Sample Project on Y-Gene Marketing Strategy

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Sample Project on Y-Gene Marketing Strategy Powered By Docstoc
					Group Members:

Muhammad Usman Mughal 071114

Waqas Farooq 071122

Naveed Hussain 071105

Shahryar 052124


This project is designed to provide a clear description about a new brand
     of jeans named Y-Gene in Pakistan. It includes firm’s introduction,
objectives, market analysis and segmentation, targeting, positioning and
  differentiation strategies. This report further provides knowledge about
 product, price, place and discusses the promotional mix in detail. It also
                     highlights the future plans of the firm.

 We have tried our best to fulfill the requirements of task assigned to us. It
 purely depends upon the reader to read it carefully and understand it.
  Overall this assignment provides a brief knowledge about Y_Gene in
                 In the name of Allah, the Beneficent, the Merciful.

    First of all we are very thankful to Allah Almighty, who provided us
   knowledge, energy and skills to avail opportunities and increase our
           knowledge and experience by completing this Project.

 Secondly, we are very thankful to Mr. Kashif Farooq (Jeans Exporter) and
    Mr. Khuram Khan (Dress designer at Levis) for providing us valuable
  information that really made it possible for us to complete this project.
Their guidance provided us every opportunity to understand the business.

Finally, we especially thank to our course instructor Mr.Jawad saleem, who
 guided us at every stage and provided us with valuable advices, so that
                      our work completed successfully.

Table of Contents:

Table of Contents:Introduction 3

Introduction 5

Organizational Profile 5

       Name of organization 5

       Nature of organization 5

       Type of organization 5

Mission statement 6

Pest analysis/Macro Factors 6

       Demographic factors 6

       Economic Factors 7

       Physical & Technological factors 7
       Social and Cultural Factors 7

       Political and legal factors 7

Market size 8

SWOT Analysis 9

       Strengths 9

       Weaknesses 9

       Opportunities 9

       Threats 9

Corporate Portfolio Analysis/ BCG Matrix 10

Micro factors 10

       Customers 10

       Competitors 11

       Supplier 11

       Distributors 11

Market Information System 11

       Data sources 11

       Research approach 12

       Contact methods 12

Segmentation 12

Targeting 13

       Strategy of target marketing 13

       Patron of Targeting 14

Positioning 14
       Positioning statement 14

       Positioning attributes 14

Differentiation 15

       Product differentiation 15

       Channel differentiation 15

       Personnel differentiation 15

       Service differentiation 15

       Image differentiation 16

4P‟s 16

       Product 16

       Level of products 16

       Product hierarchy 17

       Product attributes 17

       Product class 18

       Tools of brand building used by Y-Gene 18

       Price 18

       Place 18

       Promotional Mix 19

       Advertising 19

       Sales promotion and publicity 21

       Public relationing 21

       Direct marketing 22

Problems faced the brand 22
Summary 23

Future plans 24

Conclusion 25

Suggestion & Recommendations 26


After five years of serving with a jeans manufacturing unit, four friend joined hands to
launch their own brand of jeans on the basis of partnership. So a firm was established in
2004, as a result of partnership in which all of them contributed equal finance. Brand was
started with an innovative name of “Y_Gene”. Firm started its work without establishing
any unit and got its supplies of finished product from different units. Firm employed a
team of fashion designers that developed their designs, cuts and colors and then suppliers
were strictly supervised to observe those specifications by the company employed
fashion designers. The brands of Levis, HANGTEN and CHENONE were regarded as

Analysis of the cost, projected budget of sales and estimated profit analysis are given in
the coming pages. After three years company is in profit now. Initially it started with a 0-
channel distribution from its own exclusive outlets but then to push the sales; product was
placed on the well known stores of the country. Company is working as a local company
and is not exporting yet. Company is working exclusively in men jeans and main focus of
the brand is compassionate and fashion seeking youth of upper and middle income class.

Organizational Profile

Name of organization


Nature of organization


Type of organization

Profit oriented



                                 QUALITY CONTROL

                           RESEARCH & DEVELOPMENT



To achieve high market share and earn profit by establishing brand while generating huge
circle of loyal customers

Mission statement

“We are satisfying our customers by providing them with high-fashioned, self expressive,
high quality jeans, with diverse choice of colors, at reasonable price”

Pest analysis/Macro Factors

Demographic factors

In Pakistan percentage of youth in the population is very high which is favorable for the
business as the product is basically though for youth. Generation X and generation Y are
in reasonable percentage in Pakistan. Young married and bachelors, professionals, semi
skilled and skilled people are in favorable percentage to favor the product.

Economic Factors

Upper class people are in less amount but they may prove highly profitable as they are
gold and platinum customers. Purchasing power of middle class people is alsi rising
because of flow of plastic money in the country. Theses two classes are regarded as
potential customers of the company.

Physical & Technological factors

Infrastructure and structures are developing rapidly in the country and their present
situation is also healthy and satisfactory. Communication systems and transportation of
the material through road, railways and aerial channels is very much feasible.

As people are getting more educated, they are accepting innovations and pace of change
especially in the fashion industry is really at rise. Change is accepted at a satisfactory
readiness level and provides an opportunity to the up-coming company to experiment
new styles and innovations.

Social and Cultural Factors

People in Pakistan are becoming brand consciousness and this branding wave is at its
peak. Among youth jeans is very much liked and it is getting inside the culture. Moreover
psychographics are also favorable for launching a new brand of jeans. Innovations and
new trends are liked by people.

Political and legal factors

As such there is no legal and political restriction to launch jeans in Pakistani society.
However before launching the product, services of a qualified lawyer will help to deal
with all the specifications regarding the trademark and logo registration and to get
information about all the government liabilities necessary to be fulfilled by an upcoming
company. Political stability will favor the business and FDI in last 7 years encourage
investing in the business and provides a glimpse of the foreign companies as well on
political situation.
Market size

              Population of Lahore
              according to census
              Average house hold size
              in Pakistan according to                7 persons
              census department of

              No of families in Lahore

              Population in B+, A                   1,571,423
              segment (Above 40,000
              rupees income per month)                16% (251,428 families)


              According to census                   1760000
              department Pakistan has
              population division as                  Males 48%, Females 52%

              Male population                       844,800

              According to census        16-20yrs = 29%
                                           21-30yrs = 21%

                                           30-45yrs = 19%


                                           Total = 69%

              Potential buyers number

SWOT Analysis

            Previous experience in business

            Qualified fashion designers

            Masculine brand name


            Company is not having its own stitching unit

            Fewer outlets in the country

            Difficulties in finding the reputed retailers and stores to well place the
            brand in some parts of the country


            Reasonable percentage of youth in Pakistan

            People are becoming more brand conscious

            Because of rising education rate, people are becoming more innovators

            People are willing to pay more for their psychological satisfaction

            Pace of change and change acceptance is satisfactory and reasonable


            Aggressive marketing of competitors

            Vast experience of the competitors

            Most of the competitor companies are multinational and are very
            resourceful, and may give very tough time while competing

Corporate Portfolio Analysis/ BCG Matrix
Micro factors


Y_Gene has identified its customers as young working men, professionals, teenagers,
upper class and middle class school. College and university students and passionate and
fashion conscious people of upper and middle class.

Students are recognized as iron customers, whereas working men, professionals and on
job males are recognized as gold and platinum customers.


Y_Gene has identified its competitors as Levis, Hang ten and ChenOne, Levi Straus, and
Y_Gene is in direct competition with its competitors.

In its competition, Y_Gene is follower and is giving a “favorable” competition to its

As a follower firm has adopted “Adopter strategy” and has benchmarked its leader to
give a better product.


Company is not having its own stitching unit and is getting finally finished and packed
product from its suppliers. Firm‟s fashion designers work in collaboration with theses
suppliers to take work according to their specifications which are strictly observed in
every step of manufacturing the jeans.


Initially firm came up with 0-level channel and product was sold only at company outlets.
But in the recent years, to enhance the sales, company has adopted multi channel
distribution and is placing its product on the renowned stores through out country like
HKB in Lahore, ARY in Karachi etc.

Market Information System

Data sources

Wile doing the research data was collected by using both, primary and secondary sources.
In secondary sources we analyzed the data already present on internet and through other
sources like competitors sales analysis etc. For gathering the primary data, a survey
questionnaire was surveyed and personal interviews were also conducted. Moreover
different colleges and universities were visited by our teams of fashion designer to assess
to taste of the youth. It was also an activity of creating hype about the product before its

Research approach

Approach adopted for the research included questionnaire that included different open –
ended and closed-ended questions to assess the taste, demand and expectations of the
people from a new brand. Theses questions were designed in a way so that data donor can
express its views in open-ended part and then in closed-ended part of the questionnaire,
peoples response under certain possibilities were assessed. Personal interviews of people
were also conducted. Armature fashion shows were organized and sponsored in different
fashion schools and colleges, which not only provided the opportunity of assessing
people‟s expectations but also became a source of awareness of brand among people,
before its launch.

Contact methods

Data donors were contacted in both physical and indirect ways. Questionnaires were
given by hand and interviews were conducted physically. In fashion shows behavior of
people towards different type of styles and colors were also observed.


Market was segmented while considering following characteristics

               Age was major segmenting factor in the process

               Different segments were formed on the basis of their income level and
               monthly pay etc.

               Education was also a major deciding factor of different segments.

               Social classes were segmented

               People with different “life styles” were placed in different segments

               A very important characteristic of the segmentation was different
               attitude of people towards the product.

On the basis of above segmentation, attractiveness of different segments was considered.
Profitability analysis of different segments and compatibility of different segments with
our product‟s features, following segments were targeted.

               Variety seeking and passionate youth, teenagers and upper & middle
               income students of colleges, universities and schools were focused

               Self expressive and innovator young working males and professionals
               are regarded as potential customers of our product.

               Fashion conscious males of the upper and middle class

Strategy of target marketing

Product specialization is the strategy adopted by the firm. Only one brand of jeans was
launched in all the markets of the country and all outlets were selling the same brand.

                                 Product Specialization

Patron of Targeting



Positioning statement

“Mutating Jeans Mania”

Positioning attributes




Positing attributes are deliberately chosen as abstract as they are not having any limit and
provide a better room for the positioning


Product differentiation

Product is differentiated as high fashioned and self expressive. Firm‟s image, logo and
symbol are also a differentiation feature of the product. Product has a very masculine
oriented name which rightly and precisely describes its exclusiveness for high fashioned
and style seeking males.

Channel differentiation

Company is having its own outlets as well as product is placed at renowned stores of the
country. HKB in Lahore, ARY in Karachi etc are its retailers and are having very good
market place which is further helping the brand to gain more worth.

Personnel differentiation

Added advantage of buying the jeans from its outlets is that fashion designers are
deployed on the outlets that provide advice to the customers to buy jeans that best suit
their physique.

Service differentiation

Services provided by the fashion designers are added benefit of buying product from the
outlets of the firm.

Image differentiation

Brand‟s innovative name, logo and symbol is its differentiation features.



Level of products
Core Benefits       Clothes

Basic Product       Men‟s Wear

Expected Product    Variety, Stylish, Comfort

Augmented Product   Sophistication, Personality

Potential Product   More Designs & Color Scheme

Product hierarchy

Need Family         Clothing

Product Family      Men‟s Wear

Product Class       Pants, Shirts, Jackets

Product Line        Trousers

Product Type        Jeans

Product             Y-Gene
Product attributes

Concrete attributes

Jeans itself is the concrete product and is having tangible benefits.

Abstract attributes

Abstract attributes are those attributes that are not measurable. Abstract attributes are the
major focus of the marketers today as it has opened up a horizon for focusing on wants
rather than on the needs. Y_Gene is focusing on the following abstract attributes in its
advertisement campaigns as well.





Product class

Tools of brand building used by Y-Gene

               • Professional Fashion Shows are arranged and sponsored by the Y-Gene
               in which different top models of the country are paid to participate. Such
               shows promote sales and build the brand as well.

               • Amateur Fashion Shows at renowned schools and colleges/universities
               are organized to inculcate the brand loyalty among youth and gives a
               feeling that brand is always there to make them aware of the new trends.

               • Achieving Brand Loyalty by persistent and consistent offers

               • Different models and celebrities are contracted as brand ambassadors of
               the product

               • Fashion Designers helping customers at outlets

Y-Genes initially came up in the market with a promotional price strategy which was
introductory and for a short period of time. It helped the brand to grab the attention of its
potential customers.

Presently Y-Gene is following brand pricing. Even though, psychological discounts are
given on at special events e.g. Eids, charismas and new-year etc.


Initially company had placed its product on its own outlets only. Lahore, Islamabad and
Karachi were selected for opening outlets having in consideration the percentage of
potential customers, developed infrastructure and easy availability. But then in the
coming years, to push the sales further company decided to palce its product on the
renowned store and shopping centers of the country. This strategy helped company a
great deal because in many cities company found developed and well reputed stores to
place its product. Several incentives were given to theses well reputed retailers to better
place the product.

So initially company was following zero level channel but then it switch on to selective
distribution. The objective behind this strategy was to push the sales and to achieve a
higher volume of sales to get more profit. Different retailers and stores are evaluated on
the basis of their performance in the sales time to time and it further helps the company to
take decisions in the future about the selection of retailers or about the incentives and
measures to be taken to improve the sales further.

Promotional Mix

Company is following four tools of promotional mix


               Sales promotion and publicity

               Public relationing

               Direct marketing

All theses promotional tools are briefly discussed in the following lines.

Initially informative ads were designed to create hype about the product. Then persuasive
ads were used after the launch of the product and youth was persuaded by focusing on the
exclusiveness of the brand as men‟s wear.

How five M’s were used

Mission of the ads were decided to be informative, before the launch of the product, and
then persuasive after its launch

Objective Company was not having very huge finances for advertising so the method
adopted by the company was objective task method.

Message was decided by the company to be innovative and when before launching the
product commercially, teams of fashion designers used to go to different colleges and
universities, the format of the messages as shown and evaluated by the response of the
people and then response was assessed.

In execution of the message, company used a specific life style in its ads to create an
appeal for the youth.

Following media vehicles were used invariably by looking at company‟s objectives,
reach of theses media vehicles, frequency, impact.


                              TV & cable


                              Weakly family magazines/fashion magazines

All are discussed in following lines


Before launching the product media hype was created among the people by placing
billboards in busy and posh areas of concentrated potential customers. On these boards
people were informed about the innovative name of the product and most of the attributes
advertised were abstract. Theses billboards were having messages like;

“Y-Gene, mutating jeans mania”
“Y_Gene, decides men”

“Y-Gene, a difference in you and men”

“Fashion, Quality, Style, Variety………… you can get all in one?”

TV and cable

As the main focus was youth and working man of a specific life style , then ads were on-
aired on the times and channels, where opportunity to approach the target audience was

TV channels like PALY, MUZIK, MTV, AAG, ARY, GEO were selected and were used
to advertised at the times when our target audience was expected to attend the message.
Youth are more interested in the music channels, so they were approached through theses
channel. For our target market of working youth males, we approached them in some
business programs and on the times when there were opportunity to portray our message
to them.


Banners informing the customers about the new offerings were placed at the places where
target audience was more likely to attend it.

Weekly and fashion magazines

Fashion magazines and weekly magazines were used as media vehicles of printed form,
as our target market is more likely to expose over these magazines.

Sales promotion and publicity

               Fashion shows are conducted by the brand in which models are hired
               and then after show POP is arranged their on the place.

               Tie_in_Promotion is done with TOBACCO MASTER

Public relationing
Workshops are organized by the Y-Gene in the fashion schools and colleges to introduce
innovative trends and fashions among the youth.

Amateur fashion shows are sponsored in the schools, colleges and universities. Moreover
free passes of the professional fashion shows are given to our gold and platinum
customers. Similarly in promoting the sales, on every purchase from the outlet, customers
are given coupons to get enter in the draw to get free tickets of the fashion shows.

Direct marketing

Our website is having enormous information about our offerings and is providing
knowledge about the trends and fashions. Our sales force at the company outlets keeps
the particulars of our gold and platinum customers and then by calling and e-mailing,
theses customers are informed about the new offerings by the outlet.

Problems faced the brand

Since the launching of the brand, it has faced several problems. Some of those problems
are stated below.

              Limited resources of the company caused it to face serious challenges
              from its resourceful and vast experienced competitors. It was an uphill
              task to survive and establish in the market in the presence of strong

              Company faced the problem of delays in the orders by the suppliers of
              stitching units. Even though theses problems never hampered the sales, as
              they were more near to reorder point rather than shortage. To sort out this
              problem, company has now decided to establish its own stitching unit.

              Initially product was available only from the firm‟s outlet, and thus
              company was not able to sale the product in the entire country , as opening
              an outlet in every city was financially not feasible for he company. Then it
              placed it product on well reputed stores to cope this problem. Company
              found well reputed stores in most of the places which further enhanced its
              brand value.


On the basis of the entire report we can summarize following lines.
               The firm that started its business in 2004 is now in profit and is further
               exceeding its business by globalizing the brand.

               Initially firm recognized it as a follower and it is giving favorable
               competition to the industry. As a follower it has adopted the „adopter

               The target market of the company was recognized as upper and middle
               income class fashion seeking, self expressive, quality and style conscious
               youth and young professionals and working men.

               Firm is not having its own stitching unit and is getting its finished
               product from different units. Company‟s fashion designers are working
               with those units and are supervising them by giving instructions and
               specifications about the material and stitching. Initially this strategy was
               adopted to better allocate the limited finances. In future company is
               looking to establish its own stitching unit.

               Company launched its product after having a research to assess the
               expectations of the market. In this process, questionnaire surveys, face-to
               face interviews and market situation of the competitors was analyzed.

               Promotional price was used in the initially. Now company is using brand
               pricing and psychological discounts are also given on the important

               Initially product was available only on the company outlet but then to
               push the sales, product was placed on the renowned stores of the country.

               In promotional mix, advertising, sales promotion, public relationing and
               direct marketing were selected. Media vehicles used to attend the target
               market were TV, fashion magazines, billboards and banners.

Future plans

Brand has completed almost three years of its creation and is now planning to increase its
business. Future plans of the business are summarized below.

               Firm has decided to extend its business in the other areas of the country
               and internationally as well. So in future firm is looking to extend its
               outlets throughout the country. More numbers of outlets will be an added
               benefit for the repute of the brand. Rawalpindi, Faisalabad, Peshawar,
               Hyderabad and Quetta are under consideration for launching new outlets.
               Feasibility analysis has favored theses places.
             Brand has decided to globalize itself. According to future plan in near
             future brand is planning to establish its outlets in Dubai. Homework on
             infrastructure and to find places is in progress.

             To extend its business, firm will need more efficient supply of the
             finished products. So firm has decided to establish its own stitching unit. It
             will be a step towards cost effectiveness and will help to make firm‟s
             operations more efficient. Now company‟s fashion designers have got
             enough experience to look after the operations itself and it will become
             more convenient for the company to experiment with different fibers and
             styles. Company has foreseen this development as a challenge, as it will
             need more employees to find the suppliers and stitching of the jeans.

             To further improve the image of the brand, company has decided to
             contract with the top male model of Pakistan for 2 years and this model
             will be performing in the coming ads of the brand. In this way company
             will be able to better appeal its target market and brand will be better
             represented by this model.

             Limited resources of the company caused it to face serious challenges
             from its resourceful and vast experienced competitors.


Following conclusions are drawn

             Organization is a profitable sort of organization and is profit oriented in
             its nature.

             Firm is having its outlets in Lahore, Karachi and Islamabad but product
             is available in the renowned stores in the other parts of the country as well.

             Brand is follower in competition and is giving favorable competition.
             Brand has adopted adapter strategy

             Brand has targeted the upper and middle income class fashion seeking
             and self expressive youth and professionals.

             Zero level channel of distribution was adopted first but now multi
             channel distribution is done.

             Promotional prices were used at promotion. Now brand pricing is
             followed with psychological pricing on the occasions.
               Promotional mix is a combination of advertising, sales promotion, direct
               marketing and public relationing. Different media vehicles are used having
               in consideration of their impact and exposure to the target market of the

               Brand was not having its own stitching unit, but now planning to
               establish its own unit. As an effort to globalize the business brand is also
               working on to open outlets in Dubai

               Product is on its maturity stage.

Suggestion & Recommendations

In the light of all above findings and conclusions, following suggestions and
recommendations are valid

               Firm should have its own stitching unit to reach to cost effectiveness
               and to keep a keen check on the quality of the jeans to main the repute of
               the brand.

               Firm should globalize its business in other countries as well.

               Company should contract with the well suited showbiz model having
               compatible personality with the image of the brand.

               Company should have do efforts to promote the business. Any
               exclusive brand of men, may be of some other type of product, can be
               approached in this process.

               More outlets should be opened in cities where potential customers are
               in large numbers. Taking brand to such country will improve brand‟s
               repute and image.