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• • Can a product be sold without any marketing gimmicks or film actor or the hype? Can you sell a product honestly?
Peter England did that successfully and captured the Indian middle class minds honestly. Launched in the year 1997, this brand has captured the Indian middle class mind, that too honestly. Peter England as a brand has a rich heritage. It began in the year 1885 when foundation was struck for 5 storied building in Ireland. In 1888 Peter England factory came in to being. It was during 1889-1902
that the company expanded when it got the order for outfits for British soldiers for the Boer war. The order was large and it demanded quality merchandise at Honest –to- goodness price. The brand came to India in 1997. During that period there was a huge potential for a mid segment shirts in the 60mn pieces Indian shirt market. The industry was dominated by in store brands and the consumers have to painstakingly check for the right shirt. The then owners of Peter England (Indian Rayon) wanted to tap this segment. Thus, evolved the idea of a brand that aims to shorten the buying process of the consumer . Research also revealed that the consumers perceived premium shirts as overpriced and there was a need for such a national brand. Also another insight was that the market had a perception that good things happen to people who wear good clothes. Peter England was initially positioned as an “Honest Shirt”. The strategy clicked and has to click because the product was very good and the price was excellent. It just fit in to ones budget. The target market for the brand was the 24-28 ambitious and career oriented youth. In order to make sure that the excitement remains, Peter England came out with various ranges and varieties of shirts. The brand also extended to trousers with the same positioning. Although some of the variants like English Cottons compromised on quality , the brand still enjoys a good equity in the targeted customer’s mind. In 2002 the brand made a slight makeover. The positioning changed to “Honestly Impressive”. The aim is to make the brand more than just value for money proposition but also as a lifestyle brand. It has maintained its value proposition unchanged. Peter England is a brand that clearly shows a marketer that it is possible to sell... Honestly.
The Peter England People (PEP) brand is marketed through Peter England Fashions and Retail, a division of Aditya Birla Nuvo, which is one kind of specialty store. The PEP brand, which is distinctly different from its more retail brand, will be rolled out through 80 stores spread over 34 cities across India in the next three to five years. After Mumbai, the next stop for launching the new retail brand will be Bangalore, which will be immediately followed by Hyderabad and Delhi by early June. And by the end of the fiscal, the company expects to have 10 such stores across different cities. Each store will be spread over 10,000 to 15,000 sq ft. PEP’s hallmark will be the concept of a family store, where Peter England brands of men’s, women’s and kid’s wear will be on the shelves. In this report , Peter England specialty store is taken for the analysis.
As shown into the above figure, pink dots are the Peter England specialty store into Pune. It is clear that Peter England adopts the Blanket strategy to capture the market means they cover particular area with their stores. E.g. in the figure they have covered area between shivaji nagar & aundh.
MERCHANDISE ASSORTMENT PLANNING
Peter England has simplified the buying process as shown into the below process with the help of their merchandise assortment in the specialty store. From Search for a good shirt across counters To Ask for Peter England as their first choice
Check for merchandise, color/design , Check color/design , decide on overall fabric/stitching, overall look , look brand/label Ask price Select 1 from many Buy a shirt with a label Start hunt all over Know price band Select 1 from Peter England Buy Peter England Customer is happy, comes back to Peter England
As shown into the figures - trousers, shirts, t-shirts, denims and ties are maintained as per colors. From this we can clearly make out that the stock keeping unit is color.
They are also maintaining the separate section for the New Arrivals which we can clearly see from the figure. This is good strategy to attract the costumer attention to the new product, so that company can safely introduce new product.
First I was confused that why the above lot of trousers are not assorted as per the colors, but after asking sales personnel I came to know that those trousers are very rare to be chosen by the customers(out of fashion). This is also the good strategy to slowly remove your product from the shelf space by allocating them whole separate section. Store persons tell these stocks non-moving stocks Now let us understand their assortment done into the Peter England Specialty Store with the help of the diagram (diagram is shown on the next page). As this is the case specialty store, there is no question of private labeling.
Peter England specialty store
TDenim Wallet Belts shirts s s
Sock Undergarment s s
Half Sleeve s
Half sleeve s
Full sleeve s
Full sleeve s
Stock Keeping Units
The retailer must make decisions regarding the merchandise offered depending on the sales targets and financial objectives of the store. Retailer should be very careful while deciding on the amount of stock to be maintained in each category; if large stocks are maintained in a particular category, there may not be sufficient resources left for providing a deeper assortment of goods. By taking into consideration this phenomenon all Peter England specialty stores are maintained on the basis of the per square foot SKUs. It means that as shown into the figures of assortment, every SKU are replenished in the fix quantity. Because of this there is no question stock out situation. Their Shirts Another criterion, to maintain the merchandise assortment standard across all Peter England stores Planet Fashion stores, is that recruitment of store manager and store personnel is done centrally.
There are some key factors that a retailer should take into account, while developing a layout prototype. The following are the optimizing factors: • Increasing sales • Maximizing returns per square foot • Coordinating the merchandise with the store format • Allowing flexibility in store design • Recognizing the needs and safety of the customers The store lay out should enable and incite the customers to move around the store to purchase more products than they have actually planned for. The store layout should tempt customer to walk along the inexpensive merchandise display section for impulse buying and then move on to expensive merchandise. There are three types of store layout 1. Grid layout 2. Race track layout 3. Free-form layout
From the above figures it is clear that to meet the optimizing factors of the store lay out Peter England specialty store has made the arrangement such that customer have ample space to move around ,and pick and choose from the merchandise at ease. This layout is expensive because of high cost of display aids. Above discussed characteristics of Peter England store layout perfectly matches with the free-form layout.
Generally, the first impression of a customer about a store is formed by its exteriors. The exterior of a store plays a vital role in attracting new customers and retaining existing customers. Retailer while planning their store exterior may consider any of the following option. From the below Peter England is using proto type structure. 1. Modular structure 2. Prefabricated structure 3. Prototype structure
4. Recessed structure 5. Distinct structure
Marquee: typically carries store name along with the trade marks. Here you can see Peter England marquee is not much blowy and outside signboard is put which matching with its positioning tag line “Honestly Impressive Entrance and display window: From the photograph we can clearly make out that there is only one entrance in the store which shows the display of merchandise which store offers, so that it can attract the pedestrians easily.
Door type and walk away: the door is of push-pull type which eases traffic congestion at the entrance and allows the customer to see interiors. There is ample of space available for the customer to freely move inside the store but because of the smaller parking space available, which is outside the store, it becomes very congested sometimes. (This can be seen from the second photograph)
The principal objective of any retailer is to maximize its sales and customer satisfaction, and to minimize the operational costs. Therefore, the interior of the store should be designed in such a way that it serves this purpose. The store interiors should be attractive. Peter England specialty store have considered two parameters • The value of space • Space utilization and allocation
Shirts Non-moving stocks Accessorie shirts s Counter
Seating arrangeme nt Trial rooms
Statues for promotion Ganesh a T-shits Statues for promotion Entranc
Overall designing of the store interior was good, but there is only one seating arrangement provided. They can increase the no. of seating arrangement to increase convenience level for the customers.
From the above photographs it is clear that specialty store of Peter England has a good visual communication which involves communicating with the customers through graphics,signs and certain theatrical effects inside the store. Lighting and Fragrance
Instrument for fragrance
In the store lighting is used intelligently to highlight the merchandise and attract customers to specific departments in the store as shown into photo. Some of the main objectives they have achieved with lighting are following: • • • Highlighting the displayed product. Capturing customer’s mood. Masking the unattractive features or places of the store.
There is also a mild fragrance available into the store to influence the purchasing decisions of the target market. Colors and Music:
As shown into the photos they have used mild colors (like cream color) for ceiling and walls, so that customer can recognize different colors of
various apparels very easily. There is no any kind of music which perfectly matches with the “Honestly Impressive “tagline of Peter England.
IT SYSTEM IN STORE
As shown into photo, they are using Bar-code reader to directly feed the information into their system, so that they can manage the inventory properly. They were using the software “Shopper -A Retail Solution”. This software is directly connected to their warehouse and it automatically generates order quantity by forecasting the demand. Because of the above Bar-code reading technique, they are able to get the real time information of various SKUs and also about the consumer preferences which help them to schedule the production.
1. Strengths • • •
Extensive range of office and casual wear Good quality label and branding Contemporary designs, colors and price Wide distribution , easy availability Well-orchestrated merchandising High market viability Use of latest information technology for collaborative planning , forecasting and replenishment
• • •
Product knowledge of the store persons is lower. Very few customer prefers to go for specialty store (may be brand loyal customers only). So specialty store format sometimes leads to lower sales. Pre- and Post- purchase uncertainty and anxiety over fit, quality, shrinkage, durability etc. because of readymade garments.
3. Opportunity • • • Large educated and working class available in pune is one of the opportunities because their target market itself is youth. They can also go for brand extension and store extension. Increased disposable income of the working class.
Belief of Indian consumers-“ Premium shirt brands were overpriced”, “good quality product at a great price” Threat from the local vendors and other big players.
zone primary secondary Fringe
competitor Specialty store of Lee, Wrangler and other local vendors Pune Central, Kakade mall etc Big mall like SGS and specially local vendors
SITE LOCATION AND SITE EVALUATION
The target market of the Peter England shirt is Young executives segment between age group 25-28 years. They have located their specialty store where large no. of executives are residing (like Aundh).Thus they have done the site location very cleverly by examining demographic ,economic, cultural and demand factors and by more concentrating on the economic & demographic factors like, • • • •
Per capita income is high in the selected site Employment rate is high. Density of education institutes is high Education rate is high No. of DINK (Double Income No Kids) if relatively high than other areas.
Generally a retail site is evaluated on the basis of the sales potential and the cost of doing business at that site. The following factors have been considered for selecting the site of Peter England specialty store. • Sales potential of the site is high because of average age of population is around 25-30 which is near to the target market of the Peter England. Access to site is easy because of the proper transportation facility available.
Access for pedestrians is easy because it is located on the road side. Peter England store synergies from nearby stores Leasing and occupancy term are liberal because Pune is education and business hub of India. Traffic flow during the day time at the selected site is high. It indicates the opportunistic nature of the selected site.
• Company should decentralize their system and link it with extranet & intranet. • They should give training to the sales personnel and store manager regarding product knowledge.
They can also provide customization of design of various shirts and trousers online and can take online orders.
• • • •
They can also do direct marketing to boost their sales Expand the definition of the target market to women and kids Provide proper parking space. Provide value adding activities like Wi-Fi facility or food facility inside the store.
Provide refreshments on regular duration like half hour, so that customer takes more interest into shopping and purchases more than planned.
They can also go for department store format ( like taking a place on lease in KAKADE mall)
Blanket strategy should be converted to large area coverage strategy to increase the sales or else they can use mixture of both the strategies like Wall Mart.
Display video advertisements outside the store with more creativity and distribute the pamphlets into the nearby area of the store.
Apply system approach means integrated supply chain. They can also change the traditional positioning –“Honestly Impressive “to increase borders of the target market.
• • •
Retail Management-ICMR publication www.peterengland.com Business Today(Magazine)
The Textile and Apparel Industry in India by Pankaj Chandra(Indian
Institute of Management,Vastrapur, Ahmedabad -380015)
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