Salwa Shaukat – L1S06BBAM0001

Javeria Maqbool–
L1S06BBAM0032
Sana Azhar – L1S06BBAM2024
29/1/2009
Kanwal Tariq – L1S06BBAM2037

EXTERNA
L AND
INDUSTRY : FASHION
INTERNAL
ANALYSIS
INDUSTRY
COMPANY: MARIA B.

Submitted To:
Professor Nasir Riaz
 2

Executive Summary:

This work is an introduction to the fashion industry of Pakistan which

has made quite a lot of progress in just a few years. Ten to fifteen years from
now, this industry was still unknown to actually exist to the masses. Later
with the formation of fashion councils and education centers under the
enthusiastic few who wanted to make a difference and promulgate this very
institution of fashion, did the very fashion industry took its concrete contour
from the old tailor culture that formerly existed. Today it is one of the most
progressing industries in the country.

The fashion industry too, is influenced by external forces be they

social, political, economic, technological or even competitive, which serve as
a main driver for this industry. Moreover, relations with stakeholders - mainly
suppliers, distributors and customers, and the strength and width of its
competitors also define activities in the business. However, the relative
strength of impact of these external factors on the industry varies (as in
every industry) and is computed with analytical tools like PEST-C analysis
and Porter’s five forces model.

Nonetheless, fashion industry assures new arenas of growth and

development; new opportunities for employment. This industry promises a
different national projection that is serene and contemporary.

Later, an extensive internal analysis of the company of concern is

carried out, which in this piece of work is Maria B.

Maria. B. is one of the most well renowned brands of Pakistan. A company

formed to revolutionize the tailor-culture of apparel making in our society.
Maria B. is a brand that reaches to all sectors of both the traditional and
urban female fashion demand through a unique combination of pricing and
the diversity in the fashion lifestyles that she offers.
 3

She is the only designer to have all the needs of different segments of
the woman’s demographic covered under one roof. (Randhawa) She has
been adopted by the modern Pakistani women along with the hip crowd as
the latest cult label in recent years. This country previously never witnessed
a true international prêt-a-porter collection before Maria’s infamous “Paris
Collection” in 2001. Her clothes are a reflection of her own style. (Fashion
Avenue Quarterly, 2003)

The top student from the first batch of graduates from the Pakistan
School of Fashion Design, Maria was selected in 1997 to represent Pakistan
at the international competition in Belgium, Europe called ‘Les Etoiles de la
mode’, an annual young designers award. She made a major international
media impact, and was the first Pakistani fashion designer who created
awareness of Pakistani Fashion on the world circuit, when she finished top 3
in the final rankings amongst 22 participating countries including global
fashion giants like, France, Italy, Japan, and U.S.A.

A media darling of the local press, Maria B. opened her first outlet in
1998 in DHA Commercial Block, Lahore at a time when her peers and seniors
were still operating from their homes, or at rented houses. Today, Maria B is
immensely successful and is the largest selling brand under a fashion
designer’s label in Pakistan. (Randhawa)

Her lines are so exquisite and Maria considers them her strength. With
her financial strength and international presence, Maria B intends to bring a
change in the local fashion industry.
 4

Introduction:

Fashion in itself is a very abstract term yet it embraces our everyday

lives. The term has many different definitions and interpretations. According
to The American Heritage College Dictionary, fashion is: the prevailing style
or custom, as in dress or behavior; something, such as a garment, that is in
the current mode; the style characteristic of the social elite. (Forbes Inc.,
1997).

Fashion is an extension of self, an expression of individuality, of art and

modernism. It has no borders or divides. Its passion and it is the constant
evolution of society (Ghafoor, 2002). Fashion is a social phenomenon
common to many fields of human activity and thinking. To some, fashion is
an art form. To others, it is life. For most people it is a method of utilizing
clothing, accessories and hair. Fashion is a mode to express yourself, to
serve as an extension of your personality, or even to disguise your true self
(Nellis, 1999).

Fashion is a term commonly used to describe a style of clothing worn by

most of people of a country. A fashion usually remains popular for about 1-3
 5

years and then is replaced by yet another fashion. Even though there are a
lot of changes in fashion, most people do not easily except the changes. A
clothing style may be introduced as a fashion, but its use becomes a custom
after being handed down from generation to generation. A fashion that
comes and goes is called a Fad. (Fashion Forever: What is Fashion?)

A lot has changed and evolved in the history of fashion since the 1900s. As
the century dawned, fashion was an exclusive enterprise, the pursuit of
wealth. The average person in society settled for garments that were usually
stitched at home. With time, however, networks of neighborhood tailors
began to evolve into a retail history and the boom was followed by boutique
selling.

The 1930s were influenced by socialism, communism and fascism and

women’s fashion became more and more feminine in keeping with these
conservative ideas. However, this period also saw the emergence of the
culture of clubs and hence dresses
became more body-hugging and
colors went more deep and dark.
The establishment of Indian and
Pakistani cinema has proved to be
the strongest influence on the
fashion in the decade. Due to
western influence, the use of
angarkhas, choghas and jamas had
diminished considerably by this time, although the ceremonial pugdi, safa
and topi were widespread as ever. They had been replaced by the sherwani,
which is still a standard item of formal dress for Indian and Pakistani men
today.
Even though women were accepting change, they continued to wear the
peshwaz, kurta, ghaghra and odhni at religious and ceremonial festivities,
 6

which were even sometimes made of imported fabrics.

The 1950s saw the dawn of art colleges and schools and due to the
freedom struggle and the adoption of khadi by Gandhi, the dying and
handloom industries got more business.
The 1960s was one of the most shock-filled decades of the century, as
it saw sweeping fashion and lifestyle changes. Tight kurtas and churidars
competed with mini-skirts abroad and at the same time, designers began to
understand the need for cheaper, ready-to-wear lines.
The 1970s saw the export of traditional material with the result that
export surplus was sold within the country itself and hence, international
fashion came to the sub-continent. Synthetics became popular and the
clothes even flashier.
In the 1980s big money ruled. In Pakistan too, silhouettes became
more masculine and the shalwar kameez was made with shoulder pads.
The influence of cable TV became more prominent and the teenage
market boomed with youngsters who were more fashion conscious. (Baig,
2004)

Mid 1990s and the beginning of the 21 st century was marked fashion
designers that changed the way fashion was contemplated.

Designers greatly influence what direction fashion will go. These

designers design and define future fashion developments. They are the trend
setters of change in a culture – through change in tastes and lifestyles of a
community which is often characterized by changes in current trends and
styles. And changes in fashion play one of the major roles in these
transformations.

The activities of these designers,

collaboratively, form the fashion
industry. The fashion industry of
Pakistan is growing in volume with
 7

every passing day. The credit goes chiefly to the mainstream fashion people,
who have been instrumental in this change. (Nisar, 2004) The industry has
witnessed quite a mature spurt in the last two decades evolved from a
traditional darzi (tailor) culture into a mature and cutting-edge business
(Imam, 2008). However the status of fashion designers in our country
greatly owes to the fashion institutions, particularly the Pakistan School of
Fashion Design (PSFD) – now called the Pakistan Institute of Fashion Design
which was played its role in bringing out the potential and imparting training
to young designers who today enjoy a reputed name in the retail market.
Some of these recognized names include Maria B, Hasan Shehryar Yasin,
Deepak Parwani and Maheen Khan (Qureshi, 2008).These are some of the
few names which the fashion industry identifies with.

Though the industry had been operating for quite a time, it actually got
its institutional shape after the formation of the Pakistan Fashion Design
Council. This council was an attempt by twenty five of the country’s top and
established designers to create an infrastructure, a platform on which
everyone could collaborate and represent their ideas and designs at the
national and international level; a place where they could:

 Give structure to the expanding vital industry.

 To liaise with the government bodies on matters pertaining to excise
duty, taxation systems, preferential tariffs for cargo etc., and to work
towards creating a fashion districts.
 To create an interface between the fashion industry and textile and crafts
industry which are one of the most well-knit industries , which could
revitalize them and in turn, benefit the designers greatly by incorporating
ethnic methods of weaving, printing and ornamentation to produce up-
market, contemporary creations of standardized quality and subsidized
rates.
 8

 To address the changing needs of the industry as it evolves and of

creatively show-case the work of Pakistani designers and find a
commercial representation for them both, domestically and globally.
(About Us, 2004)

Some of the attempts that the council made was the initiation of a
Pakistan Fashion Week essential for business and trade linkages as well as
for publicity purposes; studying the present distribution/reselling network to
see how designers could benefit from it; creating a trend forecast for
domestic and export markets, and standardizing the prêt-a-porter industry
by having uniform sizing, accounting and labeling norms. (About Us, 2004)

However, the council’s main attempt to collaborate the efforts of

fashion designers failed partly due to poor projection of there vision and
partly due to the difference in the views of designers in the East and South –
Lahore and Karachi, the main fashion hubs. This led to the creation of two
distinct councils, the Pakistan Fashion Design Council (PDFC) in Lahore and
Asian Institute of Fashion Design (AIFD) in Karachi. These two councils have
carried out their separate activities despite unification efforts until lately. On
December 1, 2007, a mall showcasing the creations of Pakistani fashion
designers was inaugurated by the name of Boulevard in Lahore. It was for
the first time in the city’s history that fashion designers from all over the
country got to display their work under one roof (Rashed, 2007). Prominent
designers displaying their work included Hassan Shehryar Yasin, Maria B,
Nomi Ansari, Kamiar Rokni, Shafaq Habib, Karma, Shella Rehman of
Unbeatables, Ammar Bilal, Asifa and Nabeel, Ahsan Nazeer, Sanya Qureshi,
Sobia Nazir, Nickie Nina, Sana Shahid of Sublime and Naila Maqbool. It is
hoped that such a platform will amalgamate the vital forces of our fashion
industry making it the hub of Pakistani fashion houses as is envisaged
(Farooq, 2007).

An Industry Analysis
 9

By definition, industry analysis is business research that focuses on the

potential of a firm. Basically, an industry analysis is conducted to addresses
three important questions:

1. Is the industry accessible—in other words, is it a realistic place for a new

venture to enter?
2. Does the industry contain markets that are ripe for innovation or are
underserved?
3. Are there positions that will avoid some of the negative attributes of the
industry as a whole? (Barringer & Ireland, 2006)

A complete industry analysis of a firm will include its PEST-C analysis

which will answer the first two questions, its Porter’s five forces analysis
which will answer the latter question, followed by its External Forces
Evaluation (EFE) matrix on the basis of the opportunities available and
threats faced by the company of concern Maria B.

PEST – C Evaluation

In this industry evaluation, P stands for Political, E – Economic,

S – Socio-cultural, T – Technological and C – Competitive forces that
impact the activities and opportunities and threats affecting an
industry.

Political forces
These include any change in government laws – tax laws, labor laws,
patent laws, government regulation and deregulation etc, political stability,
safety and environmental protection regulations, international trade
regulations etc. (David, 2005)
Changes in tax and labor laws, can directly affect an industry’s
revenue and growth structures. A rise in the rates of these laws can increase
business expenditures and may decrease revenues. Sometimes, with
 10

industries with low profit margins, such change can become a barrier to
profitability.
Political instability in the country in terms of political parties or
weakness in governmental policy can prove chaotic for the industry. Under
such condition, this business, like any other business can be severely
affected and eventually shut down. For e.g., national political parties like
MQM and MMA reserve a very unfavorable attitude towards the fashion
industry. In case of power, any of these parties can adversely affect or even
lead to a ban on this industry which could prove distressful.
Similarly strict trade regulations and excise policies can affect
international exports and hence, increase the overall trade deficit.
Environmental degradation posses a great threat to survival of any industry.
Hence, being a socially and environmentally responsible corporation is an
essential for projecting a positive public image.

Economic Forces

Economic forces that impact an industry’s activities include interest

rates, income levels and earning patterns, price wars, oil, currency and labor
markets, inflation, unemployment, availability of credit, fiscal policies,
consumption and spending propensity – living standards, international trade
and cooperation policies etc. (David, 2005)
Nowadays, there is a growing trend toward two-income households.
Individuals place an increased premium on time; immediate availability and
improved customer service (David, 2005).Customers are willing to pay more
if they can obtain it with ease. There is an increase in the average standard
of living in the country with a decrease in poverty level of 10.6% during the
past four years (Economic Survey of Pakistan 2007-2008). This can serve as
an opportunity for the fashion industry to enhance profit margins through
‘add-ons’ provided that the income levels remain stable.
Changes in interest rates often occur due to changes in the exchange
and trade market. A deficit in trade can account for rise in interest rates.
 11

Similarly and rise in the international price of oil (as witnessed in recent
years) can drastically impact the value of currency. This leads to changes in
fiscal policy like an increase in the interest rate translated by inflation. High
inflation can slow down business activities and at time generate no profit at
all. The inflation rate the year 2007-08 was calculated to be 10.3% as
compared to the 7.9% last year which shows an increased inflation that
disadvantaged business performance country-wide (Economic Survey of
Pakistan 2007-2008).
However, in an economically active country with lower trade barriers,
resultant price wars can increase competition and even and industry’s profit
margins provided the industry is dominant as well as has international
presence.
Similarly, increased unemployment can provide an industry
opportunity to project a positive image and provide training and employment
to the depressed, hence positively contributing to the economy.
Socio-Cultural Forces

Factors in the socio-cultural front that can influence an industry’s

operations include demographic trends, cultural changes, environmental
patterns, population growth, business attitude, change in tastes and
lifestyles, education, ethical concerns, buying habits, religion, family, values
and attitudes etc.

Pakistan, with a population growth rate of 1.8% is the world’s 6th most
populous country with an estimated total population of 160.9 million.
(Economic Survey of Pakistan 2007-2008) Out of this 74% of the total
population of Pakistan lies in age group 15 – 34. However, 70% of the
population resides in urban areas. (Federal Bureau of Statitics, 2005). With
this came in increase in the literacy rate of the country which increased to
55% in the last four years (Economic Survey of Pakistan 2007-2008).
Business activities have also flourished quite in the recent years, partly
owing to foreign competitors entering the market. This has led to an
 12

increased change in the lifestyles and mindsets of people. There is an

increased trend towards nuclear and dual-career families which serves as
great opportunity for the industry as the buying power of the consumer is
enhanced. Moreover, with change in lifestyles comes change in tastes.
Nowadays people prefer using customized products and this is an
opportunity for the fashion industry to pursue its target marketing strategy.

Fashion industry is an industry for the youngsters. With such a large

and lucrative target market, this industry can earn huge profits, provided it
sufficiently focuses of their needs and interests. In view of this, fashion
industry collaborated with the PBA (Pakistan Broadcasters Association) to
launch a fashion channel worldwide last year by the name of ETNL (Style
Dunia & Youth) which is being launched soon in the country (Pakistan
Broadcasters Association (PBA), 2007).

Religion and ethical preferences too, play a major role in shaping

strategies and marketing products, especially if one moves from culture to
culture. Fashion industry in Pakistan, therefore has to take into consideration
the limitations that ethics, culture and religions imply on clothing nationally
as well as internationally.

Technological Forces

Though fashion industry is not technologically driven, but is has now

become a necessity; especially if an industry or company wants to maintain
competitive edge or tap into international arena. The focus of today’s
industries is on mass customization as well as mass production which are not
possible to achieve if it is inept in technology. Several factors impact an
industry’s technological consideration. These are, Government spending in
research, changes in Information Technology, Internet and Mobile
Technology, energy use and costs, and international transaction costs etc.
 13

Technology is one of the powerful sources of marketing in today’s era.

The world is now a global village. Increase in technology, especially the
internet helps cover a large number of consumers thus, helping a business
reach a large target market in a short time span. According to estimates of
2006, the global internet usage accounts for 21.9% of the total world
population with Pakistan alone, having a total usage of 7.2%. (UNDESA,
2006) This is a very attractive opportunity for the fashion industry in case
fashion designers start e-selling.

International marketing (e-commerce) is one of the major contributors

to world economy. It not only helps in the development of the business but
also helps in the development of the country’s economy. However, any
business before tapping into international arena has to go through various
study and research to adopt proper marketing mix, physical evidence and
performance before launching itself worldwide. It also needs to be aware of
all the rules and regulations (cyber) of its host country. Once capitalized
upon, e-commerce can produce great profits.

Competitive Forces

This force is recently introduced in the PEST analysis. Keeping in view

the growing competition world wide, analysis of one’s competitive forces has
become an essential to success. Gathering information about competitors’
strategies and progress has become very important. Due to diminishing
trade barriers, WTO, EEC, OPEC and collaboration with other world
communities, national border are no more existent. Now every country is a
part of a bloc. This in turn has fiercely increased competition as a result of
lower labor costs, enhanced technology and internet facilities. Now
production is done in one country, assembly in other, packaging and
shipment in another due to advancements in transportation and e-
commerce. Companies strive to achieve competitive edge as low-cost
producers.
 14

In such a rapidly changing environment with international competitors

invading every country, keeping pace with, in fact going ahead of ones
competitors is the only key to progress.

However, it is essential to have a track of strategies and policies of an

industry’s competitors but ethical concerns in gathering intelligence data
should not be neglected.

Competitors of Maria B.

The company that study under fashion industry is Maria B – the largest
fashion house of Pakistan. The company when formed was the first to start
business with a retail outlet while all her competitors were doing business
from home. Today, after ten years in business, Maria B faces competition
from direct as well as indirect sources. A list of her direct competitors
include designers like Hasan Shehryar Yasin, Rizwan Beyg, Generationz,
Deepak Perwani, Nomi Shahid, Nikki and Nina, Sehyr Saigol, Maheen Khan,
Sonya Batla, Hajra Hayat, Nayna, Monica Piracha. With them there are
indirect competitors too that pose a threat to Maria B. They include local
textile shops, local tailors, and famous brands like Gul Ahmed and Bareeze
that are dealers in un-stitched garments.

PORTER’S Five (Competitive) Forces Evaluation

Below a diagrammatic summary of the five important competitive

forces is given:
 15

Rivalry among competing firms

Fashion industry in Pakistan is yet in its progressing stages. It has

moved ahead from being embryonic but hasn’t spurted. However, threat of
competitors is still an important factor that govern the operations of this
industry; particularly the rivalry between fashion designers of Karachi and
Lahore in terms of ideals have prompted every company in the industry to
strive to develop a competitive edge and nationally expand as large as
possible. This is mainly because the few designers that exist at present are
equal in size and capability.

The internet is still not used as a primary source of doing business but
there is a growing tendency among designers, particularly the established
ones to use internet for trade purposes nationally and internationally.
 16

Inflation and changes in customers’ perceptions and attitudes is also a

driving force toward increased competitive rivalry. In the beginning, fashion
designers pursued all their efforts towards bridal dresses. But as customers
are becoming more and more aware and demand of branded apparel is
increasing, these designers are finding new areas of development by
focusing more on casual outfits.

However, this industry is still not mature enough in its life cycle that
price cutting could be a common phenomenon. There is not much time
before these few designers are faced with increased competition particularly
as standards of living become high and international designers set up their
business in the country. Competitive rivalry in this case is comparatively
high.

Threat of new entrants

Threat of new entrants in Pakistani fashion industry is high. This is

because the barrier to enter this market is quite low because no previous
experience is required to start doing business in apparel, customers have low
brand preference and loyalty, too is low. If a customer gets a better option
else where and that too, for a lower price, s/he can switch to that option.

Regulatory policies in the country are not very strong and hence
achieving patents for a product or service is relatively easy. Moreover, the
government itself promotes the setting up of new businesses.

In regards to technological requirement, fashion industry does not

require any cutting-edge technology to keep at pace. Therefore, if one needs
to get into fashion designing, it is quite easy.

Potential development of substitute products

 17

In an apparel industry, there is no substitute for clothes, but there may

be a substitute on the procedure of processing them. Fashion industry, too
faces threat of substitute methods of processing. People, especially in a
growing economy can easily get ideas from designer outfits and get them
stitched through a neighborhood tailor instead of buying it from that very
designer due to its high price. On the other hand, local tailors can give you
the same design, though maybe not the same quality at a comparatively low
price.

Hence, the threat of substitute is high.

Bargaining power of suppliers

Bargaining power of suppliers is quite low in Pakistani fashion industry.

The major raw materials required in this case are textiles and embroidery
materials. These two industries – textiles and embroidery are one of the
richest and profit producing industries of the country. Therefore a designer
has the power and the choice to switch among suppliers and even negotiate
prices as there are a large number of suppliers available to provide the same
or even better raw materials at negotiable prices.

Bargaining power of customers

Bargaining power of customers is low in this industry. This is because

there few choices to select from. Designers have there set prices that are
quite high and fixed – they cannot be negotiated upon. If talked about
competing brands, a buyer cannot easily switch to other options. Products
are homogenous and the prices may either be uniform or else a buyer has to
trade-off with quality of the product.

External Analysis – SW(OT)

OPPORTUNITIES THREATS
 18

Expand into Emerging Economies Competitors

Enter New Product Markets New entrants

Acquire More Companies Substitutes

Ecommerce Sales Economic Situation

Expand Standalone Stores Political situation

International Economies and trade
restrictions
Brand Cannibalization

External Factor Evaluation (EFE) Matrix

This matrix evaluates a company’s external environment – the

opportunities and threats that are faced by an industry’s companies in the
external environment. Our company of concern is Maria B. A summary of all
the factors that are faced by this company and its ability to capitalize on
them or tackle threats is given:

External Factor
Evaluation Matrix
Weighted
Opportunities Weight Rating Score
Expand into Emerging
1 Economies 0.14 3 0.42
2 Enter New Product Markets 0.12 4 0.48
3 Acquire More Companies 0.04 4 0.16
4 Ecommerce Sales 0.06 4 0.24
5 Expand Standalone Stores 0.03 3 0.09
Threats
1 Competitors 0.12 3 0.36
2 New entrants 0.1 4 0.4
3 Substitutes 0.12 4 0.48
4 Economic Situation 0.07 2 0.14
5 Political situation 0.05 2 0.10
6 International Economies and 0.06 3 0.18
 19

trade restrictions
7 Brand Cannibalization 0.09 2 0.18
1 3.23

Fashion industry provides a promising future of growth and

development in Pakistan. Once established, it has the potential to contribute
positively to the national economy.

Company Introduction

Maria B’s entrance into fashion world can be summed up in adage “she
came, she saw, she conquered”. (Ghafoor, Face to face with Maria B., 2002)

Maria B. was the first fashion house in Pakistan. She launched first
outlet in Lahore in 1998. Since then, Maria B. has grown leaps and bounds.
With her vision always clear – to make Maria B. Pakistan’s first international
brand name in fashion, today, she is the first and only women wear brand
retailed across countries. She is the only local designer with a franchise
outlet in London. The Label is also internationally stocked in Manchester,
Birmingham, New Delhi, Dhabi, Orlando, Washington, New York, New Jersey,
Dallas and New Delhi. By the end of 2006, she had retail reach to 5 outlets
nationwide over Lahore, Karachi, Islamabad, and Faisalabad. (Randhawa) In
2006, Maria B. also launched her first range of accessories of shoes and
handbags. (Randhawa)

Maria learned that there was

tremendous scope for Pakistani fabrics in
the international market and was
determined to make her mark globally. As
she said, “I’m a staunch patriot – I want to
take Pakistan’s name in the international
fashion scene. I want to show people
around the world what a great heritage we
 20

have. That really is the core philosophy of my business. We want to go into

the international market and prove ourselves as a Pakistani brand name.”
(Maria B. - Fashion Designer) For her, fashion is simply an extension of self,
an expression of individuality, of art and modernism. It has no borders or
divides. Its passion and it is a constant evolution of society. It is transient
and global. (Ghafoor, Face to face with Maria B., 2002)

She changed the previous ‘begum darzun’ (societal tailoring) culture

and brought new horizons in the fashion, rather the apparel industry as a
whole with her prêt-a-porter collection of exquisite and elegant dresses that
defined femininity with style. She believes that, “Fashion today is not
dictated to woman. The modern confident woman chooses what she wears”.
(Ghafoor, Face to face with Maria B., 2002)

As a designer, she always felt her responsibility to translate and

enhance each person’s natural style into fashion statements according to
current trends. She believes in talent and dedication – if a person is not
talented enough or can’t make fashion his or her life, s/he should be in
another field. She strongly suggests, “Don’t be in fashion because you want
to be fashionable or make money-- be in it because you feel that you can
contribute to it-- otherwise you’ll be just one of the thousands who have
kaarigars (tailors) at home and think that they are designers!!” (Ghafoor,
Face to face with Maria B., 2002) Recognized by BBC, in 2002, over a three
month running program for Asian woman as the preferred label for modern
professional working woman of Pakistan, Maria B has been hailed as the
pioneer in redefining woman’s fashion modernity in Pakistan. (Randhawa)
No doubt Maria B has brought a revolution is the local apparel industry.
Today, after ten years in business, it is the largest fashion house in the local
industry. Her company has risen and surpassed the semblance of mediocrity.
A trend setter as Maria B. has always been, she is even more passionate and
daring to set trends for the future and believes that she can go further than
 21

others in bringing Pakistan on the world map of fashion. (Randhawa) “You

have to aim high – and I do want to get to New York, Milan and Paris one
day.” – Maria B. (Maria B. - Fashion Designer)

Internal Analysis of Maria B.:

Zurain Imam, a renowned fashion critic said that Maria B. has become
‘a veritable couture quality household brand’. (Imam, The A to Z of Fashion,
2006) Maria B. has become a hot name with her exciting shoots and the
rapid expansion of her outlets. Her success has single handedly shown that
fashion can be successfully open in Pakistan as business. (Dawood, 2003) No
doubt, Maria B. has put forward a splendid example a of successful business
venture by expanding worldwide in just a short span of time. All of this
requires planning and organizing strategically. Maria B. believe that it’s the
company’s strategic vision of ‘promoting Maria B. as a Pakistani brand
recognized world over’ has played a very important role in its success. She
believes that with good management, marketing, leadership, research, cost
and operative measures, a company can really go ahead.

Management:

Management at Maria B. like any other successful company is all about

good planning, organizing, motivating, leading and controlling. The company
has a strong management philosophy that believes is integrity, talent and
dedication – if you can’t make fashion your life, choose another field.
(Ghafoor, 2002)

Planning: Maria B. firmly believes that good and forecasted planning is

essential for achieving a desired goal. Planning is all about preparing for
change by bridging the gap between the present and the future. It enables a
company to gather the necessary resources and carry out tasks in the most
efficient manner. (David, 2005)At Maria B. planning is thoroughly done
before the beginning of any new activity or the launch of a new product. The
 22

company also relies on competitive intelligence in order to make

comparative decisions. With no fear on local competition from brands like
Hasan Shehryar, Nomi Ansari, Ammar Bilal, Deepak Parwani, Rizwan Beyg
and Nilofer Shahid etc., the company formulates strategies in view of the
international market and international competitors like Armani, Prada, and
Louis Vuitton etc.

Organizing: Organizing is really important for defining task and authority

and effectively and efficiently allocating resources for any company. (David,
2005)

At Maria B. defining line of authority is important. The company started

off with a functional structure with Maria being the CEO as well as the
controller all designing and marketing activities. With the company’s
expansion across the borders, Maria B. now is developing towards a more
divisional structure with line of command spreading internationally. Since the
Maria B. Accessory launch in 2006, and the company’s aggressive intensive
strategies through market and product development, it won’t be long till
Maria B. starts working at each production line separately at the
organizational level. At present, the company employs more than 50
management staff in its outlets across Pakistan alone. (Randhawa)

Allocation of resources is also another important decision for the

company. The company is financed completely by the CEO –Maria. Moreover,
the use of skilled labor for the job also is carefully selected to give every
single piece of work ‘the designer finish’.

Motivating and Staffing: Motivation means influencing people to accomplish

specific objectives. Staffing, on the other hand is the essence of human
resource management. It includes activities of recruiting, interviewing,
testing, selecting, orienting, training, developing, evaluating as well as
rewarding. (David, 2005) The Maria B. factory currently employs over 200
workers, all recruited after specific procedures that test there credibility to
 23

the profession. Because Maria B. wants to give the best in terms of quality
and versatility, hence every worker needs to know how to give the perfect
finishing to a Maria B. dress. Each employee is required to make a sample of
embroidery or hemming etc that s/he specializes in. In case of training, the
company’s HR manager is responsible for developing and grooming the
workers for perfection. The company believes in Equal Employment
Opportunity and every individual be it a man or a woman is selected merely
on the basis of his or her talent/skill. (Shaukat, 2009) In terms of wage and
safety issues, Maria B. conforms to the Labor Laws, be it in Pakistan or
across the borders.

In terms of motivations, the company always grants a pay rise every

month on the basis of performance. Moreover, the in lieu of employee safety,
every process in the factory is automated. Training is given to operate the
machinery. (Shaukat, 2009) The production rate of the factory is the highest
among the local designers for formal couture, prêt-a-porter lawn on a
monthly basis. (Randhawa)

Controlling: Controlling at Maria B. is done through monetary incentives

given based on performance. Employees are first trained and the standards
of performance are set. Individuals meeting these standards are considered
for the incentives. The company believes in its employees as an asset and
retaining them is essential if it wishes to avoid further training and hiring
costs. It believes employees become experienced with time and this
increases their loyalty to the company which is
very essential particularly in present times of
economic slump.

Marketing:

Marketing can be described as the process of

defining, anticipating, creating and fulfilling
customers’ needs and wants for products and/or
 24

services. This is exactly what Maria B. invested upon. The company created
the demand of branded designer clothes through awareness. Maria B. made
people shift from the traditional tailor-culture to demand more. Its heavy
marketing approach and use of appropriate mix of marketing made it
develop a brand name, an identity which no other designer had before.

Customer Analysis: It involves the examination and evaluation of customers’

needs and wants. At the time of the company’s start up, Maria B. researched
on the need of fashion industry, found a considerable target market for her
product and then launched the first Pakistani fashion house. She changed
the concept of fashion from the dress of the working women to everyday
wear. Today her clientele are spread across the globe and includes
teenagers to 70 year-olds. Maria B. takes care of the need of each and every
age group. Her contrast and selection of colors defines that each and every
line is tailored to specific clientele’s needs – wild and bold prints for the
youngsters and neutral and serene ones for adult target market. Her
customization to the needs of the customer is an important variable of
success of Maria B. (Ghafoor, Face to face with Maria B. , 2002)

Planning and Selling Products/ Services: Maria B. has the designer need of
ready-to-wear dress line for each age-group and every occasion catered
effectively to. She take care of everyone’s needs and desires and relies on
adequate promotion activities to retain previous as well as capture more
market.

Maria’s prêt line of clothing includes

formals, semi-formals, party line, Mafia line,
bridal line and her new MGirl line. Together
with this, she also started her own accessory
and jewels line in 2006.

Mafia line: this is a casual, ready to wear

line. Mafia is made mostly in pure cottons,
 25

khaddars, lawn, linens and embroidered cottons. This line is primarily day
wear which is affordable and trendy.
Semi formals: This range is primarily evening wear- slightly more formal, it
plays with exquisite embroideries in resham and crystals on chiffons, silks
and georgettes.
Formals: Perfect for wedding needs, this line consists of silks, jamahwars
and heavy hand embroideries in crystals and salma dapka (traditional
eastern embroideries)
Maria.B Brides: A purely couture line which is available only at the bridal
studio in Lahore. It is a made to order line for brides and their families.
Mgirl: this is the new hip and trendy line by Maria B. offering everything
from clothes to bags and shoes to accessories. It guarantees satisfaction to
the woman who wants it all. It caters to the fun and fearless and is certainly
not for the fainthearted.
Maria.b Jewels: Introducing semi-precious jewelry for weddings, this jewelry
in platinum coated with semi-precious stones such as topaz, tourmaline,
amethysts and zircons. (Official Facebook group of Maria B. )
According to a recent survey, Maria B. lawns have been the largest
sellers in terms of number of units in all of Pakistan. (Mansoor, 2008) All this
is the result of Maria’s daunting effort to promote her brand at every level
possible. Being a media darling, she relied heavily on print media and PR
activities for the promotion of her brand. Some the names in print media are
Dawn News, Visage magazine, Instep magazine, Fashion weekly, SHE and
others. For PR, Purple Arts have been Maria B.’s official consultants.
(Shaukat, 2009) Besides these, fashion shows, ramp events have also been
another very important source of promotion. But due to governmental
issues, these events are snubbed and not promoted to the adequate
promotional level. However, the recent Lux Style Award’s Red Carpet and
Ramp Events (Imam, 2005) and 2007 National Day Ramp Show held in
Washington D.C. (Embassy of Pakistan, 2007) served as a very important
awareness and marketing tool, provided they continue. Besides, Maria B.
 26

also holds her own fashion shows at the international level. Besides being
business-minded, Maria B. is also a socially responsible person. She holds
ramp events at the national as well as international level to help the
deprived class of the society through foundations like Kashf. In 2001, on the
launch of her Paris Collection, Maria B. held a fashion show in Marriot,
Karachi for raising money for Afghan refugees in the country. (Malik, 2001)

In a nutshell, Maria B.’s success is a fusion of excellent dress designing

as well as sophisticated promotion done nationally as well as internationally.

Pricing and Distribution: This is an important decision in marketing. As for

Maria B. this decision of pricing and distribution is a task well done. Maria B.
always wanted to make her name in the international market. Since the
launch of her fashion house, she has been constantly working to promote her
product internationally. At the national level,
Maria B. has expanded to almost all the major
cities of the country – Lahore, Karachi,
Islamabad and Faisalabad. She has plans of
opening her outlet in every city of the country.
But her main goal is to export her product
around the world. She wants to make Maria B.
the ‘brand of Pakistan’. And she has been very
successful in doing that. Within ten years of
business, Maria B. has outlets in U.K., U.S.A.,
India, and Dubai. But export being her strategic
vision, Maria B. wants to expand to other cities
of the world. “I want to send haute-couture items such as evening wear,
bridal wear etc. to UK/Europe, and then eventually to the US/Canada,
Singapore and Australia.” She remains undaunted by the global competition
and says “you have to aim high – and I do want to get to New York, Milan and
Paris one day.” (Maria B. - Fashion Designer)
 27

As for pricing, it is well adjusted to the need of the local market. Maria
B. has unit- priced her product very intelligently – neither very high nor very
low - or ‘somehow affordable’ as on critic says. (Ghafoor, 2002) She believes
her lines are of the top-most quality and hence, relies on skimming strategy
for pricing. Regarding the international market, prices are decided in
accordance with the trade regulations of the country, by adding a mark-up to
it. (Shaukat, 2009)

Market Research and Opportunity Analysis: Maria B. believes in fashion as a

constant transient change. New tastes keep on developing which gives rise
to new demands in the product market. Research hence, is always critical to
success. Maria B. no doubt has always successfully catered to the needs to
its market through research. A recent example is her launching of the new M
Girl line with its bold, wild and vibrant colors, keeping in mind the aspirations
of the young women of today. (Official Facebook group of Maria B. )

Finance/Accounting Functions:

With increasing divisional structure of the company, the need of a full-

fledged independently operating financial department was necessary. Maria
B. has fully handled that. The company has an independent accountant who
is responsible for all the financial matters of the company. Thought most of
the information was confidential, however, Maria B.’s net profit margin was
found out to be 6.77% after taxes and interest. And the company’s gross
profit margin was found out to be 98.25% which is quite operative especially
in today’s era of economic slowdown. With the pursuance of her already
implemented strategies and adequate control, Maria B. , no doubt, can
become one of the most successful brands of Pakistan.

Research and Development:

Research and Development (R & D) has become a necessity in today’s

constantly changing era. Unfortunately, at Maria B. no specific R & D
 28

department exists despite its expansion. All research decisions are made
during periodic meetings or by the CEO. However, in lieu of arising need and
global expansion, Maria B. is making decisions on having an R & D
department.

Production and Operations:

Maria B. works on all types of clothing, from cotton, linen, silk, hand
woven khaddar and organdy garments. She prefers working on colors that
are bold and vibrant. Colors and material that are bland are not her
preference. The cloth is always acquired from the textile hub, Faisalabad. In
case if the desired cloth or quality is not available, it is also imported. The
production process at the Maria B. factory is highly mechanized and up-to-
date. She does not fear local competition because her processes are highly
automated and recent. 200 employees in the factory work on monitoring
production and focusing on embroidery. Though no special MIS software is in
place, the company plans to have one installed soon as market size and
demand increases. (Shaukat, 2009) Moreover, all the activities in the
company’s value-chain is covered by the cost of sale of goods.

(SW) – INTERNAL ANALYSIS

Below are a list of all the strengths and weaknesses that are faced by
the company. The strengths are of an advantage to the company while the
weaknesses pose threat and need to be minimized and converted in order to
prove beneficial for the company.

STRENTHS WEAKNESSES
Wide product line No mission statement

Strong Brand recognition No written vision statement

Almost all brands have a niche focus Brand cannibalization

Decentralized management Lack of focus

 29

Diverse brand portfolio Lack of Brand Idea Sharing

Internal Factor Evaluation Matrix (IFE):

The IFE matrix evaluates the strengths and weaknesses of the

company in relation to the ability of its management to capitalize on the
strengths and minimize the weaknesses.

Company: Maria B.:

STRENGTHS
Weig Weighted
ht Rating Score
Wide product line 0.21 4 0.84
Strong Brand recognition 0.15 4 0.6
Almost all brands have a
niche focus 0.08 3 0.24
Decentralized management 0.06 3 0.18
Diverse brand portfolio 0.03 3 0.09
WEAKNESSES
No mission statement 0.18 4 0.72
No written vision statement 0.16 4 0.64
Weak advertisement efforts 0.05 3 0.15
Lack of brand idea sharing 0.04 2 0.08
TOTAL 1 3.54

Competitive Portfolio Matrix (CPM):

The CPM identifies a firm’s major competitors and its particular

strengths and weaknesses in relation to a sample firm’s strategic position.

Company: Maria B.

Local Competitors: Hasan Shehryar Yasin (HSY), Nomi Ansari, Rizwan

Beyg, Nilofer Shafid, Deepak Parwani.
 30

Rizwa
KEY SUCCESS n Mar Deepak Nilofer HS
FACTORS W Beyg ia B Perwani Shahid Y
Market size and growth 0.1 1.3 0.7 1.0
rate 5 10 1.5 9 5 8 1.2 5 5 7 5
0.1 1.3 1.0 1.0
Industry Profitability 5 9 5 7 5 6 0.9 6 0.9 7 5
0.1 1.0
Intensity of competitors 5 8 1.2 7 5 6 0.9 6 0.9 8 1.2
Emerging
opportunity/threat 0.1 6 0.6 5 0.5 6 0.6 5 0.5 5 0.5
0.1
Capital Requirements 5 6 0.9 6 0.9 6 0.9 6 0.9 6 0.9
0.0 0.3 0.3 0.3 0.3
Product Innovation 5 7 5 6 0.3 7 5 7 5 7 5
Product differentiation 0.1 5 0.5 6 0.6 7 0.7 6 0.6 6 0.6
0.0 0.3 0.3 0.2 0.2
Customer Loyalty 5 7 5 8 0.4 7 5 5 5 5 5
Financial Position 0.1 7 0.7 7 0.7 6 0.6 7 0.6 5 0.5
5.8
Total 1 7.45 6.85 6.5 5 6.4

SWOT Matrix:

Below is the SWOT Matrix of the Company Maria B. These are some
strategies that the company can adopt to capitalize on available
opportunities in the industry by making use of her strengths and reduce her
weaknesses and avoid threats.

STRENGTHS WEAKNESS
1: wide product line 1: No mission statement
2: strong brand recognition 2: No written vision
3: decentralized statement
management 3: Lack of brand idea
3: Diverse brand portfolio sharing
4: financial strength 4: Weak advertisement
efforts
 31

OPPORTUNTITIES 1: Expand to the northern 1: Increase print

1: Expand into emerging
economies
2: Enter new product
markets
3: Acquire more companies
4: E-commerce sales
5: Expand stand-alone
stores
THREATS
1: Competitors
2: New entrants
3: Economic recession
4: Political situation
5: International economies
and trade restrictions
6: Brand cannibalization
areas of the country S4,O2,
O5
2: Increase online selling to
Italy and France S3, S4, 04
1: Target niche markets in
the country that is not
being targeted by
competitors. S4, S1, T1
2: Advertise on brand
quality and corporate
social responsibility to
increase customer loyalty.
S2, S4, T6, T1, T2
advertisement and e-
marketing to attract
markets like India, China as
well as the local market.
W4, 04, 01
1: Work on making a
written vision and mission
statement and project it to
make the MARIA B.
identity. W1, W2, T1, T6
2: Increase collaboration,
cohesion and idea sharing
between local designers at
the platform of the
BOULEVARD. W3, W4, T3

Conclusion:

In a nutshell, Maria B. is conquering the land in the name of Pakistani

fashion with her unique and bold styles. And one day, she surely plans to
become Pakistan’s top international fashion label.

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