MARKETING MANAGEMENT

GROUP ASSIGNMENT

Group 5

Ramya V 2014PGP292
Prathmesh Sonawane 2014PGP373
James Jim 2014PGP141
Shilpa C 2011IPM099
Sauvik Mukherjee 2014PGP337

CHANNELS PETER ENGLAND & JOHN PLAYERS

EXISTING MARKET CHANNEL

Garment factories

Owned stores/
Exclusive
brand outlets

Discount
stores

Exports

Wholesalers

Online
retailing

Distributors

Multi-brand
outlets

Manufacturing Garment factories

Both Peter England and John Players, source only from factories that are
compliant with the Factory Act, and each factory is independently audited by
the International Textile Services (ITS) and Socit Gnrale de Surveillance
(SGS) for international clients such as Louis Philippe, Marks & Spencer and
Van Heusen.
Retail
The Indian apparel industry is segmented into two sectors:

Domestic segments
Export segment

In the domestic segment, these brand reach customers through Owned Stores/Exclusive Brand
Outlets, discount stores and through Multi-brand outlets.

Major Indian garment manufacturers of brands like Levis, John Player, Arrow, Wrangler, Allen Solly,
Louis Philippe, Van Heusen, Peter England, San Frisco, Byford etc. alongwith top retailers like
Shoppers Stop, ITC Lifestyle etc. are working towards implementing collaborative supply chain
practices and global standards by adopting the universal EAN barcode. EAN.UCC standards will
enable common and unambiguous identification of garments and other general merchandise by
retailers, manufacturers and their other distribution supply chain trading partners.
Online-retail
Online retailers such as Flipkart, Amazon, Jabong and Snapdeal carry both John Players and Peter
England brands. They are doing well in the online space as customers have a good perception about
the quality of these brands. Hence, they do not sense the need to touch and feel the product before
purchase. However online retailing in general, has more to do with consumer's comfort with touch
and feel, and the act of shopping. Internet buying for apparel in India will take time to evolve to a
point where online retail will be a really viable alternative channel.

GENERAL SUPPLY CHAIN PROCESSES FOR JOHN PLAYERS AND PETER ENGLAND
Producer model
The MNCs invest in processing and weaving segments of the value chain.
The operating model
The MNC invests in the processing and weaving segments of the textile value chain. This is done by
acquiring an equity stake in the processing and weaving units. Since the processing segment is fraught
with problems related to quality conformance across various units, the MNC might set up a common
processing facility for a group of weaving clusters. Orders are allocated to these units based on the
manufacturing competence and capacity utilisation. There should be a centralised sourcing system of
raw materials to leverage advantages of large orders. This centralisation also helps effective order
tracking. The MNC might also invest in a captive power unit for cost containment. The MNC should
also strategise its production with the retail demand, as many retailers usually communicate their
buying plans 9-10 months in advance. The MNC might also promote the fabric with the final productapparel in case of high-value garments, where the quality of fabric makes considerable difference.
Key advantages of this business model
This model best exploits the various incentives in the processing and weaving segments that are
provided by the Government. It improves bargaining power with yarn suppliers. Since the weaving
and processing segment is highly fragmented, this business model will bring significant organisation
in the sector

The Apparel-manufacturer model (followed generally by Peter England)

Garment manufacturing model: The MNC invests in designing and manufacturing of garments
Features of the operating model. The MNC invests in a cutting/stitching and garmenting unit. The
output is sold under the MNC brand. It caters both to export as well as domestic markets. This
investment could be through a JV with an indian player, or as a standalone unit. The MNC offers
technology support to the weaving and processing clust ers to import best-in-class equipment from
other countries to enhance the quality of fabric. It also agrees with the clusters on adherence to
stringent quality norms. For better order management and to avoid supplyside shocks, the MNC
announces its buying plans well in advance.

WHY ITC MIGHT HAVE AN UPPER ADVANTAGE OVER PETER ENGLAND?

New developments in the field of supply chain in garment Industry (ITC)
These standards have been developed by EAN International, Brussels in collaboration with global
retailers and suppliers over 30 years back and are accepted as the de-facto global standards in Retail.
Over 5 billion EAN barcodes are scanned at POS counters each day across the world.
This will immediately eliminate current practice of affixing proprietary item barcodes by retailers on
their garments and other general merchandise, saving lakhs of rupees in direct barcode labeling costs.
Retailers would also be able to move their merchandise directly to their retail shelves without wasting
time currently spent on affixing barcode labels/tags which locks up costly merchandise.
Use of common barcodes on physical goods in conjunction with electronic information flow using
global EAN.UCC standards for ordering, invoicing, dispatches etc. will streamline business processes
and eliminate frequent manual errors saving avoidable administrative costs to all.

In addition, garment manufacturers and retailers can establish collaborative supply chain processes
which result in automated, vendor managed replenishment cycles, real time stocks & returnables
management, goods track & trace, sales forecasting based on actual consumption, efficient product
introductions, category management etc.
International buyers like Wal-Mart, Target, Home Depot, Cades (France), OTTO Group (Germany),
Woolworth (UK), Lowes, and Lord & Taylor have instructed their Indian suppliers to adopt
EAN.UCC global supply chain standards in barcoding and in data alignment/synchronization of
product related information.
At ITC, we have switched over to use of EAN barcodes for our John Player and Wills Lifestyle
brands. We were able to do this with minimal effort and without disruption in our supply chain
processes, says Chitranjan Dar, CEO, Wills Lifestyle.
EAN India - Set up as a not-for-profit organization by the Ministry of Commerce jointly with Apex
Chambers of Commerce and Industry & other organizations, it administers and promotes the use of
globally accepted, ISO endorsed EAN.UCC standards in the Indian industry. It is an affiliate of EAN
International, Brussels which overseas the operations of 100 EAN organisations across the world.

SUGGESTIONS FOR IMPROVEMENT

Well integrated and lean supply chains
Shorter cycle and delivery times .The Indian textile industry has a long and complex supply chain.
This affects not only the cycle times, but also the delivery times. The average cycle time in the Indian
textile industry is about 45-50 days, which sometimes extends to 80days. The mean delay in the
supply chain from procurement of raw materials and to export of finished goods is 15.5 days. Shelf
life of fashion driven products is very short (approximately 45days), hence such delays are untenable.
These delays not only affect time-to-market, but also Work-in-Progress (WIP), variability of supply
chain and hence the cost. Therefore strong deployment of industrial engineering with particular
emphasis on cellular manufacturing and JIT systems, in order to establish lean supply chains is
extremely crucial for manufacturers. Presence across the value chain, vertical integration and
investment in captive power units helps in effective demand assessment, resulting in greater control
over the supply chain and cost reduction.
Customer-centricity in products and brand competitiveness
A review of products imported by the US from China reveals that the top three products in terms of
percentage increase in imports belong to the synthetic products category. However, Indian products

dont feature in this list. Synthetic products contribute to nearly 50 per cent of the global trade and
India lacks a prominent position in this segment.
This is also true of other segments such as nano-textiles, home textiles and industrial textiles. This
shows that a clear understanding of the demand in world markets and hence developing product
portfolios to cater to that demand is crucial for increasing market share.

PROMOTION - PETER ENGLAND

CUSTOMER LOYALTY PROGRAM
Communication objective:
The primary objective of the customer loyalty program is to improve customer retention. Moreover
loyal customers endorse the brand, thereby increasing the customer base.
The program:
A unique and efficient rewards program called the Peter England Milestones Program that allows its
members to earn points on every purchase. Customers can register for this hassle free program by
registering at the cash desk of any Peter England store at the time of purchase.
This program has the following features

Instantly accumulate and redeem points for rewards

Each milestone point equals 1 rupee
Earn higher points as you move up the tier
There is no minimum point balance required for redemption
Points earned will expire in a year from last transaction
Special discounts on birthdays

Milestones point structure:

Membership

Purchase Value

No. of

%Points

Bonus points

Classic
Silver
Gold
Platinum

Rs.0 Rs.3000
Rs.3001 Rs.6000
Rs.6001 Rs.12000
Rs.12001 and above

Purchases
1
2
3
4

3%
5%
7%
10%

per purchase
10
20
30
40

ADVERTISEMENT CAMPAIGNS

Peter Englands advertisement campaigns are constantly revised. Below are the major campaigns
introduced by the brand.
Year 1997, The Honest Shirt Campaign
Communication objectives:
The primary objective of his campaign was to launch the brand in India and position it as an
international quality brand at honest-to-good prices.
The campaign:
The launch of Peter England nationwide through a massive advertising campaign marked the entrance
of the first international mid-priced shirt in India. It was clearly positioned as an international quality
brand at honest-to-goodness prices. This campaign created emotional payoffs for the customers,
without making any tall claims about the brand.
The brand found immediate acceptance with a large segment of the male population who wanted to
look good at work without having to pay a heavy price. Peter England sold 400,000 shirts that first
year.
Year 2002, Honestly Impressive Campaign
Communication objectives:
The aim of this campaign was to make the brand more than just value for money proposition but also
as a lifestyle brand. It has maintained its value proposition unchanged.
The campaign:
This was a TV campaign. The TV commercial captures the never say lose attitude of the youth. TV
commercial was telecast after nearly six years as it had drifted away to print and outdoor in the
past. However it was on a smaller scale compared to the next campaign that the brand.

Year 2010, Beginning of Good Things Campaign:

Communication objectives:
The objective of the Young Indian Campaign was to reposition the brand on a new platform.
The campaign:
Peter England has come up with a campaign, featuring Southern movie star Siddharth in colourful
denims and smart formals. The new campaign, designed by DDB Mudra South, is aimed at late
university students and early jobbers.

Formal wear as a category has seen a lot of evolution in the last 5-6 years. This evolution is led by the
young workforce in the country. Peter England wanted to remain appealing to this target group by a
better understanding of the way they interpret office-wear. The challenge was to take their
interpretation and give it a slight edge, while still conforming to macro office-wear codes. The line
had to take a step forward in letting consumers express themselves. This was the genesis of the Young
Formals line.
Peter England also changed its tagline to Beginning of good things.

MEDIA USED
The initial launch campaign saw a mix of both Television and Print media. They sponsored mailoriented programs on the television such as news and sports. However Peter England soon drifted
away from the Television media to Print and Outdoor media. It revised its strategy with the honestly
impressive campaign where it embraced the Television media again.

SUGGESTIONS FOR IMPROVEMENT

Make the loyalty program more flexible
Loyalty programs that succeed are those that make news. Therefore, Peter England has to challenge
the status quo, and introduce changes to its existing program. This can be done by:

Reviewing available new loyalty technology and how it might help the company increase

customer value while focusing on the companys business goals.

Talking to customers in order to ascertain whether the existing program is hitting its mark or

not.
Experimenting and constantly evolving in order to maintain a unique program that caters to
the existing customer base.

PROMOTION - JOHN PLAYERS

John Players was launched by ITC in the year 2002 as a fashion brand for the male Indian youth. Its
tag line is Play it cool. It has over 220 exclusive stores in the nation and over 1300 multi brand
outlets.

Promotional strategies:Advertisements
It is a form of mass communication intended to reach a large amount of people and persuade them to
purchase or take some action upon products, ideas or services.
John player focusses on advertisement for creating its brand image. It had signed Hrithik Roshan as
its first brand ambassador. However recently he was replaced by Ranbir Kapoor for the digital
campaign. The main reason for selecting Ranbir was that he had a plenty of hit movies this year and
was more popular among the youth. To make the advertisement successful, John Players has come up
with a new strategy of 3D advertisement. The bill boards are designed to give a 3D effect and are
displayed at high traffic location to attract maximum attention.

Events and experience

Companies organize events to promote about their products and create an awareness among the
audience. John Players has also come up with many events to generate interest among the youth and
promote about their product line. John Players has also sponsored India Fashion Week which has
helped it to have an impact on its product.

Public Relations and Publicity

Publicity includes art exhibitions, event sponsorship, conducting a poll etc to manage the public
perception of the brand. John Players has organized many events for maintaining its public relations.
The parent company of John Players is associated with NGO Child Rights and You (CRY) for
welfare thus maintaining public relations.

Direct marketing
Direct marketing uses internet, email, personal calling for promotional activities. The official website
of John Players- www.johnplayers.com allows customers to view and buy the products online
through the net. Users can also get knowledge about the offers and other promotional activities and
also take part in contests.

Personal selling
It consists of door to door selling in which the customer directly interacts with the salesperson of the
company. John Players is not involved in this type of selling and thus focusses more on opening retil
outlets to increase its reach.

Sales promotion

Under sales promotion company offers discounts, rebates, coupons, organize contests to garner the
attention of the consumer. John Players comes up with festive offers and it offers a discount of 50% on
buying a second shirt. It has also launched a contest- The Cool Shutterbug Contest to attract
customers. It also distributes scratch coupons to customers with the offer of winning rewards, prizes
and discounts.

SUGGESTIONS FOR IMPROVEMENT

Since John Players focusses on the youth segment of the market, it should move to social networking
sites like Facebook, Twitter, and Google+ to promote about its product line and offer promotional
offers. This would help in garnering a lot attention as more of the youth is used to spend a lot of time
on these websites.
Also it needs to increase the number of stores to increase the visibility among the customers
especially the middle class youth who perceives this brand as a value for money brand.

Conclusion:
In the domestic segments the brands reach their customers through Owned
Stores / Exclusive Brand Outlets , discount stores and through multi-brand
outlets. Trough implementation of collaborative supply chain practices and by
adapting universal EAN barcodes they are trying to reach the global standards.
Online retail space has also added a complete new dimension , though its
struggling to deal with the shortcomings like touch and feel . The existing
operating model of these giants have several advantages like exploitation of
various incentives in processing and weaving segments that are provided by the
government. It also gives an edge over supplier. The apparel manufacturer
model which is followed by Peter England is good to absorb supply side shocks
and uncertain order management. By utilizing EAN barcode practices ITC is
creating an operational threat for Peter England . At this point , what needed is
Customer-centricity in products and brand competitiveness. For gearing up their
promotional activities its essential to make the loyalty program more flexible.
Better utilization of social networking will help these companies to better
connect with the targeted segment. They have already set a high quality mark ,
and a value for money status for themselves , but to increase visibility among
the customers they need to set up more stores in the metros.

CONCLUSION :

REFERENCES
www.madurafnl.com- Press releases: Peter England reinvents with a slew of initiatives
http://www.adityabirlanuvo.net/ - Peter England Menswear Brand Division
http://www.bestmediainfo.com/
www.ibef.org- Indian brand equity foundation, ITC lifestyle
ITC financial report 2013-2014 and 2014-2015 Q1 report