer satisfaction as a way of staying ahead of the competition and

making a profit. Traditionally, marketing has been utilized by the private sector in decisively

increasing the capabilities of an organization. Marketing can be considered as one of the

most important element underpinning successful business creation. The importance of

marketing concept incorporates oft-repeated elements such as: customer orientation;

integrated marketing efforts; and resultant profitability.

In marketing operations, the marketing manager must have the ability to

strategically decide the most essential external environment factors to be monitored in

order to sustain the competitive advantage of the company in the future. In the case of ABC

Clothing Company, the marketing manager of the company should give focus on the

economic aspects. As mentioned, economic aspects includes the possible conditions needed

in order to gain competitive advantage within the marketplace. Economic sectors include all

the possible factors that drive an industry to know where it belongs such as the condition of

its competitors, entire economic situation of the region and nation in which the company is

operating. In this particular case, ABC Clothing Company is operating in different areas or

regions of the world, including Asian market.

In this manner, the marketing manager, should be able to consider economic sectors

in its monitoring to ensure that ABC Clothing Company adheres to all elements of economic

factors of the external environment. Just like what big as well as small multinational




oli mPGliMPage 26

companies that are operating globally. Herein, the marketing manager should be able to

monitor the economic status of a certain country where the company is currently operating

or the economic status of a country in which the company would plan to operate in the

future. It is said that if a country with a good economic status or which is economically

stable, there is possibility to gain more customers which would avail the quality products

offered by the company.

Industry Analysis

Companies in the industry sell to a few large customers/buyers. Likewise, the

industry also displays an apparent impracticality for customers/buyers to switch from one

source of supply to another. This is reflected by the cost of raw materials as well as the costs

of operations. Moreover, the products offered by companies in the industry are essentially

interchangeable and indistinguishable. The product could also be considered as a

commodity for the retail industry especially in the clothing business. Moreover, the industry

shows that the cost of the product and service represents a relatively large percentage of

the buyer’s and customer’s total cost. Nonetheless, the customers could if desired

backward-integrate specifically by acquiring a company in the industry to which is included.

The following are micro-environmental aspects that are necessary to consider.

Suppliers’ Power

Many suppliers provide raw materials to the industry. Moreover, companies in the

industry are not likely to backward-integrate. On the other hand, it could also be posited

that the companies in the industry are the primary source of revenues for the suppliers. This

makes the competition among suppliers more rigid. Likewise, if raw -material costs get out

of line, companies in the industry would be able to have a hard time using a different type




oli mPGliMPage 27

of raw material to produce the product. The industry is also characterized with the quality

and costs of raw materials having a significant impact on the quality and price of the

products and services produced by the industry.

Moreover, the raw materials provided by suppliers are essentially interchangeable

and indistinguishable. The raw materials are essentially commodities. Likewise, in an

industry where loyalty is also considered necessary, there is also the possibility for the

suppliers to forward-integrate.

Rivalry Among Competitors

Companies in the industry considered to be diverse in their history and culture and

in how they do business. Moreover, the product/service sold by the industry has low

storage costs or is not perishable. Nonetheless, the industry is experiencing fast market

growth.

The products offered by companies in the industry are essentially interchangeable

and indistinguishable. It has also been established that the product provided by the

company is a commodity to a major part of its stakeholders. Moreover, it also shows that

there are considerable numbers of large competitors that dominate the industry.

In the said industry, companies in the industry have high fixed costs and spend a lot

of money on plant and equipment. Likewise, production capacity, to be economically

feasible, must be done in large, expensive increments. Significant barriers as well hinder

companies that want to exit the industry. These include regulations, labor agreements, costs

of closing facilities, and the absence of secondary market for assets. In addition, it could also




oli mPGliMPage 28

be observed that staying in the industry is of great strategic importance to companies in the

industry, probably because they have nowhere else to go.

Threats of New Entrants

The economies of scale play a significant role in the cost of produce the product and

service. Companies in the industry have low fixed costs and spend relatively little on plant

and equipment. Moreover, competitors in the industry are not likely to cut their price to

defend their market position. In an industry experiencing fast market growth, patents,

proprietary knowledge, and brand reputation are also considered as barriers for companies

entering the industry.

Threat of Substitute Products

The price of substitute products is more expensive. This provides the industry a great

following. Moreover, the quality, features and benefits of substitute products are generally

lower.

Environmental Impact of Jeans

Like most industries, jeans are not environmentally friendly. All industries have some form

of waste, whether it be from excess materials, the process of manufacturing said product,

the energy that is used to power the machinery or the amount of water needed for

manufacturing; all industries give off harmful waste or take too much from the earth.

Cotton, mainly imported from the Middle East, is the main ingredient in producing jeans,

which is what jeans are made of. Cotton is a big contributor to water consumption in the

jean industry. The amount of cotton needed to make one pair of jeans is on average 1,500

gallons and the machinery used to harvest the cotton consumes one pound of oil per

harvest. The resulting cotton yarn is processed using starch, paraffin and sometimes caustic

soda to provide a “worn” look. Starch is biodegradable but can be harmful to the earth

when dumped in the water supply, since the microbes that cause the starch to biodegrade

consume oxygen. If the starch waste is dumped into waterways, it may deteriorate theoxygen level and pH of streams and waterways






oli mPGliMPage 30

Swot Analysis

SWOT Analysis Examples: Strengths

Possible Strengths ResponseIs it a

strength?

Tangible Strengths

Large outlets of all brands. Shop fittings

and stock with

computer and

software.

Yes

Levi's is market leader and trend setter. Can pick and

choose what

styles to

stock.

Yes

All brand sin jeans industry which are multinationalbrands they have sufficient financials in their assets to

increase.

Having fundan expansion

to a larger

footprint

store.

Yes

Due to having a local manufacturer in market so it's a

advantage for jeans industry.

No, rents are

all pretty

standard, you

can save on

rent but loose

the foottraffic, so it is

all relative.

No

Using superior technology in business from software to

stitching.

Yes

High volume business. We do sell a

lot, Our

product is

high quality,

high margin

and lowvolume in

comparison

Yes

Can scale up your volume Orders are

placed in

advance, shop

size having a

limit to fulfill

these orders.

Yes

Intangible Strengths

Strong recognizable brands like Levi's, Outfitters,Denim, Stoneage , Calvin klein.

The brandspace is

Yes




oli mPGliMPage 31

becoming

cluttered with

more and

more

recognizable

brands.

Have good relationship with customers. (Goodwill) We have a

good

connection

with our

customers,

our email list

grows and

many

customers

advise they

were referred

to us by their

mates.

We get a lot

of repeat

customers.

Yes

Have strong relationships with suppliers Though they

have just

another

supplier to

them. They

are able to

differentiate

from our

competitors.

They have

long term

agreements in

place with

somesuppliers to

be their sole

representative

in this region.

Yes

Positive relationship with employees Yes No, our

competitors

also have

good

employee

relations




oli mPGliMPage 32

Brand names are patents and copyright in that

industry.

Yes Yes

Have a proven advertising process that works well. Email news

letter with

specials and

new stock,

seems to work

for retaining

customers.

Most new

customers

were

attracted to

the shopping

complex.

Yes

Innovative business In sales and

relationship

building.

Yes

Other Strengths

All big markets in Pakistan outlets are there Current

location in the

center has

high traffic, in

an area with

several other

shops

targeting the

same market

which draws

people to the

area

No

Summary

The key strengths

1. Unique brands protected by sole supply agreements

2. Successful relationship marketing, and

3. Innovative sales techniques




oli mPGliMPage 33

SWOT Analysis Examples: Weaknesses

Possible Weaknesses Response Is it a Weakness?

Tangible Weaknesses

Product line too narrow Maybe, we only sell a few

of brands of men clothing,we could stock more

accessories, but we don’t

want to confuse the

customer about what line

of business we are in.

Maybe

High overall unit cost relative

to your competitors.

Local brands Maybe

Intangible Weaknesses

Marketing plan can fail to meet

objectives

On some certain issues. Yes

Managers inexperienced. Yes Yes

Lack industry knowledge. Yes, maybe

lack innovative skills. Yes Maybe

Summary

The key weaknesses

1. Small store size and inability to find an expansion, resulting in stocking a

limited product range

2. Manager has limited industry experience and industry knowledge

SWOT Analysis Examples: Opportunities

Possible Opportunities Response Is it an

Opportunity?

Industry OpportunitiesCan expand product range. Yes, there are no contractual

restrictions to adding products to the

store.

Yes

Can expand into supplier's

field.

Yes, the skills to establish an import

business

Yes

Can expand customer

base(Geographically or

through new products)

Maybe, through internet sales and mail

order, maybe open another location

Yes

Have placid competitors. Yes, there is not a lot of competitive

advertising in our niche, and price is notso much of an issue to our customers

Yes




oli mPGliMPage 34

Export opportunities. Jeans are import Yes

Total market products

grow.

Yes, but not significantly Yes

Macro Opportunities

Economic outlookfavorable

No, however this may play favorably tobusiness as our target market might

postpone larger expenses as a result a

greater share of purse may be allocated

to clothing – this is yet to be proven.

No

Favorable cultural shifts

that will benefit.

Due to increases in housing prices our

target customer has opted to postpone

taking on longer term debit. Instead to

remain in the “nest” for longer. This

trend increases their customer life for

our products.

Yes

Any changes in the use of

technology that business

can utilize such as

Ecommerce or Internet

sales?

Use of internet to increase marketing

and online sales.

Yes

Strengths - SWOT analysis

First, focus on Strengths. What within your marketing strategy is an advantage for you? Let'ssay, for instance, that you are already doing well with your particular brand in that you are

functioning at number two. You also have an advantage over other competitors in that

customers are very loyal to your brand so that you're not likely to lose that base. We have a

good connection with our customers, our email list grows and many customers advise they

were , Due to having a local manufacturer in market so it's a advantage for jeans industry.

Weaknesses - SWOT analysis

Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but

we don’t want to confuse the customer about what line of business we are in.

Opportunities - SWOT analysis

What opportunities does business have? Company needs to place emphasis on domestic job

growth. You need to improve "green" jobs, and environmentally friendly practices. You can

do this by manufacturing domestically and stop sending jobs overseas. Can expand product

range. Can expand into supplier's field. Can expand customer base(Geographically or

through new products). Export opportunities. Total market products grow.




Threats

Threats do industry face? Clothing is more expensive because of brand name marketing.

This could reduce customer in the future. Clothing does not target teenagers. Teenagers

turn into adults and they may forget your name. External competion is making headway.

Documents

Marketing full n Final.docx