gnirejrPt leajtajtaPralFnejorP laniF

Table of Contents
2.Proposed Questions for Qualitative Research 11....Jeans Industry 12Level of Market Segmentation 17.Brand Awareness 18..Business Plan22Pest Analysis j 30..Strenghts-Swot Analysis j 33...Weakness-Swot Analysis Maybe, we only sell a few of brands of men clothing, we could stock more accessories, but we j 34j.................................jdont want to confuse the customer about what line of business we are in. j 34........................................................................................Opportunities - SWOT analysis sample j 35j..........................................................................................................................................jThreats

Page 1

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

Proposed Questions for Qualitative Research

1. Which Pakistani cultural dress you like most or influence you? Punjabi Sindhi Balochi Pathani Kashimiri

Which Pakistani cultural dress you like most or influence you?

4% 0% 7% 7% Punjabi Sindhi Balochi 59% 23% Pathani Kashimiri

Page 2

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

2. Do you prefer purchasing jeans? Online Traditional brick Mortar locations

Do you prefer purchasing?

11%

25% Online 64% Traditional brick Mortar locations

Page 3

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

3. How would you define premium jeans? Comfort, Quality Stitching, Style Fashion, Style symbols Price, Quality

How would you define premium jeans?

Comfort, Quality Stitching, Style Fashion, Style symbols Price, Quality

30% 50% 10% 10%

Page 4

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

4. Which kind of dresses you like most? Formal Casual Both Don't bother

Which kind of dresses you like most?

Formal Casual Both Don't bother

15%

15%

15%

55%

Page 5

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

5. What factors determines how much you pay for jeans? Quality Price Variety All of them

What factors determines how much you pay for jeans?

14% 13% Quality 4% 69% Price Variety All of them

Page 6

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

6. What type of person would most influence you most to buy jeans? Peers Celebrities Models Sports celebrity

What type of person would most influence you most to buy jeans?
Peers Celebrities Models Sports celebrity

20%

10%

40% 30%

Page 7

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

7. What are your perceptions of current clothing advertisements are? Very Good Good Neutral Disagree

What are your perceptions of current clothing advertisements are?

Very Good Good Neutral Disagree

10% 35% 30%

25%

Page 8

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

8. Name a jeans advertisement that is memorable to you? Levi's Stoneage Denim Outfitters Calvin Klein

Name a jeans advertisement that is memorable to you?

Levi's Stoneage Denim Outfitters Calvin Klein

3% 5%

10%

5%

77%

Page 9

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

9. Current trend? Need to be change Not to be change

Current trend?

Need to be change 40% Not to be change 60%

Page 10

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

JEANS INDUSTRY
In order for a new brand to establish itself in its market and for its products to sell successfully, thus achieving company goals and shareholder profitability, a number of key principles concerning consumer behavior have to be fully grasped and addressed. As well as producing a range of new, exciting and quality garments, the firm will need to ensure that its products are cleverly and thoughtfully marketed to the appropriate consumer groups. The importance of consumer behavior in deriving this strategy. Look at the importance of a clear and up to date comprehension of the factors that affect consumer behavior, paying particular attention to the key role that perception will play in forming consumer's attitudes towards the new range of designer jeans. Continue on to show how favorable perceptions about brands identity will have a positive effect in raising consumer motivation to purchase a product from their range. The fashion industry at this time; a time of increasing disposable incomes and incidence of recreational shopping, is intensely competitive. We can draw on many examples to highlight the point that; companies who have established a strong and clear brand image, have tended to command a larger market share than those companies who's image is either unfavorable, for example old fashioned, or unattached to specific and clear values. Establishing a strong and distinguishable brand image for the 'Anti-Fit' range of jeans is the central idea behind marketing strategy for breaking into the competitive market and ultimately gaining a favorable share of the market for designer jeans. Creating the right brand image is largely dependent upon being in tune with the mindsets, beliefs, values and aspirations of the modern, well-informed consumer. Moreover ensuring that the consumer perceives the firm to be in tune with their way of thinking and holding similar values centrally to the brand identity will be the key to ensuring marketing success.

The purchase of a pair of designer jeans may be considered neither a high involvement nor low involvement purchase, where involvement may be thought of as the degree of perceived relevance and personal importance accompanying brand choice. Potential customers within such a competitive market have a number of factors influencing their purchasing behavior. Consumer buying is motivated by something more than awareness; it depends on the consumer's needs and drives, tastes and aspirations, attitudes, personality and social environment. Products are not only purchased for their functional values but also, for the social and psychological meanings they convey. The purchase of a pair of jeans is linked, to what extent is dependent on the individual, to the formulation and shaping of a consumers self-image. Purchasing a pair of jeans will to some degree shape a person's self-image and the way others may perceive them. As marketers, a company must align the consumer's self-perception and the image they intend to project to others, with the attributes and values they perceive to be attached to the company and its associated products.

Page 11

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 marketingmass producing, mass distributing, and mass promoting about the same product in about the same way to all consumers. The traditional argument for mass marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can translate into either lower prices or higher margins. So thats why there is lot of potential in jeans industry to grow till maturity. Now there is a trend which showing that the market will split more till maturity and many other competitors will come in this industry with a new style and can earn. The jeans industry has to serve here for working women, students, and having a important role in todays modeling. Today, marketers find it very hard to create a single product or program that appeals to all of these diverse groups. The proliferation of distribution channels and advertising media has also made it difficult to practice "one-size-fits-all" marketing. Today's consumers can shop at megamalls, superstores, or specialty shops; through mail catalogs or virtual stores on the Internet. They are bombarded with messages delivered via media ranging from old standards such as television, radio, magazines, newspapers, and telephone to newcomers like the Internet, social networking and e-mail.

Segment Marketing
A company that practices segment marketing isolates broad segments that make up a market and adapts its offers to more closely match the needs of one or more segments. Thus, Jeans making companies or you may say industry markets to a variety of
segments which they are servingStudents, Youth, Casual dressers lovers, Business travelers, Working females and otherswith packages adapted to their varying needs. Jeans has designed specific stuff and style for different income and age groups. In fact, it sells models for segments with varied combinations of age and income. For instance, Jeans designed straight, simple and loose fit for older, higher-income consumers. Segment marketing offers several benefits over mass marketing. The company can market more efficiently, targeting its products or services, channels, and communications programs toward only consumers that it can serve best and most profitably. The company can also
Page 12 olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 marketfor example, luxury jeans buyers, casual jeans buyers, quality jeans buyers, and economy jeans buyers. Niche marketing focuses on subgroups within these segments. A niche is a more narrowly defined group, usually identified by dividing a segment into sub segments or by defining a group with a distinctive set of traits who may seek a special combination of benefits. For example, the quality jeans segment might include light-weight, nice stuff and support their personality what they want to be look. The casual jeans subsegment might be further divided into standard (as served by Outfitters and Stoneage) and luxury jeans (as served by Levis and Wrangler) niches. Whereas segments are fairly large and normally attract several competitors, niches are smaller and normally attract only one or a few competitors. Niche marketers presumably understand their niches' needs so well that their customers willingly pay a price premium.Niching offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger competitors. However, large companies also serve niche markets. In many markets today, niches are the norm. As an advertising agency executive observed, "There will be no market for products that everybody likes a little, only for products that somebody likes a lot." Other experts assert that companies will have to "niche or be niched."

Micromarketing
Segment and niche marketers tailor their offers and marketing programs to meet the needs of various market segments. At the same time, however, they do not customize their offers to each individual customer. Thus, segment marketing and niche marketing fall between the extremes of mass marketing and micromarketing. Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. Micromarketing includes local marketing and individual marketing.

Segmenting Consumer Markets

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.

Page 13

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

Geographic Density Demographic Age Gender Family life cycle Income Occupation Male, female Young, single; young, married, no children; young, married with children; older, married with children; older, married, no children under 18; older, single; other Under 10,000; 10,00020,000; 20,00030,000; 30,00050,000; 50,000100,000; 100,000 and over Professional and technical; managers, officials, and proprietors; clerical, sales; craftspeople; supervisors; operatives; farmers; retired; students; homemakers; unemployed Grade school or less; some high school; high school graduate; some college; college graduate Urban, suburban, rural

1219

Education Psychographic Social class

Lower middle upper Achievers, strivers, strugglers Compulsive, gregarious, authoritarian, ambitious

Lifestyle Personality Behavioral Occasions Benefits

Regula Quality, Comfort, Economy

Page 14

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 anotherall 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 attractive segments could be dismissed quickly because they do not mesh with the company's longrun 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.

Page 15

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 consumerscompanies 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 segmentswhen 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 attributesthe 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 overloaded with 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 categoriesthey "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
LEVIS LEVIS for women Stone age

Positioning
Embrace your shape Lighten up

All your fashion needs sorted. Passion

Outfitters

Page 16

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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

Page 17

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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.

Page 18

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 and more 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 your business 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.

Page 19

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

The Marketing Environment
Todays market is characterized by highly competitive organizations which are all vying for consumers 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 companys marketing environment influences the business organization directly. This includes the suppliers that deal directly or indirectly to the people within the business organization, the consumers and customers who demand for the products or services offered by the company, and other local stakeholders who influence the decision-making process or affected by the business decisions made by the business firm. As such, the marketing environment of a particular company describes the relationship between firms and the driving forces that control this relationship who are members of a specific industry wherein the relationship is local and the firm may exercise a degree of influence.

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.

Page 20

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 companys performance. Again, the role of marketing research in the decision making process of the company is to provide imperative information that is very vital in the growth, success and survival of the marketing course of the product in relation to the business as a whole.

Page 21

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

PEST Analysis Overview

The environment we live in can be very volatile. All organization has its considered internal weaknesses and strengths, but the outside world will also have a major impact on the organizations future. PEST Analysis is a popular marketing management tool and method of examining the many different external factors affecting an organization. The acronym PEST stands for the following: Political, this is the current and potential influences from political pressures; Economic, the local, national and world economy impact; Sociological, the ways in which changes in society affect the organization; and Technological, the effect of new and emerging technology.

Since the company is offering clothing designs for all ages which depend on the needs and demands of their customers, there are some external factors that the company must consider in order to stay in the competitive world of business. The following are some of the factors within the external environment that the management of the company must consider.

Political (Legal) Aspects

A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. Political and legal sectors include the needs of the company to follow the given policies and regulations of the government in order to be considered as legal and authorized business company. In this manner, ABC Clothing Company should be able to consider political and legal aspects so as to show that they value the policies and regulations of the government in any of the business operations .

Page 22

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

- 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.

Page 23

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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

Page 24

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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
Page 25 olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 buyers and customers total cost. Nonetheless, the customers could if desired backward-integrate specifically by acquiring a company in the industry to which is included. The following are micro-environmental aspects that are necessary to consider.

Suppliers Power
Many suppliers provide raw materials to the industry. Moreover, companies in the industry are not likely to backward-integrate. On the other hand, it could also be posited that the companies in the industry are the primary source of revenues for the suppliers. This makes the competition among suppliers more rigid. Likewise, if raw -material costs get out of line, companies in the industry would be able to have a hard time using a different type
Page 26 olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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

Page 27

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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 the oxygen level and pH of streams and waterways
Page 28 olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

In the process of distressing, jeans are sandpapered, marked with mechanical tools and faded with large quantities of potassium permanganate - a bleaching agent once commonly used to trigger illegal abortions. The jeans are then stonewashed, doused with fabric softener, washed and rewashed. In many factories, the chemicals are left to wash down the natural water ways in bright indigo patches. The indigo waste and chemicals that are left to float down the canals, which are also used by farmers to irrigate their land, sterilizes the soil it comes into contact with and kills seedlings All of the processes needed to make the jeans, takes energy. 70% of the energy expended from processes associated with jeans occurs from washing, drying and ironing at home. According to a study conducted by Levi Strauss & Co, one pair of jeans emits 32.3 kilograms of CO 2; equating to approximately 71 lbs of CO2 emissions. This may not seem like a very large amount of emissions, but taking into account that over one billion pairs of jeans are produced each year; an approximate amount of 71 billion pounds of CO 2 produced each year from jeans alone will put the shakiest skeptic in his place.

Social Impact of Jeans

Jeans impact our social life almost as much as Facebook does. The type of jeans we wear classifies us into our clicks or groups. Skinny jeans, on guys, can mean Goth, emo or punk. Un-faded blue jeans can mean worker, hick or nerd. Jeans with positioned fading, bolded stitches and purpose wrinkles can mean preppy. All apparel we have and wear classifies us as a type of person, and that can either increase or decrease the amount of friends you might have depending on the chosen style.

Page 29

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

Swot Analysis
SWOT Analysis Examples: Strengths Possible Strengths Tangible Strengths Large outlets of all brands. Response Is it a strength? Yes

Shop fittings and stock with computer and software. Levi's is market leader and trend setter. Can pick and choose what styles to stock. All brand sin jeans industry which are multinational Having fund brands they have sufficient financials in their assets to an expansion increase. to a larger footprint store. Due to having a local manufacturer in market so it's a No, rents are advantage for jeans industry. all pretty standard, you can save on rent but loose the foot traffic, so it is all relative. Using superior technology in business from software to stitching. High volume business. We do sell a lot, Our product is high quality, high margin and low volume in comparison Can scale up your volume Orders are placed in advance, shop size having a limit to fulfill these orders. Intangible Strengths Strong recognizable brands like Levi's, Outfitters, The brand Denim, Stoneage , Calvin klein. space is
Page 30

Yes

Yes

No

Yes Yes

Yes

Yes
olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

becoming cluttered with more and more recognizable brands. 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. Though they have just another supplier to them. They are able to differentiate from our competitors. They have long term agreements in place with some suppliers to be their sole representative in this region. Yes

Have good relationship with customers. (Goodwill)

Yes

Have strong relationships with suppliers

Yes

Positive relationship with employees

No, our competitors also have good employee relations

olijmrPGliaM

Page 31

gnirejrPt leajtajtaPralFnejorP laniF

Brand names are patents and copyright in that industry. Yes Yes

Have a proven advertising process that works well.

Innovative business

Email news letter with specials and new stock, seems to work for retaining customers. Most new customers were attracted to the shopping complex. In sales and relationship building. Current location in the center has high traffic, in an area with several other shops targeting the same market which draws people to the area

Yes

Yes

Other Strengths All big markets in Pakistan outlets are there

No

Summary The key strengths 1. Unique brands protected by sole supply agreements 2. Successful relationship marketing, and 3. Innovative sales techniques

Page 32

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

SWOT Analysis Examples: Weaknesses Possible Weaknesses Response Is it a Weakness? Tangible Weaknesses Product line too narrow Maybe, we only sell a few Maybe of brands of men clothing, we could stock more accessories, but we dont want to confuse the customer about what line of business we are in. High overall unit cost relative Local brands Maybe to your competitors. Intangible Weaknesses Marketing plan can fail to meet On some certain issues. Yes objectives 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? Yes

Industry Opportunities Can expand product range. Yes, there are no contractual restrictions to adding products to the store. Can expand into supplier's Yes, the skills to establish an import field. business Can expand customer Maybe, through internet sales and mail base(Geographically or order, maybe open another location through new products) Have placid competitors. Yes, there is not a lot of competitive advertising in our niche, and price is not so much of an issue to our customers
Page 33

Yes Yes

Yes

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

Export opportunities. Total market products grow. Macro Opportunities Economic outlook favorable Jeans are import Yes, but not significantly Yes Yes

Favorable cultural shifts that will benefit.

Any changes in the use of technology that business can utilize such as Ecommerce or Internet sales?

No, however this may play favorably to business as our target market might postpone larger expenses as a result a greater share of purse may be allocated to clothing this is yet to be proven. Due to increases in housing prices our target customer has opted to postpone taking on longer term debit. Instead to remain in the nest for longer. This trend increases their customer life for our products. Use of internet to increase marketing and online sales.

No

Yes

Yes

Strengths - SWOT analysis

First, focus on Strengths. What within your marketing strategy is an advantage for you? Let's say, 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 dont 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.

Page 34

olijmrPGliaM

gnirejrPt leajtajtaPralFnejorP laniF

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.

Page 35

olijmrPGliaM