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peter england project file on branding
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MARKETING MANAGEMENTBRAND OBSERVATION PORTFOLIO PORTFOLIO PETER ENGLAND
Introduction
� Peter England, the hallmark of honesty, started off with shirts and now comprises of the entire men's wardrobe containing the full range of garments.
� Popular for lifestyle brands.
� The largest selling shirt brand in the country.
� Owned by Madura Garments in India with a retail value of 130 crores.
Background
� Launched in March-April 1997 in India.
� Became a 1 million brand in 2 years.
Market Segment when launched :-� Market Segment when launched :-
Segment Price range Share
Premium Rs 500+ 15%
Mid-Price Rs 250-500 35%
Economy Below Rs 250 50%
Marketing Concepts
Marketing objective� To build Peter England into the largest selling
brand in India.
� To establish Peter England as an international
quality brand at an affordable price.quality brand at an affordable price.
� To create a quick and universal awareness of the brand’s
USP of quality and price.
� To build strong brand preference and sustain brand loyalty through
attractive imagery and constantly reiterate the product’s pluses.
Marketing Mix
Peter England follows the four Ps of the marketing mix:
� Product architecture – The range comprises regular office wear, special occasion wear and casual wear.
� Pricing – Price grid integrity is maintained by ensuring that 65 per cent of the brand offering is below MRP 500 through 'Core' range.
� Promotion – Bold usage of vernacular media, Press and TV media , Print media, right brand associations through sponsorships.
� Place/Distribution – 162 exclusive outlets across 69 towns, distribution through monthly advance ordering to customizing to the retailer needs in terms of the design-size-style preference.
CONSUMER BEHAVIOUR
Customer Value And Satisfaction
� Ensured the consumer's need for 'product plus brand imagery'.
� Delivery of consistent good quality was ensured.
� Contemporary designs, colours and fabrics were used. used.
� Wide distribution ensured easily availability
� Well-orchestrated merchandising drove guaranteed market visibility.
Contd…
� Tied up as 'Just honest-to-goodness quality. Available at an honest-to-goodness price'.
� Thus emerged the brand line: “Peter England - The honest shirt”.
The brand’s communication has moved from telling � The brand’s communication has moved from telling the consumer to “what the brand is” to “what the brand does”.
� The launch of suits has re-energized it and now it is “Peter England- Honestly Impressive”.
Market Evolution
� Tied up as 'Just honest-to-goodness quality. Available at an honest-to-goodness price'.
� Thus emerged the brand line: “Peter England - The honest shirt”.
The brand’s communication has moved from telling � The brand’s communication has moved from telling the consumer to “what the brand is” to “what the brand does”.
� The launch of suits has re-energized it and now it is “Peter England- Honestly Impressive”.
The Honest Shirt Honestly Impressive
SEGMENTATION, TARGETING AND POSITIONING
Segmentation,Targeting And Positioning
5. Positioning for Medium priced and Economy Segment
6. Develop MarketingMix for Each Target Segment Market
Positioning
2. Develop Profilesof Resulting Segments
3. Measures of Segment Attractiveness
4. The Middle income segment was the target.
and Economy Segment
MarketTargeting
Market Segmentation1. Identified the income Segment
of the Market
Market Segmentation
� While venturing into “The Ready to wear garment” sector, it identified the shirt segment as its focal entry point.
� Since then it has identified further segments namely Since then it has identified further segments namely trousers and suits with further sub-segmentation in each segment.
Niche Marketing
� Catering to Executives through Formals
� Casual Wear through Elements Via
� The Anti Wrinkle Collection
� The Solids Collection
� The Festival Collection
� The English Cottons Collections� The English Cottons Collections
� The Summer Mints Collection
Segmentation Procedure
INITIALLY� It identified Customer’s need for Brand + Product Imagery.� Used the Demographics and lifestyles to enter the mid price segment.(Rs 250-
500) in both Formal and Casual( Elements)
� Test launch in diverse Geographies.(Like Suits & Blazers)� Huge Potential and Good Growth rates in the mid price segment.� Value proposition of Quality Via the imported fabric + Affordable Price� Value proposition of Quality Via the imported fabric + Affordable Price
EVENTUALLY� Targeted Multiple Markets
� Ventured into:� Trousers in 2000.
� Suits in November 2004.
� Innerwear in April 2005.
� Lifestyles
Basis For Segmentation
Income,occupation,Age(25-28),gender(men)
Formal,Casual,style Statement,ambitious
Bases
for Segmenting
Business
MarketsSituationalFactors
Income,PriceRange
Value for price,Quality,durability
Criteria For Segmentation
SubstantialitySubstantiality
IdentifiabilityIdentifiability
The middle income segment is large.Peter England now considers high income
Level segments.
The segment is identifiable .IdentifiabilityIdentifiabilityMeasurabilityMeasurability
AccessibilityAccessibility
ResponsivenessResponsiveness
The segment is identifiable .
The middle and high income groups have access to marketing mix(Televisions,
Newspapers,hoardings etc).
The price ranges available are economic, mid – price and premium.
Targeting
� Mid Price segment concentration.
� Entry into Premium segment.
� Followed the Selective Specialization Strategy through Shirts� Followed the Selective Specialization Strategy through Shirts
� Trousers
� Suits
� Inner wares
� Accessories
Positioning
� Peter England brand has been positioned for the masses and is in the mid-price category. It offers value for consumers at affordable price.
� It is distinctly positioned for different categories as that it is ensured that Madura Garments brands grow through different target customers rather than cannibalizing on each other’s target segment.than cannibalizing on each other’s target segment.
� Peter England is a shirt brand. Once launched, it got into the consumer’s mind under the honesty platform and the logical extension that should happen in the marketplace is this evolving into an honest wardrobe. So, allied products are offered that are appropriate to the brand and ensure the same benefits, it is a proper extension.
Positioning For Competitive Edge
Product Position
� Peter England shirt was projected as an ‘Honest Shirt
� The image was reinforced by ‘Honestly Impressive’
Shirts,Trousers, Suits,
Accessories ,inner wares
Design,quality,value
for money
Positioning For Competitive Strategies
Casuals ,Formals
Quality ,Durability,
Honesty/ trustworthiness
Middle and High
Income group
B
A
EEDD
CCHH
GG
FFMid-price against
Unorganized market
Quality and style Away
from organized market
Developing Competitive Differentiation
Shirts ,Trouser,Accessories Quality,Durability
Honest Shirt
Areas for CompetitiveAreas for Competitive
Differentiation
Robust Distribution chains,
Shops,exclusive showrooms
Middle Income,High Income,Middle Income,High Income,
Men
PRODUCT
Product
� Range realigned into regular office wear, special occasion wear and casual wear.
� A string of innovations delivering value introduced across all above categories
Shirts,Trousers,Accessories
� Quality and Price:Mid priced
to Premium range.Quality across all above categories starting from English cotton shirts at Rs 375 right up to British micros at Rs 595.
� Trousers range from Rs 545 classic formals to wrinkle-free cotton chinos at Rs 895.
� Elements polo tees at Rs 299 an instant hit in casuals.
to Premium range.Quality
increases with Price
� Range:Wide range in all
collections.
� Material and Style :
Trendy,formals,business
casuals.Guarantee against
material ,stitching and
colour.
Product Mix
� Width:
Madura Garments have two categories of brands –
� premium section, which includes Louis Philippe, Van Heusen,Allen Solly
� popular brands like Peter England, Elements and San Frisco jeans wear.
� Length:Length:
Peter England is into :
� shirts, trousers, and accessories like ties, belts and socks.
� Depth:Peter England shirts available in:
� Price range varied
� Different colors
� Different designs
Product Levels
Peter
England
Packaging
Style
Durability
AugmentedAugmented
ProductPotential
Product
QualityDesign
Warranty
Clothing
Actual(Basic+Expected)
ProductCoreCore
Product
Major Branding Decisions
Brand SponsorBrand Sponsor
Brand Name Selection
Peter England
Brand Strategy
Brand Extension
(Trousers,Accessories,Suits,etc)
Brand Sponsor
Manufacturer
Madura Garments
BRAND DECISIONS
� Attributes: Good Quality
� Benefits :
� Functional : Comfort
� Emotional : Simplicity
� Values : Honesty
� Culture : Fashionable
� Personality : Honest
� User: Young Executives
Contd…
� Word Association : Honesty
� Personifying The Brand : Down to earth
Laddering Up To Find The Brand Essence
� Why Peter England ? � Why Peter England ?
Because it is a good buy.
� Why is it a good buy?
Because it is affordable and good quality
� Why is affordability and good quality important to you ?
Because I want to look good and at the same time not spend too much
BUILDING BRAND IDENTITY
The honest shirt Honestly Impressive
PROMOTION
DECIDING ON THE MARKETING COMMUNICATION MIX
� Promotion – TV and print, the main vehicle for PE
� Local support added through hoarding campaigns � Local support added through hoarding campaigns showcasing product innovations
� Right brand associations built through sponsorships (such as WISDEN Cricketer Awards 2003 co-sponsor) to build consumer connection
Advertising: Media selection
� Peter England has around 160 showrooms, spread across 69 towns. So, optimum to cater to audience through television.
� Also, communicating through print medium, for expanding retail network.Also, communicating through print medium, for expanding retail network.
� To build Peter England’s retail, going for vinyl outdoors –
for announcing the new collection as well as the new locations.
Advertising (9%Sales)
A Difference
�Original concept of Peter England by Madura Garments was exposed in the south through Tamil advertising.south through Tamil advertising.
�Dynamic and adaptable strategy
�Public Presentation
�Pervasiveness
�Amplified Expressiveness
�Impersonality
Direct Marketing
Sales Promotion
� Communication:tv ,
newspapers ,internet ,
hoardings,vernacularhoardings,vernacular
media etc.
� Incentives:discounts ,
sales ,’Buy One Get
One Free Offer’.
� Invitation:
Public Relations and Publicity
� The ‘Honest Shirt Campaign’
create a distinct positioning
for itself.
High Credibility:Six month � High Credibility:Six month
against guaratee against
material,colour, stiching.
� Honest to goodness price
and quality.
� Ability to Catch Buyers off
Guard
� Dramatization
Developing Effective Communication
Middle Income & High Income Group
Making Peter England a global Brand
Establishing Budget
Newspapers,Television,Magazines,Hoardings,
Internet etc
Shirts in yarn,Striped,Plain,Formal Trousers
Knit & Jeans wear,Beach Cargos,Cotton
Capri's …
Multi brand outlets,Departmental stores,Exclusive
Brand Outlets
Managing The Sales Force
Managing sales
force
Recruiting Innovative
Enthusiastic sales
Force
Group Management
training(GMT)
Monitoring target
Levels
Rewards and growth
opportunities
Supervising sales
representatives
PRICING
Pricing Objective
� Peter England aims at maximizing its market share
� Introduces Market Penetration pricing
Peter England in 1997 the journey begins … Peter England in 1997 the journey begins …
� Peter England follows Value Based Pricing
� Goes in for a High Value Strategy
� Offers the consumers premium quality at medium price
Pricing Strategy
� Price grid integrity maintained by ensuring 65 per cent of the brand offering was below MRP 500 through 'Core' range
� At the same time premium products introduced at the top end through collectionslike ‘the solids collection’ and ‘the festival collection’
Factors For Price Setting
Internal FactorsInternal Factors(Cost Of Fabric,Segment Targeted,
raw materials)
Pricing
Decisions
External Factors(Taxes,Import Duties,Govt.Policies)
Contd.
� PE forced to pay excise duty in 2001
� Used higher priced imported fabrics
� Faced stiff competition from regional players� Faced stiff competition from regional players
� Resulted in price increase
� Forced out of the mid price segment
� Decline in sales
Pricing Adjustments
� Sales Promotions- Summer Season offer – buy 2 get 1 free (2005)
� Promotional pricing- cash discounts offered to online shoppers on various online stores such as shoppers on various online stores such as yahooshopping.rediff.com
� Discriminatory pricing- PE shirt in shop priced at Rs. 565; PE shirt online available at Rs. 446
Turnaround In Pricing Strategy
� Made arrangements for low priced quality fibre in India to reduce production costs
� Went back to the below Rs 400 price point with 75 per cent of the merchandise being priced below Rs per cent of the merchandise being priced below Rs 500
� Currently market leader in the mid price segment
� Generated revenues of about Rs 150 crore in the last fiscal and about 30 lakh shirts were sold under this brand name.
The Peter England range available at……
� Shirts priced at below Rs.500
� Trousers priced at below Rs.1200
� Innerwear starting from Rs. 64 to Rs. 499� Innerwear starting from Rs. 64 to Rs. 499
DISTRIBUTION
Place / Distribution
� Place/Distribution – The distribution strategy is adapted to meet newer demands
� Core range was made available “on tap” so that the retailer could increase his stock turns through weekly replenishmentscould increase his stock turns through weekly replenishments
� Collections distributed through monthly advance ordering to customizing to the retailer needs in terms of the design-size-style preference
� Branded shelf route taken in MBOs to showcase the range
� The Peter England exclusive outlet network expanded to 162 across 69 towns
Distribution Channels
� Most efficient and powerful distribution network
� Loyal and dynamic network of agents & distributors
� Strong retail presence with over 250 dedicated retail � Strong retail presence with over 250 dedicated retail outlets(Planet Fashions) and over 1500 multi brand outlets Fashion
Distribution Channels Current Trends
1. Web based ordering for agents (Fashion brands) 2. Automatic replenishment system for distributors
(Distribution brands) 3. Online order processing for factory stores4. Plans to set up showrooms and Mega stores in the
UAE, Sri Lanka and Bangladesh. ‘5. Plans to tie-up with indiatimes.com and sify.com for
online selling.
Channels for Consumer Products
PRODUCER: 8 factories and a warehouse
AGENTS : 15 Agents
WHOLESALERS : 22 IN NUMBER
120 exclusiveRETAILERS : 120 exclusivefranchisee showrooms
3500 retail outlets spread across the country.
Merchandise through 500 Multi Brand Outlets (MBO’s)
Six Peter England mega stores in Kolkata, Bangalore and Pune.
Changing Channel Structure
� All Factories are ISO 9000 Certified by RWTUV of Germany
� Recent initiatives in a SATCO Washing unit and Wrinkle Free unit � State of the art ordering system for agents &
distributors distributors � Automatic replenishment systems for showrooms and
distributors � Sophisticated software systems to collect orders, ensure
superior order fills and customer service � First company in India to implement Enterprise
Resource Planning (ERP) in inventory-specific solution called 'Apparel and Footwear Solution.'
Changing Channel Structure
VMS : Vertical Marketing System
Contractual Marketing System
� Coordinates distribution through formal agreements� Coordinates distribution through formal agreements
� among channel members.
PRODUCT LIFE CYCLE
Introductory Stage
� Introduced for the mid priced sector
� Brand became a rage between 1998 and 2000
� Had competition from players in the unorganized sector
� Factors that hindered its growth(Pushed out of mid price sector)
Rules favoring unorganized sector� Rules favoring unorganized sector
� Taxes and Import Duties
� Import of fabric (40 % from middle East)
� The price of the products increased
� Out priced in comparison with the unorganized players
� Finally pushed out of the mid priced sector in 2002
Summary of Product Performance In Introductory Stage
SalesSales Low sales Low sales
CostsCosts High cost per customerHigh cost per customerCostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
High cost per customerHigh cost per customer
Negative or lowNegative or low
Aimed at capturing the mid priced segmentAimed at capturing the mid priced segment
Peter England ShirtsPeter England Shirts
Medium - pricedMedium - priced
AdvertisingAdvertising ‘Honest Shirt’‘Honest Shirt’
Growth Stage
� New strategy in 2002� The hindering factors got nullified due to
� Change in Rules by Government� Developments in India to match the fabric
Relaxation of duties� Relaxation of duties
� New strategy in 2002� In 2003 offered honest pricing with international
quality� Rs 400 price point with 75 per cent of the
merchandise being priced below Rs 500
Contd.
� Building of the distribution chain
� Focused on Quality Retail
� Opened of shops and showrooms
� Focused on shirt items� Focused on shirt items
� Peter England grew by 20% over the previous year.
Summary of Growth Stage
SalesSales
CostsCosts
ProfitsProfits
Sales increased by 20 percentSales increased by 20 percent
Reduced costs due to fabric and reduced dutiesReduced costs due to fabric and reduced duties
Rising profitsRising profitsProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
Rising profitsRising profits
Maximize market shareMaximize market share
Focus on international quality and non shirt items
Focus on international quality and non shirt items
Medium PricingMedium Pricing
DistributionDistribution Building distribution chains,retail outletsBuilding distribution chains,retail outlets
AdvertisingAdvertising Through Televisions ,newspapers,hoardings etc.
Through Televisions ,newspapers,hoardings etc.
Maturity Stage
� To build Peter England’s retail, vinyl outdoors used –for announcing the new collection as well as the new locations.
� 90 per cent of the sales come from unorganized retail and only the remaining from organized. retail and only the remaining from organized.
� To sustain this growth, the more important part of the agenda is to transform them into lifestyle brands and more and more into organized retail.
� Peter England major event and installation credits include – Site designer, Universal Playground, Adelaide Festival of Arts 2004
Contd.
� Evolved into a complete lifestyle brand which has both formalwear and casual wear
� This brand generated revenues of about Rs 150 crore in the last fiscal and about 30 lakh shirts were sold under the "Honestly impressive" catch line."Honestly impressive" catch line.
� The brand is no more uni-dimensional and known for its value for money benefits(Premium level).
� More number of shops and exclusive showrooms.
� Shirts in the new collection have anti-microbial characteristics.
Maturity Stage
SalesSales
CostsCosts
ProfitsProfits
Peak SalesPeak Sales
Low cost per customer due to fabric and reduced dutiesLow cost per customer due to fabric and reduced duties
High profits then lower profitsHigh profits then lower profitsProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
PricePrice
High profits then lower profitsHigh profits then lower profits
Maximize profits while defending market shareMaximize profits while defending market share
Diversify brands and models, Trousers , suits, inner-wears, lifestyles,accessories .
Diversify brands and models, Trousers , suits, inner-wears, lifestyles,accessories .
Price to match or best competitors (Medium Pricing)Price to match or best competitors (Medium Pricing)
DistributionDistributionBuild more intensive distribution150 showrooms, spread across 69 towns. Build more intensive distribution150 showrooms, spread across 69 towns.
AdvertisingAdvertisingStress brand differences and benefits.
Honestly impressive.Stress brand differences and benefits.
Honestly impressive.
Marketing Strategies For Product Life Cycle