SUBMITTED BY :

PRIYANKA CHAUDHARY
KNR13TD22, SEM Vth

STP FOR PEPE JEANS

LONDON

Acknowledgments
Firstly, I would like to thank to Mr. RAJESH S. Faculty of my business in design subject for
taking their time off their busy schedule to teaching the procedure of the business and
management internal assessment to help me to understand about the brand and the company.

INDEX
S. No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

TOPIC
Introduction
History
Marketing & Advertising
Market Share
Product Line
Brand
Target Segments
STP & SWOT Annalysis
Conclusion
Refferences

PAGE No.
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2
3
5
6
9
10
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INTRODUCTION (PEPE JEANS LONDON)

Pepe is a renowned brand in the apparel industry and is amongst the top international jeans
and casual wear brand. Pepe offers a wide range of products to its consumers and tries to
cover the intended target market through its advertising and promotions. The brand is present
across the globe in almost 100 countries with numerous loyal customers. A Brief History
Headquartered in Madrid, Spain - Pepe Jeans London, was started in a small market stall
running only on weekends in West London by three brothers from Kenya - Nitin, Arjun and
Milan Shah in the year 1973. The brothers wanted to set up a British brand of jeans that
would be known globally. The jeans that they sold were of good quality and fitting and within
no time, the business started to boom. The brand was inspired by London street-wear style
and was called Pepe because it was a short two syllable word that was really fast to
remember. Pepe was the first brand which enforced that jeans should not be sold hung like a
trouser for which they even had to fight with the retailers. By 1980, the brand was competing
against the big rival brands like Levi's, Lee, etc.
Pepe Jeans London was started as a jeans wear brand that became a best seller in London. It
soon expanded to also become a denim wear brand with numerous styles in top wear like,
denim jackets, shirts etc. along with jeans. The differentiating point is that Pepe is a denims
and beyond company. Today, Pepe Jeans London is a complete casual wear brand with an
array of knits, wovens, denim bottoms, fashion denims, nondenim and accessories under its
umbrella. Pepe prides itself on its strong fashion forecasting and trendsetting abilities.
Inspiration buzzes from Europe and the ramps of haute couture in Milan, Italy, etc Today,
after being the best selling denim brand, Pepe is creating a niche for itself by customising the
offerings for its target audiences. The brand going into launching Mens Exclusive at Heera
Panna (Mumbai) and has exclusive teens stores for its 1016 Pepe Teens collection at Mumbai,
Bangalore and Pune. It has recently opened its Ladies Exclusive store at Eva mall
(Bangalore). Pepe Jeans has the unique distinction of being the largest casual wear brand
based out of the United Kingdom, competing on a Global basis. Constant innovation and
understanding the needs of its target audiences has enabled Pepe to be the global leader in the
denim market.

HISTORY
1973: Established as weekend road side stall by three brothers Nitin Shah, Arun Shah and
Milan Shah. Their shop was located at Portabello Road Market, West London. Before the
brand began Nitin Shah worked for a petrol station and was spotted by a man named Shantilal
Parmar who ran a jeanswear business. Shantilal Parmar took Nitin Shah on from the petrol
station to work for him as a commissioned agent selling jeans. From these begingings and
learning all about the jeanswear industry, fabrics, stitching, washes, packaging and marketing
from Shantilal, Nitin and his three brothers started there own company Sholemay Ltd trading
as Pepe Jeans. Ultimately Shantilal Parmar company manufactured jeans for the three
brothers which they sold on the stalls and to other retailers whom they knew.
1975: Number of market stalls grew to 4. This also included Kensington Market, which
housed many other denim sellers many of which also became well know jeanswear
wholesalers. Due to the fact that Pepe was growing bigger it was necessary to open a
boutique at Kings Road, London than a boutique on Carnaby Street followed and latter a
warehouse and offices in Avonmore Trading Estate. In the 80's the brand grew even more
and it became one of Europe's best clothing brands. Famous bands like The Smiths made
campaigns for the brand.
In 1983 Pepe Jeans London started its international expansion to Ireland and two years later
crossed the channel towards Continental Europe and USA. Nowadays Pepe Jeans London is
one of the principal jeans brands in almost every country.
After getting an important presence in the denim wholesale stores of most prestige, the
company started to make a strong bet for the exclusive Pepe Jeans stores (own ones or
franchises) that has made the Pepe Jeans London store network to be present in Europe, Asia,
America and Oceania.
Pepe Jeans was launched in India in 1989. The brand is currently a leading player in the
premium jeans and casual wear segment, enjoying a market share of more than 25 percent.
Pepe Jeans London, the complete denim and casual wear brand, entered the Indian market in
1989 and is today the No.1 international premium denim brand in India. In India it bridges
the chasm that exists in the casual wear segment below the upper tier. Pepe Jeans is a global,
fashion brand and sells everything one would associate with casual wear like jeans, t-shirts,
shirts, jackets, casual pants, capries, shorts and accessories such as duffel bags, caps, wrist

bands, wallets, belts etc. Pepes business in India can be broadly classified into 50% denims
and 50% casual wear.
MARKETING & ADVERTISING
Pepe works on a 360 degrees approach on the marketing communications strategy, involving
both above the line and below the line activities. Billboards print advertising in national and
regional newspapers and all lifestyle magazines constitute Pepes above the line strategy. All
these aim at creating visibility, top of the mind recall with the end consumers. These above
the line activities need to be strongly backed by PoPs, innovative window displays, and larger
than life visual images in the Pepe stores reinforcing the communication received by the
consumers through above the line initiatives. This also increases the consumer interaction
with the brand Pepe and its products. The in store activities of Pepe includes PoPs, joint
promotions, customer interactions through contests, fashion shows, games, VJ visits etc. All
in store activities are promoted through innovative PoPs like danglers, tent-cards, bannerstands, wobblers etc. Pepe undertakes many of joint marketing initiatives with relevant
brands as they drive large value for the end consumer. Since both brands are targeting the
same set of consumers, both get the benefit. Pepes initiative with Times Teenage Card,
Fosters for the Australian cricket team, with Lycra and MTV for Style Awards are few
examples of such joint initiatives.
STORE FORMATE
Pepe Jeans London has a distinct offering in comparison to its competitors. The brand has
positioned itself as an International, fashionable, premium jeans and casual wear brand.
Three retail channels, EBOs, large format stores and MBOs, form the base strong distribution
network across the country in Tier II and Tier III cities apart from the metros. Each one of
these does not compete but complement each other and equally contribute to overall growth.
Pepe Jeans London has gone for extensive reach and availability across India.
Pepe Jeans currently has 155 exclusive brand outlets, 90 plus large format stores and presence
in over 1500 multi brand outlets. We realised that small towns are getting increasingly brand
conscious, and therefore we introduced a number of exclusive Pepe Jeans outlets in smaller
towns of coastal Andhra Pradesh like Ongole, Vijaywada, Kakinada, Warrangal; as well as in
other smaller towns like Aizwal, Itanagar, Dimapur and many more. Any exclusive Pepe
Jeans outlet is anywhere between 800 sq. ft 1200 sq. ft in area.

Pepe Jeans London is one of the fastest growing denim and casual-wear brands in the world
with two main distribution channels, Retail and Wholesale, and a non-stop increasing
Logistic Net.
Facts about PEPE JEANS:

Present in 65 countries of the 5 continents

Great Wholesale development: 6.800 doors around the world

Increasing Retail business: 310 Pepe Jeans stores

2.200 employees

More than 50 fashion & graphic designers

Purchase of 10.000.000 garments per year

3 full equipped logistic centres & warehouse in Europe and Asia

Obstacle in launching the brand in India

In 1989 when the brand established itself in India, the jeans wear market was in its nascent
stages. The concept of jeans being a comfortable everyday wear was unheard of and those
who wore jeans imported them from other countries. To educate such a consumer market was
difficult and as expected the market took considerable time to mature and develop. The
distribution and logistics was a hurdle because the distributors, franchisers, small multi brand
outlets were operating on age-old practices and large format stores were non-existent then.
Subsequently, over the last decade both the distributors and the end customers have been
exposed to international trends and fashion. The media and advent of international brands
into the Indian market lead to greater awareness. This has helped in development of the
market for these denim brands. The transformation has been gradual and is a result of
collective efforts of the international brands.

MARKET SHARE
The total size of the denim market is estimated to be at Rs 2000 crore. The denim market in
India is growing at the rate of 10 15 per cent per year. Pepe Jeans contributes around 25 per
cent in the premium jeans and casual wear market.
The annual turnover of the company, currently, is Rs 350 crore; and we hope to reach a
sizeable Rs 500 crore by the next fiscal.

The Market Share for Levis is the highest i.e. 49%, followed by Pepe at 14%. Other brand
includes UCB, GAS, Flying machine, etc.

PRODUCT LINE
Apparels

Accessories

Footwear

Wallets
Shirts
Belts
Jeans
Napkins

Shoes

T-shirts
Bags
Tops

COLLECTIONS
PEPE JEANS LONDON'S RUBY & NEW BROOKE REDEFINE WOMENS DENIM
TRENDS
Fuelled by a passion for innovative cutting techniques and armed with an eye for sexy
silhouettes Pepe Jeans London continues to set the pace for women's denim trends. Pepe
Jeans London's reputation as the hottest denim brand on the planet is underlined for Autumn
'12 with two of their latest block-rocking jeans styles, Ruby and New Brooke.
PEPE JEANS LONDON-AUTUMN WINTER 2011 MAINLINE CAMPAIGN
Pepe

Jeans

London

introduces

its

rock'n'roll

family

for

Autumn

2011.

International denim brand Pepe Jeans London underlines its rock'n'roll credentials for
Autumn 2011 with a new fly-on-the-wall ad campaign offering an access-all-areas glimpse
into the secret life of a fabled rock band. The campaign's fictional storyboard follows the
bohemian and sometimes hedonistic exploits of an imagined gang of widely adored minstrels
and their rag-tag assortment of friends, family and followers. Shot against the aristocratic
backdrop of Edwardian country house Sennowe Park in the heart of Norfolk, England, the
campaign's storyboard captures the wild-child essence of 1970s rock'n'roll folklore and
repaints that world of beauty and youth, glamour and excess with a contemporary brush.
PEPE JEANS LONDON AW11 MENSWEAR

Pepe Jeans London takes a fresh look at the vintage archives for its Autumn Winter menswear
collection. Archive-informed clothing and an appetite for vintage nostalgia help define Pepe
Jeans London's Autumn 2011 menswear collection. The men's trend-telescope has rarely been
trained so intently on early 20th Century clothing. From rugged turn-of-the-century looks
more commonly associated with the birth of the industrial age and pioneers of the Great
Outdoors to the 1950s collegiate styles which helped define the modern preppy aesthetic,
Pepe Jeans presents a series of clearly segmented trend stories which are as dependable and
iconic today as the first time they were worn.

Collegiate

Active Fashion

Portobello

Urban Fashion

73

Khaki 309

Heritage by Pepe Jeans London

Classic

PEPE JEANS LONDON AW11 WOMENSWEAR

From runway-led looks to city-chic trends Pepe Jeans London lights the Autumn 2011
fashion fuse with its most directional collection yet. Divided into three main themes, the new
collection takes a modern look at four archive-inspired trends from the flamboyant 1970s
through to the minimalist 1990s.

Modern Heritage

English Weekend

Bohemian Deluxe

73

BRAND
Pepe Jeans
London

encompasses
brands:

Pepe

two
Jeans

London and Pepe Jeans

Junior. Pepe Jeans London includes ladies and men complete collection including
accessories. These collections are created with a focus on quality in terms of the fabrics, fit
and finish, merging high fashion attributes with ground level pricing, and thus providing the
look demanded by the market. The collection ranges from fundamental basics to sophisticated
cocktail dresses, genuine leather jackets, without forgetting its specialist, the Denim offer.
Within the denim we can specially underline the most premium part of it: the 73 collection.
The company also designs a Quick Response Collection and a Precollection once the key
trends of each season appears in the most important catwalks and other fashion hotspots
which were easily adaptable to the mass market, to meet consumer preferences.
Pepe Jeans Junior includes as well girls and boys complete garment and accessories
collection.
These 2 brands are complemented by other product categories as Footwear, Eyewear or
Stationery thanks to the narrow collaboration with some license partners.
PEPE- Lifestyle and attitude: The Pepe Jeans look is trendy and fresh, yet stylish and
modern in every sense. The Pepe Jeans girl and guy, both between 20 and 35 years old, are
outgoing and urban and have developed their own fashion identities. Attitude and up-to-date
could be words that describe well their way of living.
Their Values:

Our success is based on the Honesty of our people.

Our reason for existing is the Customer.

Our strength is our Team work.

Progress requires us to be Flexible.

Our Positive Attitude is essential for success.

TARGET SEGMENTS
For India Pepe Jeans does not blindly follow the European designs and sizes. The waist-tohip ratio is unique for women in Asia. Pepes designing team realises these significant aspects
and the need of Indian customers. Its not the fit alone but all the brand value and brand
aspirations that makes Pepes products so comfortable. 50% feedback and 50% creativity are
the inputs that go in to the creating of Pepe Jeans. Each of Pepes exclusive stores files a daily
report with the head office. This deals with complaints, comments, compliments, suggestions
and requirements. Pepe Jeans also maintains a Customer book for feedback. The
merchandizing and design team conducts regular visits to the stores too. So Pepe keeps a
close watch on the market and the response of customers.
TARGET AUDIENCE
Primary target audience for Pepe youth collection are 16-25 year olds belonging to SEC A+
and SEC A section. They are the English speaking brand and fashion conscious individuals.
Informed of the latest trends, they prefer to carry an individualistic style. While grooving to
the latest in music, they demonstrate equal interest in sports as well. Consumers above this
age group too are becoming fashion conscious and take extra efforts to keep up with the
trends. Pepe is experiencing target segment spill over to age groups above the main TG too.
Recently, Pepe has started to target the 10 to 16 year old teenagers also as there was an
opportunity and absence of branded apparel player in this segment. Pepe Jeans London
recently launched 1016 Pepe Teens collection exclusively for teens. The collection, which is

in the second year of its inception, is available in all the Pepe Exclusive outlets in the country
and 1016 Pepe Teens exclusive outlets in Mumbai, Pune and Bangalore.
BRAND POSITIONING
The main competitors for Pepe are Levis, Lee, Lee Cooper and Spykar. Pepe is very
distinctively positioned, as a brand for the youth with a strong attitude; a brand not only for
the youth but also for everyone who is young at heart. Pepe Jeans London offers fashion that
can best be described as, young cool, extrovert and casual. An attitude that sets you apart
from the group is the characteristic of every garment of Pepe Jeans London. Apart from this
the aggressive pricing strategy of Pepe also plays a major role in differentiating our brand
from the rest.

Price Range :
Product

Price (Rs)

Jeans

1599 - 2599

Shirts

1199 - 1999

Shoes

7999 & above

Bags

899/-

Organisational structure

Store Manager

Pepe Jeans
Parent Company

Pepe Jeans Incorporation

Category

Apparel and accessories

Sector

Lifestyle and Retail

Tagline/ Slogan

Pepe Jeans London

A brand, which is really innovative, stylish changing

USP

with variety at an affordable price.

STP
Men and women who like contemporary style of

Segment

fashion with a rebellious attitude.

Young urban Men and women from the upper middle

Target Group

class
Pepe Jeans is a premium and international brand,
which houses casual wear with a heart of London in

Positioning

it.
SWOT Analysis
1. Pepe Jeans is present over 100 countries and
employs more than 5000 employees all over the
world.
2. The brand is the fastest growing denim brand and
is 500 million denim and casual wear brand.
3. The brand had a different view of selling jeans and
was against hanging them and even fought with the
retailers to change this fashion, which was a big hit.
4. The brand has entered the elite segment of the top
four denim producers in the world.
5. The brand has always been constantly producing
unique silhouettes, which the brand is very famous
for across Europe.

Strength

6. The brand uses extensive advertising where the

brand often teased the boundaries of acceptable

social imaginary and norms, which had a big
attraction among young consumers.
7. The brand has a heavy brand following and is has a
strong financial position in the denim industry.
8. The brand has signed international celebrity brand
ambassadors which enhances the brand equity.
1. Constantly changing fashion trends means
inventory issues
2. The brand has several competitors hence high
Weakness

brand switching
1. The brand should expand its products and services
throughout the world.

Opportunity

2. The brand can enter into the kids wear segment.

1. Switching cost between brands is very low, so
there are regular price wars among competitors.
2. Increasing Competition from brands like Lee, levis

Threats

is increasing never like before.

Competition
1. Lee
2. Levis

Competitors

3. Wrangler

CONCLUSION

Pepe Jeans London has a global advertising campaign in all the countries it has presence.
Pepe believes in giving away a consistent brand message across the world, whereas
localisation of advertising campaigns distorts the brand identity. All Pepe advertising
campaigns portray the brand identity, which talks about the youth with a strong attitude.
The visuals are so strong accompanied by the Pepe Jeans London logo, that they convey
the entire message with no need for copy.
Pepe Jeans London has shown a growth of approximately 35% since the last 4 years where as
the industry is growing at the rate of 15%. It expects to maintain the same kind of growth for
the next four years too. Retail expansion plans, and penetration into mini metros and smaller
towns shall be the focus as the potential is still untapped. Customers in metros spend
considerably on the other lifestyle products but in the mini-metros and smaller cities clothing
is still a subject of fashion and the consumer there is ready to spend more. Pepe plans to open
exclusive outlets in the mini- metros and high street fashions to strengthen its position. A
flagship store has recently been launched in Jaipur. Similar stores in Udaipur and Kota are in
the pipeline. Pepel also intends entering new markets like Uttar Pradesh and Bihar. Pepe will
also open its exclusive stores in all the upcoming malls and retail outlets as it gives brands
like Pepe Jeans London direct exposure and reach to its target customers.

References

http://retail.franchiseindia.com/interviews/established/Pepe-Jeans-Has-around-25-marketshare-in-India-141/
http://en.wikipedia.org/wiki/Pepe_Jeans
http://www.fibre2fashion.com/face2face/pepe-jeans-london/chetan-shah.asp
http://www.fibre2fashion.com/news/company-news/pepe-jeans/newsdetails.aspx?
news_id=36665
http://www.fibre2fashion.com/news/company-news/pepe-jeans/newsdetails.aspx?
news_id=8585
http://www.progress.com/progress_software/docs/pepe_jeans.pdf
http://www.scribd.com/doc/18793408/Pepe-Brand-Identity-Prism