STEPH G Jeans

“Fashion at its Revolution”

Product/Brand Idea:

This brand is launched to actually remove the strong

perception of the people that Pakistani goods are of low quality

and outdated fashioned.

The Institute of Management Sciences

Group Members:

Umer Farooq (083314)

Mohsin Ihsan (083334)

Rizwan Sarwar (083333)

Submitted To:

Sir Aitzaz

Submission Date:

16/11/2009

Acknowledgment

We thanks to Almighty who made us able to complete

this task in the obedience of Sir Aitzaz.

We thank our teacher who made us able in this field of business of

taking decisions and analyzing the company’s marketing

department.

List of contentsMission statement 6

Values 7

Introduction 8

Goals & Objectives 9

SWOT Analysis 10

Segmentation 12

Targeting 12

Marketing Environment 13

Micro Environment 14

Company 15

Suppliers 15

Marketing Intermediaries 16

Competitors 16

Customers 17

Macro Trend Analysis 18

Demographic 18

Economic 19

Natural 19

Technological 20

Political 20

Characteristics of Target Market 20

Target Market of Jeans 21

Demographic Description 21

Geographic Description 22

Behavioral Description 22

Product Description 22

Product Usage 22

Purchase Influence 23

Life-Style of Users 23

Market Attractiveness Factors 24

Competitive Position Factors 25

Opportunities for Competitive Advantage 25

Firm and Competitors Capabilities and Resources 26

Impact 27

Conclusion 31

6

MISSION STATEMENT

"To provide a unique, innovative and desirable fashion

environment to the society, to provide comfort with no

compromise on quality and to stay in step with fashion trends for

customers"

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VALUES

Our values are fundamental to our success. They are the

foundation of our company, define who we are and set us apart

from the competition. They underlie our vision of the future, our

business strategies and our decisions, actions and behaviors. We

live by them. They endure.

Four core values are at the heart of STEPH G Jeans.:

Affordability, Originality, Excellence and Courage. These four

values are linked as we see a story of how our core values work

together and are the source of our success.

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Introduction:

STEPH G Jeans was established in September 2009. It was

founded by 3 partners Rizwan, Mohsin and Umer in Lahore,

Pakistan. The Head office of STEPH G Jeans is located in Liberty.

The manufacturing units are located at Raiwind Road Lhr. There is

an intense competition of sellers of jeans in market. STEPH G

Jeans has to compete with brands such as Diesel, Lee Jeans, Calvin

Klein and more popular and leading brands in Clothing industry.

The main idea of introducing STEPH G G Jeans is to change the

strong perception of customers that the Pakistani Brands are low

quality and obsolete fashioned. The company manufactures Jeans,

Jackets and sportswear for men, women and children. The

company’s outlets are located in Y Block (Defense Housing

Authority), Siddique Trade Centre (Main Boulevard), Panorama

Shopping Mall (Mall Road Lhr.) and in Pace (Gulberg II near

Hafiz Centre). The company is seeking to open more outlets in the

areas Fortress Stadium Lhr. and Moon Market (Iqbal Town Lhr.).

The main target customers of company are teens and youngsters.

The company is using differentiated (segmented) marketing-

strategy.

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Goals & Objectives:

Following are the objectives of company;

1) products should be unique in style and fashion

2) to provide customers with latest fashion

3) products should be innovative to attract customers

4) the products should be good enough quality wise

5) the firm’s technology should match with international

standards

6) customer satisfaction and loyalty is our focus point

7) to change the false perception of customers of Pakistani

products

8) to capture 7% of market share till the end of year 2010

9) to promote its sales to 60% at the end of year 2010

10

SWOT analysis

SWOT analysis means Strengths, Weaknesses, Opportunities, and

Threats to a company.

Strengths:

Innovative fashion that fulfills the needs of customers

STEPH G employees are fully corporative and friendly with

customers

STEPH G provide all types of men Jeans

Up-to-date technology

No compromise on Quality

Weaknesses:

Competition available in their price range

Strong brand image of international jeans brands

Electricity and gas shortage

Increased taxes and interest rates

More opportunities are provided to international companies

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Opportunities:

They could expand more into Women's jeans (right now they

mostly do men’s)

Threats:

The transportation costs will be higher with the increase in

oil costs. If they are unable to pass on the increased costs in

the form of higher prices they will have decreased margins.

Terrorism is a major threat to the company in Pakistan

Due to international pressures local companies are not

growing

Political instability

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Segmentation:

The Clothing industry is segmented into following four

segments;

Customers that lie in age group of

1) 11 to 14 years

2) 15 to 25 years

3) 26 to 40 years

4) 40 to 45 years

STEPH G is segmenting the market based on age factor because

clothing specially Jeans are depends upon the likes and dislikes

according to age.

Targeting:

From above mentioned 4 segments, STEPH G has targeted

only two segments;

1) 15 to 25 years (students)

2) 26 to 40 (professionals)

As these segments are the basic and true customers of Jeans wear,

which include both males and female sexes.

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Marketing Environment:

The environment of a company includes the actors and forces that

affect its performance. The marketing environment is divided in

two parts;

1) Micro environment:

These are the actors which are close to the company that affect the

company’s ability to serve its customers. It includes company,

suppliers, market intermediaries, customers, competitors and

publics.

2) Macro environment:

Larger societal forces that affect microenvironment. These forces

are demographical, economical, natural, political, technological

and cultural environment.

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Micro environment:

The micro environment of the company consists of following

actors;

1) The company

2) Suppliers

3) Marketing intermediaries

4) Competitors

5) Publics

6) Customers

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Company:

The company is divided into following departments shown

by fig;

There is a proper coordination and communication system

among all the departments so that employees are working as a

team and they are satisfied and contributing their best efforts to

raise the standards of the company.

Suppliers:

The production of jeans includes the ingredients like fabrics,

buttons, zips and machines for the production of jeans. Machines

we import from Germany and Japan. Our main fabric suppliers are

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Nergis Textile Mills and some of the material like zips and buttons

are also supplied by Lisa Manufacturers.

Marketing Intermediaries:

Our main market intermediaries are our distributors,

wholesalers and retailers. Our financial intermediaries include

RMU Bros. and Askari Bank.

Competitors:

Being an introducing brand in Clothing industry STEPH G

Jeans has to compete with pre-established brands. It has to make its

impression in the minds of customers and get advantage on its

competitors.

The main competitors for STEPH G are Diesel, Lee Jeans

and Calvin Klein. As these brands have a good perception and a

good position in customers’ minds that’s why the company’s

competition is very strong.

All these brands are providing great varieties in Jeans

clothing like there are several types of Jeans pants i.e. Blue Jeans,

Straight Cut Jeans, Bell Bottom and their price ranges has also a

good impact on competition.

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There products are in many categories of price and quality

combination that provides a thrust to the competition.

STEPH G Jeans is also launching the most demanded and

upcoming fashioned products like Flare Cut, Boot Cut, Casual

Jeans and many more products are there to compete with so

established brands.

Customers:

Customers are the largest asset of a company so they should

be chosen very carefully and decisions relating to them must be

backed by a good decision maker.

STEPH G Jeans is actually using the Segmented Marketing

Strategy that is there are some portions of market that are mainly

targeted.

The segment of age differences 15 to 25 years is the most

effective and valuable for the company as because they wear jeans

wears for their casual use, going to college, for fashion and what

they desire.

26 to 40 years age ranging customers are those that are

professionals and wear jeans for only for the sake of rest because

always in a formal dress, they become tire and bore so they come

to Jeans clothing.

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MACRO TREND ANALYSIS:

DEMOGRAPHIC ENVIRONMENT

The study of human populations in terms of size, density,

location, age, gender, race, occupation, and other statistics is

know as demography.

Demographics of our company are as follows:

Different price ranges and offers for various income groups

Teens and youngsters age bracket: 15-25 & 26-40 years

We develop products for both Male and Female

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ECONOMIC ENVIRONMENT

The economic environment consists of patterns that affect

buying power and patterns. The economic environment is

characterized by more consumer concern for value and shifting

consumer spending patterns. Today’s Squeezed consumers are

seeking greater value, which is the right combination of good

quality and service at a reasonable price. The distribution of

income is also shifting. So our company has tailored our market

offers to two different markets which are: “the affluent” and the

“less affluent”

NATURAL ENVIRONMENT

Natural environment for jeans market is favorable because

the customers are responding to it positively. Jeans is liked heavily

among the children, students, sportsmen, youngsters and the

models in fashion industry.

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TECHNOLOGICAL ENVIRONMENT

STEPH G jeans are creating new technologies, new products

and market opportunities in order to attract customers and defeat

its competitors.

POLITICAL ENVIRONMENT

There is political instability and terrorism in Pakistan. When

the reign of one government is finished the new government

changes all the plans and actions of the previous government. Due

to these factors interest and tax rates changes and the rate of

development decreases. Secondly the government of Pakistan is

not encouraging and promoting the Pakistani companies to

compete with global companies. International pressure is also a

hurdle in this regard. All these factors are hurdles in the promotion

of Pakistani products.

Characteristics of Target Market:

Internationally defined target market for jeans is 12-30 years

age group, but due to high percentage of teenagers and youngsters

present in Pakistan’s population, we have revised our target market

as follows,

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Students with age group 15 to 25

Youngsters lying between 26 to 40

Those who are seeking their education and those who

are at the end of their education and beginning their careers.

Quality conscious

Fashion conscious.

Parties and fun loving people

No specific income group

People wear jeans for these main reasons:

Fashion

Durability

Quality

Image

TARGET MARKET OF JEANS

Demographic description:

15 to 25 years old & 26 to 40

Both male and female

Majority constitutes of school, college and university

students.

Fresh employees and married people are also a small

part of the target market.

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Taste of fashion plays an important role for buying

jeans.

Geographic description:

We are initially targeting Lahore in our first stage but our

final target is to go all along the country and all around the Asia.

Behavioral description:

We want to fulfill our customer’s preferences for:

Quality

Fashion

Handsome look

Problem avoidance

Reliability

Product descriptions

Product Usage:

Very frequent use of the jeans on almost all of the

major occasions including Eid, Parties, and other important

Festivals and Events.

Heavily used by the school and college students.

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Purchase Influence:

Purchasing decision making is based on individual

preferences which can lead to the same product among other

individuals as well. For instance if a youngster purchase a

particular brand of jeans he/she can influence his or her friends or

relatives to purchase the same product.

Word of mouth is also an effective means of promoting sales of

any product.

Life Style of the Users:

Life style does matter a lot on the purchase of a product. For

example if a student prefers jeans in his life style then his

obviously his consumption for jeans is certainly more than a

person who wears jeans occasionally. Similarly the social class

level also matters in the purchases.

The upper class usually go for the quality, fashion and status while

the lowers are more conscious to price.

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Market Attractiveness Factors:

Differentiated cuts and styles of STEPH G jeans allow us to

provide a handsome look to our customers.

The company can make exclusive designs of STEPH G jeans

for showbiz and fashion industry and by doing advertising of

STEPH G jeans through actors, singers, sportsmen and other

stars; they can heavily attract public to buy STEPH G jeans

and ultimately the company will going to be one of the most

populous company of the country.

Current sales of STEPH G jeans are very low. The price

ranges are actually targeting the upper class of the target

market while the majority class of the target market lies in

the lower and lower-middle class. So there is a golden

opportunity of capturing the rest of target market. At the

present, only 10% of the potential target market is being

attracted. So we can also attract rest of the market through

advertising and other effective marketing tools.

Growth rate is only 8% per year which can increase if

effective marketing tools are used and implied in an efficient

and effective manner.

Expansion into related products such as: Kurta Shalwar,

Shalwar Kameez, Sherwani, Wedding dresses, Pant Coats,

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Ties etc can give us strong market share and growth

opportunities and make our image and brand stronger and

popular.

COMPETITIVE-POSITION FACTORS:

Opportunities for competitive advantage:

Differentiation based on quality, style and fashion make

advertising highly efficient in order to create a unique brand

in the perception of customers.

Pakistani products do not meet quality and durability, so

customer’s loyalty is not guaranteed. As we are offering

quality products so our customers will remain satisfied and

loyal to us. This factor will increase the sales and share of our

company and make us able to compete with others.

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Firm and Competitors capabilities and resources:

Local companies are making minimal use of advertising and

other effective marketing strategies to promote their

products. We can make better use of advertisements and

other marketing strategies to promote our brand in the

country.

Imported jeans are based on few distributors importing them.

So by strong distribution we can prevail over the imported

garments purchased in our country.

Reliability on imported products is very high and the local

brands are very weak. By creating awareness of our brand

through efficient and effective management of 4 Ps the

targeted market share can be achieved.

Imported jeans such as “levis”, “Gucci Armani” and others

are only targeting status conscious class, while we are

focusing on both upper and middle classes so we can win the

hearts of the majority by using effective marketing tools.

Our company is technologically advanced so our production

capacity is up to the mark.

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IMPACT

From the above explanation we come to know that all the

factors plays equal role in the development and growth of the

company. We cannot neglect the importance of any single factor.

All the groups of the company that is top management, finance,

research and development (R&D), purchasing, operations, and

accounting work together with diligence, hard work and as a team

only then the company is able to progress and go around the globe

successfully.

Suppliers form a very important link in the company’s overall

customer value delivery system. They provide the resources

needed by the company to provide its goods and services. If the

suppliers of the company are not loyal to the company then they

can seriously affect the market. It is necessary that the company

should establish healthy and good long lasting relationships with

the suppliers so that the suppliers provide the needed resources in

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time, sufficient in quantity and of the good quality and they shall

remain faithful to your company in delivering supplies.

Most marketers today treat their suppliers as their partners in

creating and delivering customer value. Their must be a good

communication channel between the suppliers and the company.

STEPH G jeans have a separate department for that named as:

“supplier development department” which helps to make good

relations between the suppliers and the company. It has also

created a website to navigate the complex buying process.

Secondly your “competitors” both direct and indirect heavily

have an impact on your overall activities. You have to see and

watch all the activities and strategies of you competitors, what new

strategies they are developing, their products, their plans, their

prices, their services, their new ideas, their competitive advantages

over your products, their advertisement and marketing mix tools

and tactics. You have to carefully analyze and observe all these

measures in order to compete, survive and defeat others. You have

to deliver better products and services than your competitors with

greater customer value and satisfaction. Direct competitors have a

direct impact on your progress in the sense that they want to

compete your company by raising quality, delivering greater

customer value and by effective marketing strategy than yours.

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Indirect competitors can attract more customers than yours by

keeping low price strategy and can made cheaper products to

attract all the lower and middle class community. They can make

your share and growth down in the market if you do not keep in

touch with their plans and strategies.

“Customers” are the key to success. The company must have to

identify its target market. What are their customers, what are their

needs, wants and demands? What is the focus of the customers?

Either they are price, brand or quality conscious? Or either they

want all these items means that they want good brand and quality

at a reasonable price.

Secondly the company must have to segment its market

according to segment variables for consumer markets which

include: geographic, demographic, psychographic and behavioral

segmentation.

Demographic segmentation is more important factor and can

easily be calculated and observed.

Segmentation based on age, gender, family size, life cycle etc

are effective measures to segment the market. For example if we

want to introduce a new brand of jeans we have to analyze the age

group of the people who like and wear jeans, their gender and the

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life style of the people etc. how often do they wear jeans and what

characteristics in the jeans do they want.

Income must be carefully analyzed because purchasing power is

heavily dependent on that. You cannot introduce a status oriented

product to the people belonging to a lower class which are not able

to purchase these products.

Gender and brand image also matters a lot because if you

introduce a Gillette product which is typically a men shaving items

manufacturing company. If we introduce Gillette beauty cream for

women then certainly it do not work and your product will going

no more to be popular.

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Conclusion

So from all of our above discussion and explanation, we

conclude that:

If a company wants to reach the heights of glory, it must have to

focus strongly and efficiently on its customers needs to create

greater customer value, loyalty and satisfaction

&

Carefully analyze the strategies of its competitors in order to

develop and use more efficient marketing strategies than its

competitors for greater growth and market share and to keep pace

with the modern trends.