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Sample Project on AADEEZ Marketing Strategy |
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STATEGIC SITUATION
Trends in the fashion clothing wear market are evolving and the style mantras of the past are no longer applicable. There are new fashion icons and trends governing consumer choices now. Clothing Wear Company’s recently took drastic measures to ensure that its customers always get the cutting-edge fashion clothing that they desire, be it casual with the finest embellishments, or a profusion of delicate flowers. This resulted in emerging as a brand that caters to local needs but also finds a place for itself on the international platform.
Brand Image Neither Stone Age, nor Outfitters nor Cross Roads have been able set each
other apart and define a unique USP that could not be clearly communicated to
the customers’ mind.
Market analysis
1) Lower-Lower to Middle-Lower Class: This social class in Pakistan rarely even buys new clothing and sadly, is the biggest portion of the country’s population. They usually buy shoes that are second hand. 2) Upper-Lower to Lower Middle Class: This category of customers usually prefers to shop at non-branded shops for new clothes. They are also a major chunk of the market, but unfortunately have less buying power than they should. This class does rarely buy new shoes. 3) Middle-middle to Lower-Upper Class: Stone Age, Outfitters, Cross Road etc all cover this social class. These people often go to shop for causal clothing of good quality and reasonable prices. 4) Middle-Upper to Upper-Upper Class: This class of individuals has very narrow definitions for brands. These ladies do go shopping in Levi’s, Chen one, Nike etc. but, it depends on what is the occasion or need.
Market Situation Matrix Medium high price range
Low Priced Exclusively priced Formal wear Non-Branded 2nd hand clothing Outfitter Stone Age Casual wear Uniworth
Branded Imported Nike Chenone
Figure: Market Situation Matrix for clothing industry in Pakistan Non-Branded Shalwar Kamez
The above-mentioned matrix has been placed under two dimensions: Price and Nature of clothing. The colored portions show the range of cloths and the price range that is covered by each category of sellers.
Competitor analysis Identification of arena for definition of competitors: Product Form: This is type of competition in which the competitors are offering an identical type of product line manufactured within Pakistan at round about the same prices.
Generic Product Category Product Form Stone Age, Outfitters, AADEEZ Hang Ten Levi’s Nike Shalwar Kameez (Traditional) Uniworth Designer wear Handbags & Wallets Cosmetics Foot Wear Figure: Illustration of Levels of Competition for Clothing wear
Opportunities & Threats in the clothing industry Opportunities
Market segmentation
a) Demographically b) Geographically c) Socio-economic
Frequency of purchase
MARKET MIX STRATEGY OF LOCAL CLOTHING INDUSTRY
Product strategy
Product offering: a) Primary products: Primarily the firm is selling ladies & men’s casual wear that are manufactured and (largely) sold in Pakistan. These clothing are casual, bridal, fancy & formal by shape and design. The durability of the different models basically depends on such factors as design, material and price of the model. These shoes vary in prices but are mostly available within a range of Rs. 800 to Rs. 2000 b) Side-products: The firm also sells such products as leather bags, caps, tie, belts & cuff links. These accessories are not the firm’s core competency offering, but they help in evolving the image of the firm as a firm that offers multi-products. Just selling clothing would limit its image as a one-product company. Yet, clothing for ladies & men’s still remain the firm’s primary product.
Local branded clothing industry has entered in the international market as these clothing are sent too many countries in Europe, America and the Far East. This demand has prompted the company to look into further developing business opportunities on an international platform. Also, with the long-term fascination with the East and its traditions, international products are reflecting the design. It is only natural that export is an avenue is keen to explore.
Product Attributes:
Price Strategy The pricing strategy of the company is based on three basic considerations. They are cost considerations, markup and/or tax considerations and competitive costing considerations. Cost & Profits Considerations:
TARGET MARKET
The first thing we need to define is our target market. Different companies do select their target market according to their convenience. Aadeez target their market on the basis of demography, geographically, psycho graphically and Behaviorists.
Demography:
Age : In between 15-35
Sex : Male & Female (Specialty: male)
Education : Education had played a very vital role in brands Importance. With the help of education people are having awareness about different brands. On the basis of awareness customers are able to know the difference. Social class : Middle Class & Upper Middle Class (Focusing on Middle Class )
ACCORDING TO SOCIAL CLASS
Psycho graphically:
People would like to wear those brands, which are known and liked by other people. Most of the people buy a certain brands because it may be famous among others. In Pakistan mostly people are inspire by their reference groups. The influence is of situation in which they are buying.
The most important thing is people would love to show off themselves by using branded products. They do it basically to predict the good picture in their social circles. So our brand is trying to fill those gaps, which are needed to be filled.
Latent Motives: - Social class and community demand to wear the brands - Looking the best - Inspirational Dissociate
Manifest Motives: - To look handsome/ beautiful - To look attractive - To show your taste
Behaviorists:
Basically an attitudes leads to positive or negative behavior. Positioning is one of the factors, which can change the perception of customer. Sometimes companies do over positioning and sometimes less. In both cases the companies will have to face opportunity loss. After the research Aadeez have decided to position such attributes, which are actually present. The most difficult thing in marketing is to predict the behavior of the customer. The customer who is buying X product today has no assurity that will buy the same product tomorrow. It is very difficult to know when the needs and wants changes of the consumer. However, the change is constant. So we are trying to follow our customer like a spot light. People buy their garments according to their attitude & lifestyle. If some one is having a funky attitude then will prefer to buy cargo trousers and designed t-shirts. On the other hand if some has a decent attitude he would prefer casual wear than also prefer to buy polo shirts and plain trousers. On the basis of psycho graphic and behavior aspects products leads to latent motives and manifest motives.
MARKETING RESEARCH AND SURVEYS
A company must have one or more attribute or edge point on which they differ themselves from existing company. Our all the close competitors have some competitive edge on which they have occupied market share. When question comes to Aadeez, we have decided to do a market research and use different surveys methods to know in depth details about our competitors before disclosing our competitive edge.
We try to find out some answers of following questions:
] What sort of perception a customer has about casual designed readymade garments brands? Here basic concern was to know that what are the needs of our target class, which is still not been filled by the competitors.
] How often they switch one brand to other? Here our company wants itself to be update about the customer that what is the main reason behind switching one brand.
] Why customers are not loyal to one brand? we find some reasons that why some customers switch the brand even if he is getting satisfaction. One of the main factor we got is today the choices of customers are dynamic and can change anytime because of any reason. They go more variety and if they find a better quality then they move.
] Does brand names matter or just feature matter? Well, to look for this answer we come to know that people do prefer brand name a lot. They have become more conscious now even when they buy the bread.
] Does price has some influence on buying behavior? In todays world customer look for better quality but in cheap rates. Aadeez garments are trying to be a cost effective company to achieve a win-win situation.
Hence we all types of questions related to product, price, place and promotion before launching our brand. ] Step 1: Getting general information of our competitors regarding their 4 P’s.] Step 2: Probing the students and target market for focus groups through questionnaire.] Step 3: We conduct some interviews to know in depth details.] Step 4: We used observation method to evaluate results.
Step 1:
We collect general information about are competitors who are having the same target market like us. For example those entire casual designed readymade garments brand like outfitters, Cambridge, Chen one & Stone Age.
IN PRODUCT: We have explore their products attribute that what kind of image they want to show through their product? How they want to present themselves against their customers? What keeping in their mint they designed their product? Are they proving after sales services or money back guarantee?
IN PRICE: In this section we have checked the prices of their each outfit with different stuff in the season and than we study the pricing of their product and which pricing strategies they are following to be cost effective. All these brands have more or less the same price or some places every brand have clash with other brands.
IN PLACE: We have assessed the importance of the outlet. Each outlets importance and where they want to put their product. Where they think their most of the target market lives. Places have very important characteristics to sell out your product. It gives your brand to a specific positioning and allows only your target market to walk in your target. So believe that our product lies in shopping goods so customer takes buying decision after seeing 4 to 5 shops.
IN PROMOTION: We have analyzed the promotional tools every casual designed readymade garments brand is using. Their advertising medium, their strategies of promotion and but using what resource they advertise. We have taken in depth analysis of their each ad to figure out the massage every brand want to show through their promotion. Have they placed their billboards in clutter or differently. What sort of appealing they are using.
Step 2:
After getting all kind of marketing details of our competitors we moved to people’s perception for these brands and why they use specific brands. To figure out this we were suppose to need those respondents who totally represent our target market. For this reason we create some criteria, on the basis of that criteria we get the relevant information. FIRSTLY we find out the age group between 15-35 and preferably between 15-25, as they are aggressive users. SECONDLY they should have at least 50% formal and 50 % informal user in our questionnaire. But we find more users of casual wear than formal wear. THIRDLY they should have at least 40% of outfits from recognize brand in a certain season. Our main focus was on age group of 15-25 so our most potential target market was obviously college and university students. So we visited different fashion schools and universities to bring out our respondents for focus group.
Step 3:
We even visited some outlets and interview the customers by knowing their different views. In which we find that reason of buying varies from individuals to individuals. Some use brands due to product quality and sizes and some because it is conveniently available everywhere. Reason could be anything, which pull them to their outlets.
Step 4:
Then we observation method to know the behavior of customer that why customer prefer one brand on other brand. And which basis they made their decision so we find out that some buy because of fitting does suits other buys due to less price. All the reasons are almost overlapping one another. Some go for quality goods. Some are buying because others are using this brand. We also observe that in product if one look for variety, stiching, and style, cost so other is looking for fashion, which is IN, quality, brand name. If we talk about prices so for one may be price matters a lot but for other quality is more preferable than the price. Channels of distribution are playing important roles in selling product. Some like to buy from pace others from M.M Alam Road and DHA. People are more interested to buy those brands, which are extensively, advertise by the brand. Sometimes reference groups and billboards are promoting but sometimes word of mouth, publicity also enough.
Group 1 Group 2 PRODUCT Variety Fashion which is “IN” Stitching Quality Style Brand name (few) Cost No matter of cost
PRICE Price matters a lot Price doesn’t matter Switch to price competitive brand but quality.
PLACE Pace M.M. Alam Road
PROMOTION Reference Groups Word of mouth Billboards Magazines Billboards
Evaluative conclusions from previous findings: On the basis of previous information we have came to some of the findings according to product, price, place and promotion.
PRODUCT: It should be reasonable, societal acceptable. It should not be too much funky or not much torn jeans etc. these types of garments companies are separately available in our country but few in numbers. Moreover, people would love to have customized clothes. We also observe that some people feel pride to wear Pakistani brands while others think that imported clothes are better in quality and in price.
PRICE: While conducting our research everyone was common at one point that jeans stuff should not be so expensive because it is very difficult to judge the brand name of jeans. On the other hand same thing is not applied for t-shirts. Today people are more willing to pay for some thing, which is really a good brand. Somewhere customer sees price first and can shift from one brand to an other in order to save some money.
PLACE: Location of the outlet should be there where our target market can approach easily. Most of the buyer would like to shop from good areas like DHA, Gulberg, and Model town. The places, which are marked as well reputed.
PROMOTION: The promotion of product can be with word of mouth and reference group. It plays a vital role in brand promotion. Mostly people listen about the new brands from their friends and families. We have realized the importance of billboards when we get to know that crossroads stands first in their mind when we talk about local brands. We also got that name of brand on the t-shirts or specific designs which represent specific brand have greater attention and become the part of the consumers evoke sets.
BUDGET
Budget constraints have greater value while making promotional plan or while starting most of the business activities. Actual use of our study and marketing came here when we have to give maximum coverage of our product but within the limit budget. With heavy budgets any one could go for heavy coverage but maintaining retention of your product, attracting consumers and becoming a part of evoke set requires some more effort. It is not any assumptions so we are taking actual budgets from with we would plan to start our own brand. We have the capital of 6,000,000.
CREATE YOUR OWN
MARKETING STRATEGY PLAN OF AADEEZ
1) PRODUCT
Firstly by keeping in view our internal information i.e. budget constraint, knowledge, experience & interest we have decided to move in 3 lines of product in start - T-Shirts - Jeans - Casual jackets - Polo Shirts
Now keeping in view the external view we have come to very important dialogue which we listen in our focus group was MADE IN PAKISTAN while on the other focus group we became to know that people have this perceiving that Pakistani brand could gave much better quality in same price than any other international brand i.e. Nike, CK, JC Penney as these brands are manufactured and produced in Pakistan for the these brands company. So one can understand that the cotton quality of Pakistan is popular around the world due to its finishing & durability.
By keeping this important point of view we have decided to give people their identity. To bring out a brand which would become their identity and by using which they could proudly say to any international brand users that we have our identity; we have not following any outsiders.
However, most of our youth and casual garments user are inspire with western culture and we see every brand copying western culture in their new designs.
After Sep 11, the world has changed. So its time to represent our identity to the world and create a soft image of Pakistan in the mind of the peoples. By maintaining youth’s pride and quality of design we have decided to give them a totally Pakistani brand. To show people their ideas, life style, attitude, love, care & humor in such a attractive way that they become to know we are not less with any one and our rich heart people have power to attract any one.
For achieving this purpose we have decided to show our ideas, life style, attitude, love, care & humor related photographs in a abstract art style on the T-Shirt; as we know that people are more concern with the designs on T-Shirts. These designs become the recognition of any brand and as well the recognition of any user.
Today is 21st century and everyone is busy in his/her life. Life of today’s world is full of tension, fear, worries & most important we have no time to our love ones. So we will try to give back the smiles on the faces of the people by introducing “HUMOR TEES”. We know that bring a smile on the faces is the most uphill task & difficult in this world. But as we are looking to make our own identity so we will try to make people smile. Our motto for this purpose will be KEEP SMILING.
Moreover in our second product i.e. Jeans, people are not more concern with the recognition. So for the Jeans we would be follower, we would move forward with the fashion in the market as our consumers want the same.
2) PRICE
After getting insight of most of our respondents we have came to this point that our price should be comparatively less than other brands. There are some people who don’t care about the price as you found in focus group 2; but most of the people who like to use brands but can’t afford it. Further as we are positioning totally our product to students so it is better to have comparatively less price to attract them. Secondly if we see our internal constraint of budget, it is better for us to start with low price brand. Further we would move forward to high price brand in future with other name on their lips which have high price. Low price brands user could never be your loyal customer .
3) PLACE By keeping in view our budget and customer, we would initially plan out outlets Pace; Gulberg and one shop in Y-Block (Defence).
As we come to know that most of the our target belongs to Gulberg, Garden Town & Defence and so these would be good market for us and by keeping in view the price of our product it is better to be in Pace where we would have plenty of customers to see our products.
4) PROMOTION
When you have limited resources and you have to bring up a big change than its time to make your IMC program so efficiently that it would reduce cost and increase synergetic effect of your product. As we already know that it is not possible that all of the 6 promotional tools will be applicable to every product and sometimes even when it was applicable; marketing manager have to make some trade off according to the situation. Bottom line is to create synergetic effect of your product in front of your target market. Below are some of promotional tools we have used in our IMC plan to create synergetic effect.
- ADVERTISING:
Advertising is the most expensive promotional tool among other but luckily not any single of our competitors is using the expensive medium of communication. Which means that no one is using t.v. or ratio as their media vehicle.
Right now all of the casual designed readymade garments brands are using magazines and billboards for their advertising purpose. In the case of magazines there are many choices came in any marketer’s mind because in Pakistan there are lots of magazines of fashion. However, most of the fashion magazines release after quarter and monthly basis.
MAGAZINE: One magazine which give full coverage to our fashion industry is SUNDAY of Daily Times. If you are buying Daily Times new paper, this magazine will be delivered to you every Sunday free of cost with the new paper. Even I Regularly check out this Sunday magazine of daily times. On the other side I don’t buy specifically any fashion magazine as these are too costly.
Secondly, I will like to advertise in Spider magazine as it bought by the students so keeping in view the target market its better to advertise in this magazine as well…
BILLBOARDS: Billboards however, create attention of the customer but right now as we have judged from our focus group that students does not much retention of these billboards. They certainly have effect on the customer but we would use billboard in a later stage. However, for billboards design we will use 3 dimensional strategy witch means that we will display our products in 3 sided view (front, back & side poss.)
FLEX SIGNS: We would use Flex sign within the pace to advertise our product. This would be less costly and secondly it would be only for those people who have came into the Pace and Y- block market. they could easily catch up our shop to look out the product.
CATALOGUE: In case of our products fashion catalogue is of great importance. This catalogue advertise itself to customer. Catalogue shows out the latest seasonal outfits so that it could attract the customer and show the product. Every brand has it’s positioning and different themes while making every season’s catalogue. But most of the brands try to copy western culture in their catalogue’s photo shoot and inspire the customer.
- SALES PROMOTIONMother & Father is the most pure blood relation in this world. So to make this relationship stronger we will offer special discount & offer on FATHER DAY & MOTHER DAY. Secondly, we will offer special discount on message tees on the special days i.e. POPULATION DAY, WOMEN’S DAY, and EARTH DAY etc to give awareness to the people.
We have also decided to visit the universities, give students a brief and short awareness of our product and than give the trend setters a free T-Shirts. This T-Shirt would be showing our brand name clearly and artistically which would create a new topic to talk about in certain communities. Through these free T-Shirts we would be able to create a buzz in the market. Our main theme of IMC plan is to create buzz in the market, which is considered as one of the best way of marketing.
INTERNET & INTERACTIVE MARKETING:
In Pakistan however internet marketing is not much successful but as the technology is changing people are moving towards their ease and started to think about internet marketing. It is a great source of marketing which is used effectively to provide solution to customer than it would greatly check out the seasonal outfits on it and chose its favorite to move forward.
However, I will open a online store on EBAY. Where international & national buyer can visit our store online and can buy the items online worldwide. This will create a good image about our company and will also make a soft image of Pakistan. Interesting section in our website is the new “New Arrival” in which customer would become to know upcoming season’s fashion outfits. In our new arrival section we have given some samples of the T-Shirts to give idea to customers further we would issue our product’s profile with complete detail as it came out of factory, Second way is to join people socially so that they would feel this website as their normal use. For this purpose we have decided to launch online community in our website but after checking out specific daily visits at our website.
- DIRECT MARKETING
Right now we are directly marketing with the students in universities as it has discussed in sales promotion’s section hat we would be visiting different universities and giving awareness of our product and than combining our direct marketing with sales promotion to give them free shirts as well. Second way of direct marketing which we would do in a near future is that when some one visit our website or become the member of our social community than we would keep him update with the latest fashion upcoming and with the latest outfits coming out in next season.
MASSAGE AND HUMOR TEES
CLASSIC AND MUSCLE FIT Other Desc: Distress printing
CLASSIC AND MUSCLE FIT Other Desc: Distress printing
CLASSIC AND MUSCLE FIT Other Desc: Distress printing
CLASSIC AND MUSCLE FIT Other Desc: Distress printing
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