Professional Documents
Culture Documents
Table of Contents
2.Proposed Questions for Qualitative Research 11....Jeans Industry 12Level of Market Segmentation 17.Brand Awareness 18..Business Plan22Pest Analysis j 30..Strenghts-Swot Analysis j 33...Weakness-Swot Analysis Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but we j 34j.................................jdont want to confuse the customer about what line of business we are in. j 34........................................................................................Opportunities - SWOT analysis sample j 35j..........................................................................................................................................jThreats
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1. Which Pakistani cultural dress you like most or influence you? Punjabi Sindhi Balochi Pathani Kashimiri
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3. How would you define premium jeans? Comfort, Quality Stitching, Style Fashion, Style symbols Price, Quality
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4. Which kind of dresses you like most? Formal Casual Both Don't bother
15%
15%
15%
55%
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5. What factors determines how much you pay for jeans? Quality Price Variety All of them
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6. What type of person would most influence you most to buy jeans? Peers Celebrities Models Sports celebrity
What type of person would most influence you most to buy jeans?
Peers Celebrities Models Sports celebrity
20%
10%
40% 30%
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7. What are your perceptions of current clothing advertisements are? Very Good Good Neutral Disagree
25%
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8. Name a jeans advertisement that is memorable to you? Levi's Stoneage Denim Outfitters Calvin Klein
3% 5%
10%
5%
77%
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Current trend?
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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 key principles 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 consumer perceives 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 than awareness; 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.
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Mass Marketing
Companies have not always practiced target marketing. In fact, for most of the 1900s, major consumer products companies held fast to mass marketingmass 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 thats 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 todays 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 up a 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 servingStudents, Youth, Casual dressers lovers, Business travelers, Working females and otherswith 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 programs toward only consumers that it can serve best and most profitably. The company can also
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Niche Marketing
Market segments are normally large, identifiable groups within a marketfor 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 Levis 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 be niched."
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.
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1219
Lower middle upper Achievers, strivers, strugglers Compulsive, gregarious, authoritarian, ambitious
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Companies
LEVIS LEVIS for women Stone age
Positioning
Embrace your shape Lighten up
Outfitters
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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.
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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.
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The companys 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.
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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 companys 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.
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The environment we live in can be very volatile. All organization has its considered internal weaknesses and strengths, but the outside world will also have a major impact on the organizations future. PEST Analysis is a popular marketing management tool and method of examining the many different external factors affecting an organization. The acronym PEST stands for the following: Political, this is the current and potential influences from political pressures; Economic, the local, national and world economy impact; Sociological, the ways in which changes in society affect the organization; and Technological, the effect of new and emerging technology.
Since the company is offering clothing designs for all ages which depend on the needs and demands of their customers, there are some external factors that the company must consider in order to stay in the competitive world of business. The following are some of the factors within the external environment that the management of the company must consider.
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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.
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.
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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
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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
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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 buyers and customers 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
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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.
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
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Shop fittings and stock with computer and software. Levi's is market leader and trend setter. Can pick and choose what styles to stock. All brand sin jeans industry which are multinational Having fund brands they have sufficient financials in their assets to an expansion increase. to a larger footprint store. Due to having a local manufacturer in market so it's a No, rents are advantage for jeans industry. all pretty standard, you can save on rent but loose the foot traffic, so it is all relative. Using superior technology in business from software to stitching. High volume business. We do sell a lot, Our product is high quality, high margin and low volume in comparison Can scale up your volume Orders are placed in advance, shop size having a limit to fulfill these orders. Intangible Strengths Strong recognizable brands like Levi's, Outfitters, The brand Denim, Stoneage , Calvin klein. space is
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Yes
Yes
No
Yes Yes
Yes
Yes
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Yes
Yes
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Innovative business
Email news letter with specials and new stock, seems to work for retaining customers. Most new customers were attracted to the shopping complex. In sales and relationship building. 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
Yes
Yes
No
Summary The key strengths 1. Unique brands protected by sole supply agreements 2. Successful relationship marketing, and 3. Innovative sales techniques
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Industry Opportunities Can expand product range. Yes, there are no contractual restrictions to adding products to the store. Can expand into supplier's Yes, the skills to establish an import field. business Can expand customer Maybe, through internet sales and mail base(Geographically or order, maybe open another location through new products) Have placid competitors. Yes, there is not a lot of competitive advertising in our niche, and price is not so much of an issue to our customers
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Yes Yes
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Any changes in the use of technology that business can utilize such as Ecommerce or Internet sales?
No, however this may play favorably to business 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. 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. Use of internet to increase marketing and online sales.
No
Yes
Yes
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