marketing full n final.docx
TRANSCRIPT
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Table of Contents2…………………………………………………………………………….Proposed Questions for Qualitative Research
11………………………………………………………………………………………………………………………....…Jeans Industry
12……………………………………………………………………………………………………Level of Market Segmentation
17……………………………………………………………………………………………………………………….…Brand Awareness
18……………………………………………………………………………………………………………………………..Business
Plan22………………………………………………………………………………………………………………………………Pest
Analysis
30…………………………………………………………………..………………………………………Strenghts-Swot Analysis
33………………………………………………………………………………..………………….Weakness-Swot Analysis
Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but we
don’t want to confuse the customer about what line of business we are in..................................34
Opportunities - SWOT analysis sample........................................................................................34
Threats..........................................................................................................................................35
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Proposed Questions for Qualitative Research
1. Which Pakistani cultural dress you like most or influence you?
Punjabi
Sindhi
Balochi
Pathani
Kashimiri
59%
23%
7%
7%
4% 0%
Which Pakistani cultural dress you like most
or influence you?
PunjabiSindhi
Balochi
Pathani
Kashimiri
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2. Do you prefer purchasing jeans?
Online
Traditional brick
Mortar locations
11%
25%
64%
Do you prefer purchasing?
Online
Traditional brick
Mortar locations
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3. How would you define premium jeans?
Comfort, Quality
Stitching, Style Fashion, Style symbols
Price, Quality
50%
10%
10%
30%
How would you define premium jeans?
Comfort, Quality Stitching, Style Fashion, Style symbols Price, Quality
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4. Which kind of dresses you like most?
Formal
Casual Both
Don't bother
15%
55%
15%
15%
Which kind of dresses you like most?
Formal Casual Both Don't bother
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5. What factors determines how much you pay for jeans?
Quality
Price Variety
All of them
69%
4%
13%
14%
What factors determines how much you pay
for jeans?
Quality
Price
Variety
All of them
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6. What type of person would most influence you most to buy jeans?
Peers
Celebrities Models
Sports celebrity
10%
40%
30%
20%
What type of person would most influence
you most to buy jeans?
Peers Celebrities Models Sports celebrity
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7. What are your perceptions of current clothing advertisements are?
Very Good
Good Neutral
Disagree
35%
25%
30%
10%
What are your perceptions of current
clothing advertisements are?
Very Good Good Neutral Disagree
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8. Name a jeans advertisement that is memorable to you?
Levi's
Stoneage
Denim
Outfitters
Calvin Klein
77%
5%
3% 10%5%
Name a jeans advertisement that is
memorable to you?
Levi's Stoneage Denim Outfitters Calvin Klein
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9. Current trend?
Need to be change
Not to be change
Need to be change
40%
Not to be change
60%
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 keyprinciples concerning consumer behavior have to be fully grasped and addressed. As well as
producing a range of new, exciting and quality garments, the firm will need to ensure that
its products are cleverly and thoughtfully marketed to the appropriate consumer groups.
The importance of consumer behavior in deriving this strategy. Look at the importance of a
clear and up to date comprehension of the factors that affect consumer behavior, paying
particular attention to the key role that perception will play in forming consumer's attitudes
towards the new range of designer jeans. Continue on to show how favorable perceptions
about brands identity will have a positive effect in raising consumer motivation to purchase
a product from their range.
The fashion industry at this time; a time of increasing disposable incomes and incidence of
recreational shopping, is intensely competitive. We can draw on many examples to highlight
the point that; companies who have established a strong and clear brand image, have
tended to command a larger market share than those companies who's image is either
unfavorable, for example old fashioned, or unattached to specific and clear values.
Establishing a strong and distinguishable brand image for the 'Anti-Fit' range of jeans is the
central idea behind marketing strategy for breaking into the competitive market and
ultimately gaining a favorable share of the market for designer jeans. Creating the right
brand image is largely dependent upon being in tune with the mindsets, beliefs, values and
aspirations of the modern, well-informed consumer. Moreover ensuring that the consumerperceives the firm to be in tune with their way of thinking and holding similar values
centrally to the brand identity will be the key to ensuring marketing success.
The purchase of a pair of designer jeans may be considered neither a high involvement nor
low involvement purchase, where involvement may be thought of as the degree of
perceived relevance and personal importance accompanying brand choice. Potential customers within such a competitive market have a number of factors influencing
their purchasing behavior. Consumer buying is motivated by something more thanawareness; it depends on the consumer's needs and drives, tastes and aspirations,
attitudes, personality and social environment. Products are not only purchased for their
functional values but also, for the social and psychological meanings they convey. The
purchase of a pair of jeans is linked, to what extent is dependent on the individual, to the
formulation and shaping of a consumers self-image. Purchasing a pair of jeans will to some
degree shape a person's self-image and the way others may perceive them. As marketers, a
company must align the consumer's self-perception and the image they intend to project to
others, with the attributes and values they perceive to be attached to the company and its
associated products.
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Levels of Market Segmentation
Buyers have unique needs and wants, each buyer is potentially a separate market. Ideally,
then, a seller might design a separate marketing program for each buyer. However,
although some companies attempt to serve buyers individually, many others face larger
numbers of smaller buyers and do not find complete segmentation worthwhile. Instead,
they look for broader classes of buyers who differ in their product needs or buying
responses. In a jeans industry jeans mostly used by youth so all the companies making
segments according to their need and wants.
Mass Marketing
Companies have not always practiced target marketing. In fact, for most of the 1900s, major
consumer products companies held fast to mass marketing—mass producing, mass
distributing, and mass promoting about the same product in about the same way to all
consumers.
The traditional argument for mass marketing is that it creates the largest potential market,
which leads to the lowest costs, which in turn can translate into either lower prices or higher
margins. So that’s why there is lot of potential in jeans industry to grow till maturity. Now
there is a trend which showing that the market will split more till maturity and many other
competitors will come in this industry with a new style and can earn. The jeans industry has
to serve here for working women, students, and having a important role in today’s
modeling. Today, marketers find it very hard to create a single product or program that
appeals to all of these diverse groups.
The proliferation of distribution channels and advertising media has also made it difficult to
practice "one-size-fits-all" marketing. Today's consumers can shop at megamalls,
superstores, or specialty shops; through mail catalogs or virtual stores on the Internet. They
are bombarded with messages delivered via media ranging from old standards such as
television, radio, magazines, newspapers, and telephone to newcomers like the Internet,
social networking and e-mail.
Segment Marketing
A company that practices segment marketing isolates broad segments that make upa market and adapts its offers to more closely match the needs of one or more
segments. Thus, Jeans making companies or you may say industry markets to a variety of
segments which they are serving—Students, Youth, Casual dressers lovers, Business
travelers, Working females and others—with packages adapted to their varying needs. Jeans
has designed specific stuff and style for different income and age groups. In fact, it sells
models for segments with varied combinations of age and income. For instance, Jeans
designed straight, simple and loose fit for older, higher-income consumers.
Segment marketing offers several benefits over mass marketing. The company can market
more efficiently, targeting its products or services, channels, and communications programstoward only consumers that it can serve best and most profitably. The company can also
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market more effectively by fine-tuning its products, prices, and programs to the needs of
carefully defined segments. The company may face fewer competitors if fewer competitors
are focusing on this market segment.
Niche Marketing
Market segments are normally large, identifiable groups within a market—for example,
luxury jeans buyers, casual jeans buyers, quality jeans buyers, and economy jeans buyers.
Niche marketing focuses on subgroups within these segments. A niche is a more narrowly
defined group, usually identified by dividing a segment into sub segments or by defining a
group with a distinctive set of traits who may seek a special combination of benefits. For
example, the quality jeans segment might include light-weight, nice stuff and support their
personality what they want to be look. The casual jeans subsegment might be further
divided into standard (as served by Outfitters and Stoneage) and luxury jeans (as served by
Levi’s and Wrangler) niches.
Whereas segments are fairly large and normally attract several competitors, niches are
smaller and normally attract only one or a few competitors. Niche marketers presumably
understand their niches' needs so well that their customers willingly pay a price
premium.Niching offers smaller companies an opportunity to compete by focusing their
limited resources on serving niches that may be unimportant to or overlooked by larger
competitors. However, large companies also serve niche markets.
In many markets today, niches are the norm. As an advertising agency executive observed,
"There will be no market for products that everybody likes a little, only for products that
somebody likes a lot." Other experts assert that companies will have to "niche or beniched."
Micromarketing
Segment and niche marketers tailor their offers and marketing programs to meet the needs
of various market segments. At the same time, however, they do not customize their offers
to each individual customer. Thus, segment marketing and niche marketing fall between the
extremes of mass marketing and micromarketing. Micromarketing is the practice of tailoring
products and marketing programs to suit the tastes of specific individuals and locations.
Micromarketing includes local marketing and individual marketing.
ketsSegmenting Consumer Mar
There is no single way to segment a market. A marketer has to try different segmentation
variables, alone and in combination, to find the best way to view the market structure. The
major variables that might be used in segmenting consumer markets. Here we look at the
major geographic, demographic, psychographic, and behavioral variables.
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Geographic
Density Urban, suburban, rural
Demographic
Age 12 –1
Gender Male, female
Family life
cycle
Young, single; young, married, no children; young, married with children; older,
married with children; older, married, no children under 18; older, single; other
Income Under 10,000; 10,000 –20,000; 20,000 –30,000; 30,000 –50,000; 50,000 –100,000;
100,000 and over
Occupation Professional and technical; managers, officials, and proprietors; clerical, sales;
craftspeople; supervisors; operatives; farmers; retired; students; homemakers;unemployed
Education Grade school or less; some high school; high school graduate; some college;
college graduate
Psychographic
Social class Lowe
middl
upper
Lifestyle Achievers, strivers, strugglers
Personality Compulsive, gregarious, authoritarian, ambitious
Behavioral
Occasions Regul
Benefits Quality, Comfort, Economy
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Evaluating Market Segments
In evaluating different market segments, a firm must look at three factors: segment size and
growth, segment structural attractiveness, and company objectives and resources. The
company must first collect and analyze data on current segment sales, growth rates, and
expected profitability for various segments. It will be interested in segments that have the
right size and growth characteristics. (Appendix 1 discusses approaches for measuring and
forecasting market demand.) But "right size and growth" is a relative matter. The largest,
fastest-growing segments are not always the most attractive ones for every company.
Smaller companies may lack the skills and resources needed to serve the larger segments or
may find these segments too competitive. Such companies may select segments that are
smaller and less attractive, in an absolute sense, but that are potentially more profitable for
them.
The company also needs to examine major structural factors that affect long-run segment
attractiveness. For example, a segment is less attractive if it already contains many strong
and aggressive competitors. The existence of many actual or potential substitute
products may limit prices and the profits that can be earned in a segment. The
relative power of buyers also affects segment attractiveness. Buyers with strong bargaining
power relative to sellers will try to force prices down, demand more services, and set
competitors against one another—all at the expense of seller profitability. Finally, a
segment may be less attractive if it contains powerful suppliers who can control prices or
reduce the quality or quantity of ordered goods and services.
Even if a segment has the right size and growth and is structurally attractive, the company
must consider its own objectives and resources in relation to that segment. Some attractivesegments could be dismissed quickly because they do not mesh with the company's long-
run objectives. Even if a segment fits the company's objectives, the company must consider
whether it possesses the skills and resources it needs to succeed in that segment. If the
company lacks the strengths needed to compete successfully in a segment and cannot
readily obtain them, it should not enter the segment. Even if the company possesses
the required strengths, it needs to employ skills and resources superior to those of the
competition in order to really win in a market segment. The company should enter only
segments in which it can offer superior value and gain advantages over competitors.
Selecting Market Segments
After evaluating different segments, the company must now decide which and how many
segments to serve. This is the problem of target market selection. A target market consists
of a set of buyers who share common needs or characteristics that the company decides to
serve.
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Target Marketing
Smart targeting helps companies to be more efficient and effective by focusing on the
segments that they can satisfy best and most profitably. Targeting also benefits
consumers—companies reach specific groups of consumers with offers carefully tailored to
satisfy their needs. However, target marketing sometimes generates controversy and
concern. Issues usually involve the targeting of vulnerable or disadvantaged consumers
with controversial or potentially harmful products. There are lots of local companies of
jeans who are serving small segments and the reason behind that is they have less
resource. Jeans companies are targeting Lower lowers, upper lowers, working class, middle
class, upper middles, lower uppers, upper uppers. In extent to these students, working
women, business class is targeting. Thus, in market targeting, the issue is not really who is
targeted but rather how and for what. Controversies arise when marketers attempt to
profit at the expense of targeted segments—when they unfairly target vulnerable
segments or target them with questionable products or tactics. Socially responsible
marketing calls for segmentation and targeting that serve not just the interests of the
company but also the interests of those targeted.
Positioning for the competitive advantage
Once a company has decided which segments of the market it will enter, it must decide
what positions it wants to occupy in those segments. A product's position is the way the
product is defined by consumers on important attributes—the place the product occupies in
consumers' minds relative to competing products. Positioning involves implanting the
brand's unique benefits and differentiation in customers' minds. Consumers are overloadedwith information about products and services. They cannot reevaluate products every time
they make a buying decision. To simplify the buying process, consumers organize products
into categories—they "position" products, services, and companies in their minds. A
product's position is the complex set of perceptions, impressions, and feelings that
consumers have for the product compared with competing products. Consumers position
products with or without the help of marketers. But marketers do not want to leave their
products' positions to chance. They must plan positions that will give their products the
greatest advantage in selected target markets, and they must design marketing mixes to
create these planned positions.
Companies PositioningLEVI’S Embrace your shape
LEVI’S
for women
Lighten up
Stone age
All your fashion needs
sorted.
Outfitters
Passion
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Choosing a Positioning Strategy
Some firms find it easy to choose their positioning strategy. For example, a firm well known
for quality in certain segments will go for this position in a new segment if there are enough
buyers seeking quality. But in many cases, two or more firms will go after the same position.
Then, each will have to find other ways to set itself apart. Each firm must differentiate its
offer by building a unique bundle of benefits that appeals to a substantial group within the
segment.
The positioning task consists of three steps: identifying a set of possible competitive
advantages upon which to build a position, choosing the right competitive advantages, and
selecting an overall positioning strategy. The company must then effectively communicate
and deliver the chosen position to the market.
BRAND AWARENESS
People now having a more knowledge about what to wear and when to wear. The events
are upcoming they are planned about wearing. People know about the brands Levis,
Outfitters, Denim, Calvin Klein and Stone Age.
BRAND COMPETITORS LISTS
Levis
Outfitters
Denim
Calvin Klein
Stone age
Wrangler
Co 81
Marks & Spenser
Blue horbor
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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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Developing and Marketing Products
Step 1
Source your denim and accessories such as rivets and zippers, using market research to plan
which textures, washes and colors of denim will populate your product line. Determine what
types of clothing and accessories you will sell, what sizes and fits you will make and consider
taking custom orders. Denim varies in weight from 10 to 14 ounces per square yard,
according to the website Apparel Search; use denim that is 12 to 14 ounces per square yard
to make jeans and jackets, and lighter denim to make shirts and blouses.
Step 2
Create your product line and feature it in your storefront. Custom, handmade denim
clothing and accessories can be difficult and time-consuming to produce, so hire employees
with experience and training in designing and merchandising clothing. Employees with
denim design talent could help you expand the company's product line by adding their own
designs to the store and could also increase the number of customers your company can
serve.
Step 3
Market your product line by advertising directly to your target audience in the media
through which they consume advertising. Market your denim as a more affordable andmore fashionable alternative to mainstream choices, detailing your tailoring skills, options
for customization and the quality of the denim your company uses. If you intend to appeal
to college students, for example, approach them in person and avoid television, radio and
print advertising campaigns because, according to Boston.com, that demographic is
becoming increasingly difficult to reach through conventional means.
Step 4
Seek opportunities to make your brand unique, then incorporate those ideas into yourbusiness plan. Consider making a popular custom-made item a part of your regular product
line, for example, or associate your brand with a recognizable style, such as jeans without
pockets or denim skirts with zippers. Keep your business viable by creating and selling
denim products that are unmistakably yours, but be prepared to change with the desires of
your customers and the fashion industry as a whole.
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The Marketing Environment
Today’s market is characterized by highly competitive organizations which are all
vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own
competitive edge to be able to survive and be successful. Strategies are carefully planned
and executed to gain the ultimate goal of all: company growth. However, external factors
are not the only elements which influence growth. There are also internal factors,
components working within the organization which shape the direction of the company.
The company’s marketing environment influences the business organization directly.
This includes the suppliers that deal directly or indirectly to the people within the business
organization, the consumers and customers who demand for the products or services
offered by the company, and other local stakeholders who influence the decision-making
process or affected by the business decisions made by the business firm. As such, the
marketing environment of a particular company describes the relationship between firms
and the driving forces that control this relationship who are members of a specific industry
wherein the relationship is local and the firm may exercise a degree of influence.
The Role of Marketing Research in Decision Making Process
The structured method of marketing research has enabled countless of producers
and consumers alike to better understand their relationship. Generally, the role of
marketing research in every business environment is to provide information that are
necessary in the decision making processes for the development and benefit of the
company.
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There are numerous studies conducted to verify the potential effects of information
in business environment obtained through marketing research. The value of information in
decision making is proven especially in enhancing performance, reducing uncertainty, and
processing business plans. The information collected through marketing research, may it be
qualitative or quantitative in nature is essential in the overall being of the company.
Furthermore, there are other several experimental studies that have proved that
marketing research is indeed an important element in companies' success formulae. give
evidence that the level of use of marketing research is positively related to company
effectiveness. Every effort exerted in the research process is justified when the by-product is
the optimal performance of the business. In the same way, those more successful
companies carry out marketing research, in sharp contrast to less successful companies.
Focusing on small firms’ environment, found a positive relationship between the use of
environmental information and small firm financial performance.
Decisions based on marketing research information are an important factor in
overall business success. These studies show the linkage of marketing research and
company’s performance. Again, the role of marketing research in the decision making
process of the company is to provide imperative information that is very vital in the growth,
success and survival of the marketing course of the product in relation to the business as a
whole.
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- tax policy
- employment laws
- political stability
- environmental regulations
- trade and tariff restrictions
Economic Aspects
It is important that a certain company must also give enough attention to its
economic stability. The economic goal of a certain industry is like an axis in which other
objectives or goals are revolving. The economic factor involves the context in which an
industry belongs, i.e. the configuration of the competition in which a company operates the
active demand of the products, general economic condition of the nation or region,
conditions in relation with other industries, and the situation of the resource markets.
- economic stability
- economic growth
- interest rates
- inflation rates
Socio-cultural Sector
Society and culture is an important factor that must be given emphasis by any
business, specifically those who are operating in the global arena. It is important that the
company must operate in compliance with the social systems in order to gain good
reputation and effective public image. On the other hand, cultural aspects is equally
essential, in order to understand the various needs of different individuals that belongs to
different cultures.
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- population growth rate
- age distribution
- career attitudes
- consumer behavior
- religion and culture itself
Technological Aspects
The complexities of achieving business success through increased efficiency,
effectiveness and competitiveness, combined with innovative applications of modern
technology, has heightened the awareness of both technology and business managers
towards more strategically oriented approaches for planning and management of any
industry. Hence, it is important that a company must be able to give consideration to the
technological aspects.
- distribution and communication channels
- technology incentives
- automation
- rate of technological change
- environmental and ecological aspect
- barriers to entry
- production level
- outsourcing decisions
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Emphasis on Economics
The marketing concept has been defined as ‘the key to achieving organizational goals’
and the marketing concept rests on ‘market focus, customer orientation, coordinated
marketing and profitability’. In a profit making business the firm obviously has to try and
achieve this level of customer satisfaction as a way of staying ahead of the competition and
making a profit. Traditionally, marketing has been utilized by the private sector in decisively
increasing the capabilities of an organization. Marketing can be considered as one of the
most important element underpinning successful business creation. The importance of
marketing concept incorporates oft-repeated elements such as: customer orientation;
integrated marketing efforts; and resultant profitability.
In marketing operations, the marketing manager must have the ability to
strategically decide the most essential external environment factors to be monitored in
order to sustain the competitive advantage of the company in the future. In the case of ABC
Clothing Company, the marketing manager of the company should give focus on the
economic aspects. As mentioned, economic aspects includes the possible conditions needed
in order to gain competitive advantage within the marketplace. Economic sectors include all
the possible factors that drive an industry to know where it belongs such as the condition of
its competitors, entire economic situation of the region and nation in which the company is
operating. In this particular case, ABC Clothing Company is operating in different areas or
regions of the world, including Asian market.
In this manner, the marketing manager, should be able to consider economic sectors
in its monitoring to ensure that ABC Clothing Company adheres to all elements of economic
factors of the external environment. Just like what big as well as small multinational
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companies that are operating globally. Herein, the marketing manager should be able to
monitor the economic status of a certain country where the company is currently operating
or the economic status of a country in which the company would plan to operate in the
future. It is said that if a country with a good economic status or which is economically
stable, there is possibility to gain more customers which would avail the quality products
offered by the company.
Industry Analysis
Companies in the industry sell to a few large customers/buyers. Likewise, the
industry also displays an apparent impracticality for customers/buyers to switch from one
source of supply to another. This is reflected by the cost of raw materials as well as the costs
of operations. Moreover, the products offered by companies in the industry are essentially
interchangeable and indistinguishable. The product could also be considered as a
commodity for the retail industry especially in the clothing business. Moreover, the industry
shows that the cost of the product and service represents a relatively large percentage of
the buyer’s and customer’s total cost. Nonetheless, the customers could if desired
backward-integrate specifically by acquiring a company in the industry to which is included.
The following are micro-environmental aspects that are necessary to consider.
Suppliers’ Power
Many suppliers provide raw materials to the industry. Moreover, companies in the
industry are not likely to backward-integrate. On the other hand, it could also be posited
that the companies in the industry are the primary source of revenues for the suppliers. This
makes the competition among suppliers more rigid. Likewise, if raw -material costs get out
of line, companies in the industry would be able to have a hard time using a different type
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of raw material to produce the product. The industry is also characterized with the quality
and costs of raw materials having a significant impact on the quality and price of the
products and services produced by the industry.
Moreover, the raw materials provided by suppliers are essentially interchangeable
and indistinguishable. The raw materials are essentially commodities. Likewise, in an
industry where loyalty is also considered necessary, there is also the possibility for the
suppliers to forward-integrate.
Rivalry Among Competitors
Companies in the industry considered to be diverse in their history and culture and
in how they do business. Moreover, the product/service sold by the industry has low
storage costs or is not perishable. Nonetheless, the industry is experiencing fast market
growth.
The products offered by companies in the industry are essentially interchangeable
and indistinguishable. It has also been established that the product provided by the
company is a commodity to a major part of its stakeholders. Moreover, it also shows that
there are considerable numbers of large competitors that dominate the industry.
In the said industry, companies in the industry have high fixed costs and spend a lot
of money on plant and equipment. Likewise, production capacity, to be economically
feasible, must be done in large, expensive increments. Significant barriers as well hinder
companies that want to exit the industry. These include regulations, labor agreements, costs
of closing facilities, and the absence of secondary market for assets. In addition, it could also
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be observed that staying in the industry is of great strategic importance to companies in the
industry, probably because they have nowhere else to go.
Threats of New Entrants
The economies of scale play a significant role in the cost of produce the product and
service. Companies in the industry have low fixed costs and spend relatively little on plant
and equipment. Moreover, competitors in the industry are not likely to cut their price to
defend their market position. In an industry experiencing fast market growth, patents,
proprietary knowledge, and brand reputation are also considered as barriers for companies
entering the industry.
Threat of Substitute Products
The price of substitute products is more expensive. This provides the industry a great
following. Moreover, the quality, features and benefits of substitute products are generally
lower.
Environmental Impact of Jeans
Like most industries, jeans are not environmentally friendly. All industries have some form
of waste, whether it be from excess materials, the process of manufacturing said product,
the energy that is used to power the machinery or the amount of water needed for
manufacturing; all industries give off harmful waste or take too much from the earth.
Cotton, mainly imported from the Middle East, is the main ingredient in producing jeans,
which is what jeans are made of. Cotton is a big contributor to water consumption in the
jean industry. The amount of cotton needed to make one pair of jeans is on average 1,500
gallons and the machinery used to harvest the cotton consumes one pound of oil per
harvest. The resulting cotton yarn is processed using starch, paraffin and sometimes caustic
soda to provide a “worn” look. Starch is biodegradable but can be harmful to the earth
when dumped in the water supply, since the microbes that cause the starch to biodegrade
consume oxygen. If the starch waste is dumped into waterways, it may deteriorate theoxygen level and pH of streams and waterways
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Swot Analysis
SWOT Analysis Examples: Strengths
Possible Strengths ResponseIs it a
strength?
Tangible Strengths
Large outlets of all brands. Shop fittings
and stock with
computer and
software.
Yes
Levi's is market leader and trend setter. Can pick and
choose what
styles to
stock.
Yes
All brand sin jeans industry which are multinationalbrands they have sufficient financials in their assets to
increase.
Having fundan expansion
to a larger
footprint
store.
Yes
Due to having a local manufacturer in market so it's a
advantage for jeans industry.
No, rents are
all pretty
standard, you
can save on
rent but loose
the foottraffic, so it is
all relative.
No
Using superior technology in business from software to
stitching.
Yes
High volume business. We do sell a
lot, Our
product is
high quality,
high margin
and lowvolume in
comparison
Yes
Can scale up your volume Orders are
placed in
advance, shop
size having a
limit to fulfill
these orders.
Yes
Intangible Strengths
Strong recognizable brands like Levi's, Outfitters,Denim, Stoneage , Calvin klein.
The brandspace is
Yes
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becoming
cluttered with
more and
more
recognizable
brands.
Have good relationship with customers. (Goodwill) We have a
good
connection
with our
customers,
our email list
grows and
many
customers
advise they
were referred
to us by their
mates.
We get a lot
of repeat
customers.
Yes
Have strong relationships with suppliers Though they
have just
another
supplier to
them. They
are able to
differentiate
from our
competitors.
They have
long term
agreements in
place with
somesuppliers to
be their sole
representative
in this region.
Yes
Positive relationship with employees Yes No, our
competitors
also have
good
employee
relations
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Brand names are patents and copyright in that
industry.
Yes Yes
Have a proven advertising process that works well. Email news
letter with
specials and
new stock,
seems to work
for retaining
customers.
Most new
customers
were
attracted to
the shopping
complex.
Yes
Innovative business In sales and
relationship
building.
Yes
Other Strengths
All big markets in Pakistan outlets are there Current
location in the
center has
high traffic, in
an area with
several other
shops
targeting the
same market
which draws
people to the
area
No
Summary
The key strengths
1. Unique brands protected by sole supply agreements
2. Successful relationship marketing, and
3. Innovative sales techniques
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SWOT Analysis Examples: Weaknesses
Possible Weaknesses Response Is it a Weakness?
Tangible Weaknesses
Product line too narrow Maybe, we only sell a few
of brands of men clothing,we could stock more
accessories, but we don’t
want to confuse the
customer about what line
of business we are in.
Maybe
High overall unit cost relative
to your competitors.
Local brands Maybe
Intangible Weaknesses
Marketing plan can fail to meet
objectives
On some certain issues. Yes
Managers inexperienced. Yes Yes
Lack industry knowledge. Yes, maybe
lack innovative skills. Yes Maybe
Summary
The key weaknesses
1. Small store size and inability to find an expansion, resulting in stocking a
limited product range
2. Manager has limited industry experience and industry knowledge
SWOT Analysis Examples: Opportunities
Possible Opportunities Response Is it an
Opportunity?
Industry OpportunitiesCan expand product range. Yes, there are no contractual
restrictions to adding products to the
store.
Yes
Can expand into supplier's
field.
Yes, the skills to establish an import
business
Yes
Can expand customer
base(Geographically or
through new products)
Maybe, through internet sales and mail
order, maybe open another location
Yes
Have placid competitors. Yes, there is not a lot of competitive
advertising in our niche, and price is notso much of an issue to our customers
Yes
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Export opportunities. Jeans are import Yes
Total market products
grow.
Yes, but not significantly Yes
Macro Opportunities
Economic outlookfavorable
No, however this may play favorably tobusiness as our target market might
postpone larger expenses as a result a
greater share of purse may be allocated
to clothing – this is yet to be proven.
No
Favorable cultural shifts
that will benefit.
Due to increases in housing prices our
target customer has opted to postpone
taking on longer term debit. Instead to
remain in the “nest” for longer. This
trend increases their customer life for
our products.
Yes
Any changes in the use of
technology that business
can utilize such as
Ecommerce or Internet
sales?
Use of internet to increase marketing
and online sales.
Yes
Strengths - SWOT analysis
First, focus on Strengths. What within your marketing strategy is an advantage for you? Let'ssay, for instance, that you are already doing well with your particular brand in that you are
functioning at number two. You also have an advantage over other competitors in that
customers are very loyal to your brand so that you're not likely to lose that base. We have a
good connection with our customers, our email list grows and many customers advise they
were , Due to having a local manufacturer in market so it's a advantage for jeans industry.
Weaknesses - SWOT analysis
Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but
we don’t want to confuse the customer about what line of business we are in.
Opportunities - SWOT analysis
What opportunities does business have? Company needs to place emphasis on domestic job
growth. You need to improve "green" jobs, and environmentally friendly practices. You can
do this by manufacturing domestically and stop sending jobs overseas. Can expand product
range. Can expand into supplier's field. Can expand customer base(Geographically or
through new products). Export opportunities. Total market products grow.
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Threats
Threats do industry face? Clothing is more expensive because of brand name marketing.
This could reduce customer in the future. Clothing does not target teenagers. Teenagers
turn into adults and they may forget your name. External competion is making headway.