NBS

Submitted to: Mam Zeenat JabbarSubmitted by: Anum Safdar KhanFatima SyedQurat-ul-Ain RaufSyed Usman Wazir (GL)

“Product development Report”

Table of ContentsMarket Review:...........................................................................................................................................4

Market Trends & Opportunities..............................................................................................................4

PEST of Retail Industry.................................................................................................................................5

Political....................................................................................................................................................5

Regulations in your industry....................................................................................................................7

National Business Environment...................................................................................................7

Environmental.........................................................................................................................................9

what the government says and what market say........................................................................9

Social.....................................................................................................................................................11

Related to your industry............................................................................................................11

A view of the services market....................................................................................................11

Lack of standardization..............................................................................................................12

Free entry and unemployment..................................................................................................12

Deficiency of trained HR............................................................................................................12

Socio Cultural:........................................................................................................................................13

Westernization..........................................................................................................................13

Brand Consciousness.................................................................................................................13

Technological:........................................................................................................................................13

Research and development...................................................................................................................14

Customer needs, AIOD & migration trends...............................................................................................15

AIOD:.....................................................................................................................................................15

Psychographic Market:......................................................................................................................15

PORTER’S MODEL..................................................................................................................................18

THREATS OF NEW ENTRANTS....................................................................................................18

THREATS OF SUBSTITUES...........................................................................................................18

RIVALRY AMONG EXISTING FIRM...............................................................................................19

BARGAINING POWER OF SUPPLIERS..........................................................................................19

BARGAINING POWER OF BUYERS..............................................................................................19

Competitive landscape, SWOT:.................................................................................................................20

COMPETITOR ANALYSIS:........................................................................................................................20

BAREEZE:...............................................................................................................................................21

IDEAS.....................................................................................................................................................25

STRENGTHS:...............................................................................................................................25

WEAKNESS:................................................................................................................................25

OPPORTUNITIES:........................................................................................................................26

THREATS:...................................................................................................................................26

SWOT EXPLANATION:............................................................................................................................26

STRENGTHS:...............................................................................................................................26

WEAKNESS:................................................................................................................................27

OPPORTUNITIES:........................................................................................................................28

THREATS:...................................................................................................................................29

BRAND PERCEPTION INDEX:......................................................................................................................31

VISUAL:..................................................................................................................................................31

Verbal:...................................................................................................................................................33

Tagline:..............................................................................................................................................34

Advertisement:..................................................................................................................................34

Word of mouth:.................................................................................................................................34

EXPERIANTIAL:.......................................................................................................................................36

Store outlook:....................................................................................................................................36

Customer care:..................................................................................................................................36

Quality/ Durability:............................................................................................................................36

Financial Review........................................................................................................................................38

Company performance—Gul Ahmed.............................................................................................38

Sales Channel performance-IDEAS........................................................................................................39

Waiting time......................................................................................................................................39

Location.............................................................................................................................................39

Product variety..................................................................................................................................40

HOME IMPROVEMT:..............................................................................................................................40

Kitchen:..............................................................................................................................................41

Bath:..................................................................................................................................................41

Home furniture:.................................................................................................................................42

GIFT IDEAS:........................................................................................................................................43

Personal Wear.......................................................................................................................................44

Menswear:.........................................................................................................................................44

Women's wear:.............................................................................................................................45

Product performance (IDEAS)................................................................................................................46

Forecasting for next 3 quarters:........................................................................................................46

Analysis of Projections:..........................................................................................................................47

Corporate Strategy....................................................................................................................................49

Vision.....................................................................................................................................................49

Financial Outlook:......................................................................................................................................50

Growth..................................................................................................................................................51

Growth rate:......................................................................................................................................51

Product Strategy........................................................................................................................................53

Target Market & customers...................................................................................................................53

PLACEMENT.......................................................................................................................................53

PROMOTION..........................................................................................................................................53

PLC & BCG..................................................................................................................................................56

BCG:.......................................................................................................................................................56

Product Theme and Pricing.......................................................................................................................57

Brand Elements analysis:...............................................................................................................57

The colors:.............................................................................................................................................57

The Text:................................................................................................................................................57

The symbol:...........................................................................................................................................58

PRICE.....................................................................................................................................................58

Product Roadmap......................................................................................................................................60

Quarterly Deliverables...........................................................................................................................61

Products and Features...........................................................................................................................61

References.................................................................................................................................................62

Market Review:

Market Trends & OpportunitiesThe industry that we have chosen is basically retail industry of Pakistan. In

the recent year we have experienced a noticeable growth in this sector.

From little shops to departmental stores the trend has changed to malls,

mega malls, arcades and so on. Almost all the world class brands have

realized the market potential in Pakistan and opened up their retail outlets

here. This segment alone, projected to grow by 17 million people by the year

end 2010.1

Not only that, numerous local brands have sprung up and they are doing

exceptionally well. The unprecedented growth of this industry is owed to the

awareness that has been spread by the globalization. People have become

more fashion savvy and brand conscious.

The growth is so tremendous that people have started to consider it as a

status symbol. There are certain stores that are considered to be prestigious

and expensive and people take a lot of pride in making it public that they

1 http://ajc.sagepub.com/cgi/content/abstract/2/2/137

“It will surprise many that the transition in lifestyles is a driver for the most profound changes in the industry. Till the end of the 1960s, over 70% of men’s shirts sold in the United States were white dress shirts. By 1986, this share was down sharply to 20%. The youth rebellion made the world a much more casual place. The implication for the industry could be understood by thinking of the difference between the economics of selling dry fruit and the economics of selling fresh fruit.”

Dr Anjum Altaf- Sustainable Development Policy Institute

shop from a specific store, which is a part of an international or a local brand.

Albeit, we are suffering an economic crunch, but this industry is still

blooming and more international chain have opened up their stores. A recent

example is of metro store. This is maybe because the disposable income of

the people of Pakistan lets them afford such a life style, as we have a wide

middle and upper middle class and the status awareness is increasing by the

day.

Now taking into consideration the latest trends of one shop stop home

concept, where buyers can purchase all the household items from clothes to

toiletries, decorations, apparels, furniture, beddings etc at a single store. In

the past few years some major brands have launched stores of this sort

locally and have also expanded it internationally. These include Chen One of

Chenab Group, Bareeze of Sefam Pvt. Ltd and Ideas owned by Gul Ahmed.

For the purpose of this project the brand under consideration is Ideas. The

project provides a detailed review and analysis of the chosen company along

with the competitors

PEST of Retail Industry

PoliticalThe global economic slowdown of 2007-082 initially triggered by the sub-

prime mortgage crises in the U.S, as a result was which the U.S. Dollar

suffered huge depreciation against major currencies; coupled with the

2 http://www.sdpi.org/help/research_and_news_bulletin/jan_feb_06/textiles_and_clothing.htm

phenomenal hike in oil and food prices, sent shock waves around the world,

throwing up enormous challenges for most economic managers. Pakistan

was no exception.3 Heavy reliance on imported fuel and food commodities

like wheat and sugar placed huge pressure on our balance of payment

reserves as our import bill soared.

As far as the garment production4 in Pakistan is concerned, the highest

value-added product among the textile group, but the price we are getting

for our products is less compared to other countries. According to one

estimate 70 percent of these units are in the unorganized sector, producing

cotton-made articles. These units do not have modern machinery and use

the non-mill made cotton cloth. This may be one of the reasons that the price

we fetch for our apparel exports is low compared to other countries.

As apparels/garments provides the highest value added product among the

textile items. Maximum focus should be towards the units producing

garments. Our producers in this particular industry should try to adopt (just

like in the West) the “Demand for Market Oriented Strategy” i.e., to increase

their market power by producing high price fashion clothing. They should go

for product differentiation through the promotion of brand names and

advertising. And they should also try to increase the efficiency of

distribution. With an increase in market power they can easily transfer rising

cost to consumer in the form of rising prices.

3 http://www.epb.gov.pk/docs/others/trade_policy_initiative_2008-09.pdf

4 http://www.pide.org.pk/Research/Report180.pdf

Regulations in your industry

National Business EnvironmentPakistan’s national business environment is characterized by abundance of

semi-skilled and low wage labor, moderate natural resources, poor

infrastructure, high rates of corruption, poor governance, moderate level of

university-industry collaboration and low scientific research on the factor

side. The context of firm strategy & rivalry can be described as highly

regulated, bureaucratic business environment, high tariffs, no substantial

presence of foreign companies and static corporate culture.

The textile industry has been the driving force behind the manufacturing

sector growth of Pakistan. This sector accounts for nearly 60% of total

exports for Pakistan, 46% of total manufacturing produce and employs 38%

of the total manufacturing labor force. Textile trade is classified into two

broad categories i.e textile which include yarn, fabric and madeups and

clothing which represents ready-made garments.

The largest growing sector within the global textiles trade has been the

apparel sector – trade in this sector in 1999 accounted for 53% of the total

value of global textile trade. Over the last decade, the apparel trade5 has

surpassed the trade in textile products such as yarns and fabrics. In the year

2000 total trade in textiles was $157 billion and trade in clothing was $199

billion. There was a switch in trade patterns after 1985 when clothing

became more significant as compared to textiles. This sector lies at the

5 http://www.smeda.org/business-development/sector-briefs.html

pinnacle of the textile value chain, which begins with cotton and synthetic

fibers. South Asian countries have established themselves as the most

important players in the textile sector.

source: isc.hbs6

6 http://www.isc.hbs.edu/pdf/Student_Projects/Pakistan_TextileCluster_2007.pdf

Environmental

what the government says and what market sayPakistan is one of the emerging economies of the world. It has shown great

economic growth due to dynamism in its industrial, agriculture and services

sectors. The services sector alone has continued to perform strongly and has

averaged growth of over 8% per annum since 2000.

Services sector contribution to real GDP growth

Pakistan’s economic growth7 is broad-based and is shared by all the major

sectors of the economy. However, a major contribution towards growth has

come from the services sector, which has emerged as a growth powerhouse

over the past few years. The commodity producing sectors (agriculture and

industry) have contributed two-fifths while the services sector contributed

7 http://www.smeda.org/downloads/AppendixI-TradeinServices.pdf

the remaining three-fifths of the 2006-07 real GDP growth of 7.0%.

Agriculture and industry contributed 30.2%, or 2.9% percentage points, while

the remaining 59.8%, or 4.2 percentage points, came from the services

sector. Within the commodity producing sectors, agriculture contributed 1.1

percentage points or 15.1% to overall growth, while industry contributed 1.8

percentage points or 22.7%. The services sector has contributed the bulk of

GDP growth for some time.

source referenced from smeda

8 http://www.smeda.org/downloads/AppendixI-TradeinServices.pdf

Social

Related to your industryPakistan’s reliance on agriculture is minimizing with the passage of time. It is

encouraging to note that the contribution of wholesale and retail trade is

increasing. It contributed 19.4% or 1.4 percentage points to GDP in 2006-07.

This sector is highly labor-intensive and this higher growth may have

contributed to the rise in employment and income levels of people attached

to the sector.

A view of the services market“While dealing with a service giver, I am constantly gripped by a fear of

being cheated. I have to play extra vigilant; as the fear is not just about the

conscious wrong doing on the part of a service giver but also about his skill

and ability to deliver the right quality stuff”.

These issues are reflected below:

Lack of standardizationServices are not standardized. Legislation protecting consumers is still at a

very early stage and there are no strong traditions to support customers

seeking recompense or damages from a services deliverer. International

quality certifications are systems-based requiring a lot of documentation,

besides being expensive. There is a need for a simple but effective

mechanism, at the level of the sectoral or professional associations, to certify

the quality of services and thereby ensure adherence to a consistent set of

quality standards.

Free entry and unemployment

With rising unemployment, services businesses requiring a minimum level of

skill, a small capital outlay and virtually no registration are an easy option for

investment to earn a living. With scores of people entering the lower end of

the market, competition is high and the range of pricing limited. Therefore,

livelihoods are squeezed from the thin margin left after meeting all costs and

overheads. Expecting such a market to be quality conscious is an illusion.

Deficiency of trained HR

Apart from a few organized sub sectors, like banking, medicine and

engineering, there are no credible training institutions offering courses

in the skills required for the services sector. Resultantly, most of the artisans

in trades like electricians, mechanics, drivers, tailors, barbers, cooks,

masons, etc, are trained on the job. The level and quality of skill acquired by

them is inconsistent and uneven depending on the source and environment

of learning.

Socio Cultural:The product made by Gul Ahmed is in sync with the socio cultural aspects of

the region. The dresses usually worn by the women and men here are of that

material. Gul Ahmed however is not catering to the changing social trends

for example the move towards more westernized clothing like Bareeze is

doing with ‘Leisure club’. This change in the social and cultural trends can

affect Gul Ahmed and it will have to keep re inventing itself to keep up with

the times. Plus there is a change towards more acceptability of working

women in the society. The firm will have to keep in mind that too because

not ladies have time to get the clothes elaborately stitched now.

WesternizationDue to media proliferation and exposure to the western culture the

younger generations in Pakistan is becoming more and more westernized.

This change in the society has worked in favor of fashion store like Chen One

and Bareeze that sell trendy western and eastern outfits for both men and

women but for Ideas by Gul Ahmed, this is a territory yet to enter.

Brand Consciousness    People are becoming more and more brand conscious. Reliance on foreign

brands is increasing. Therefore the Pakistani brands by portraying a hip and

a trendy image like the west can capture the interest of people.

Technological:On the national level, Gul Ahmed is enjoying technological edge over all the

others players in the industry. The technology that is in use in the industry

has a lot of room to be improved. It is necessary that the industry undertakes

an up gradation in the technology being used. Also, there is lack of efficient

R&D and training.

The textile machinery used in Pakistan is imported mainly from countries like

Japan, Switzerland, Germany, China and Belgium.

Gul Ahmed unlike the other mills and factories of Pakistan is equipped with

far better technology which helps them to be far more efficient and maintain

good quality. But, on the Global scenario the costs of inputs in Pakistan are

more than any of the competing countries like India and china. Gul Ahmed

has to be more efficient in production and if possible, install more technology

in order to meet its aim of becoming international brand.

Whereas in IDEAS; they have incorporated Management Information system

with incorporation of oracle based inventory management system. This helps

them retain, analyze and forecast the inventory in store and demand that is

in market for a particular product.

Research and development       To facilitate the textile industry, government has granted 6 percent

Research and Development support to garment exports (both knits and

woven). Research and Development support to export of dyed/printed and

White, Home Textile at 3 percent and dyed/printed textile at 5 percent of the

FOB. The scheme has been discontinued from June 30, 2008. As per the

estimates provided by the State Bank of Pakistan, the government has doled

out Rs 40 billion to textile exporters of the country

Customer needs, AIOD & migration trends

AIOD:

Psychographic Market:The main psychographic market for Ideas is young/ adult males and females.

Although there is a lot of variety for kids as well but they are not the direct target

market for kids, as they rarely make it a point to choose where they would like to

shop for their clothes only. The main competitor is Chen one in every target market.

The main activities, interest, opinion and demographics of which are explained as

below:

Benefits Activities Interest Opinion Demographics

One shop stop

for buying

households

Housewives,

and

working women

who take care

of the whole

household,

Home décor,

Shopping for

family and

home,

Status

conscious,

the home and

family reflect

the women of

Urbanite,

aged 26

onwards,

Upper middle

men who take

interest in

home making

watching

television,

social lifestyle,

reading

fashion/home

magazines

the house,

social

acceptance is

important

class, having a

good income

half/full/empty

nest, (because

they can be

recently

married, or

started a late

family, or kids

are already

married or

reached the

adult)

male/female

Latest clothes

and a

shopping

experience at

a good store

Students,

(high school,

college,

university)

working

(part/full

time)

Following the

latest trends,

Shopping for

themselves,

Sports,

Fashion,

Music,

Status

conscious,

Good looks

and clothes

are essential

for being

popular and

for social

acceptance,

Urbanite,

aged 16-26,

single or

Engaged but

not yet

married like a

separate

family

Latest

happenings,

Liberal view

of living and

dressing up

etc

upper middle

class

male/female

The consumer trend and migration for Ideas is basically for the metropolitan cities

of Lahore, Karachi and Islamabad. The reason is not only that a lot of educated and

upper middle class belongs to these cities but also the fact that people go to these

cities for specifically for shopping as they are famous for the variety they offer.

The consumers flock to these cities mainly during the summer vacations and also

the winter holidays. The trend for consumers migrating to these cities has been

noticed to be what is called the “wedding season”. So, Ideas can cash on the

opportunity of increasing their stock and variety during these peak seasons and

times of the year.

PORTER’S MODEL

According to the porters approach retail industry analysis is as follows

THREATS OF NEW ENTRANTSThe threat of new entrants in the retail industry keeping in view the brands that we

have chosen is low. As the scope of the business of ChenOne, Bareeze and Ideas is

providing a vast category of products under one roof. The new entrants face several

barriers which primarily includes the high costs involved in starting this business.

Secondly the product offered by them is highly differentiated product which also

discourages new entrants. With such established brands it becomes very difficult for

the new entrants to make a position in the market or capture market share. Thirdly

the cost involved in having an exclusive distribution is very high which also serves

as a barrier to entry.

THREATS OF SUBSTITUESIn case of the retail industry that we are analyzing the threat of substitute can be

classified into the following category of people

Brand conscious

Not brand conscious

If the people are brand conscious then the threat of substitute is medium to low.

People might switch brands if they think due to any reason the brand is not

providing satisfaction. But on the other hand people who are brand loyal would not

think of any substitute.

For the people to whom brands don’t matter the treat of substitutes is pretty high.

These people rather than buying from an expensive branded store would rather

prefer buying from local stores which would satisfy their need as a less expensive

substitute.

RIVALRY AMONG EXISTING FIRMThe rivalry among the firms of the retail industry is high both in the local market

and also the branded market. In case of the local market the number of competitors

is very large and all moves are competitive. Majority of them are even located in

same areas challenging each others positions, taking sales from each other. Due to

a lot of fragmentation the suppliers are also exploitative. The branded market is

also on the competitive moves. Launch of new product by any brand impacts the

other brands like the recent launch of Ideas impacted the sales of ChenOne and

Bareeze.

BARGAINING POWER OF SUPPLIERSThe bargaining power of suppliers is high in retail industry as the suppliers can

supply to any firm they want. Ideas, bareeze, ChenOne have their own suppliers and

therefore have great impact on the running of their business. The products at these

stores are differentiated and therefore the switching costs involved are very high.

Alongside the substitutes in case of suppliers is also not viable as brand equity is

also very important.

BARGAINING POWER OF BUYERSThe bargaining power of buyers is high in the retail industry when local stores are

considered but in case of branded stores it is low. The reason for the high

bargaining power in local market is

Plentiful alternate suppliers

Product not differentiated

Access to substitutable products

Plentiful options for consumers

On the other hand in case of the branded stores the bargaining power of buyers is

low because

Less alternatives

Differentiated product

Changing supplier costs high to the seller

Brands justify high pricing

Competitive landscape, SWOT:

COMPETITOR ANALYSIS: Chen One is one of the 3 projects launched by Chenab Group.

Chenab Group started its retail chain of fashion stores under the brand name

of Chen One, with the concept of a family mega store dealing in home

textile, fashion garments, furniture and other accessories. Starting from

Islamabad, the capital of Pakistan, their outlets spread to other cities.

Chen One is a subsidiary of Chenab Group of industries. It has been in

operation since its inception in 1997. The name Chen One is an integration of

two words; Chen comes from Chenab, its parent company, and one comes

from its number one undisputed position.

Chen One has eight outlets in Pakistan and after their success at the

Motexha spring exhibition in the Middle East they set up five stores in the

region. All Chen One stores are located in exclusive places in Karachi,

Lahore, Islamabad, Rawalpindi, Peshawar, Faisalabad and Rahim Yar Khan

and its outlets can now be found in the best locations of Dubai, Ajman, Abu

Dhabi, Makkah, Sharjah and Bahrain.

The catch phrase used by Chen One for marketing purposes i.e. changing

lifestyles fits very well with the innovative approach of its managers. Today

Chen One is holds a unique position in the market in the sense that we don’t

get to see too many stores offering a variety of products under one roof and

that too with a strong brand name and image.

Chen One is the leaders in home linen, garments and furnishing fabric

market. Looking at the increasing market demand and the good quality that

Chenab was producing they decided to start their own brand, this was the

only source of getting themselves recognize in Pakistan. Else for recognition

they also wanted to establish a brand that could carter to the needs and

demand of the local consumers, customers who seek good quality.

BAREEZE:Bareeze is a sister concern of Sarena industries and owend by Sefam Pvt ltd.

The firm is in business since late 1980,s. product range includes; crisp

cottons, luxurious silks, sheer organza, chic chiffons, textile embroidery.

Bareeze brand and stores:

Leisure club: Every garment at Leisure Club contributes to the mainstream

fashion scene. Our styles identify with the contemporary tastes, colors

offering a wide range of stylized outfit.

Minnie Minors: A colorful range of fashionable classics for newborns through

to pre-school. We manufacture high quality garments designed with the

choicest of fabrics with an innovative range of soft toys, furniture, jewelry

and accessories for babies.

Chinyere: Bareeze‘created an exclusive casual, semi-formal and formal

wardrobe. Our garments are designed in step with global fashions and in

keeping with tradition. This caters to the women as well as men.

Home expressions: Elegant soft furnishing, bed sets and home linen are

fashioned from the versatile Bareeze‘fabrics at par with local and global

trends.9

Compa

ny

Strengths Weaknesses Opportunities Threats

9 http://www.bareeze.com/demo/CompanyProfile.php

Ideas Brand name, sub

brand of “Gul

Ahmed”.

High emphasis on

personalization.

Established target

market.

Strong Word of

mouth.

Too much under the

influence of parent

brand, Needs to

create a tagline for

quicker association,

High prices but not

outlet exclusive

apperal.

A new niche

segment by making

Ideas exclusive

designs and charge

more, Increase ATL

promotions.

Competition offering

a more diverse

product range.

Competition ranks

higher on being

exclusive,

(Chenone, Bareeze

products only on

outlet)

Chenon

e

Brand name

Company’s

Goodwill

Product Quality

Product Variety in

household and

personal wear

Strong

Management

Low Employee

Turnout

Technological

Edge being the

Chenab group

Elegant and

Creative Designs

in the readymade

wear

Criticized for high

Prices,

Outdoor

Advertisement

sometimes use

amorous appeals,

Static target market

Increase target

market by having

yearly exclusive

discounts.

Competition,

Related unrelated

diversification

Improving HR

policies

International

expansion

Bareez

e

Strong brand

name

Strong market

Poor customer

service,

No Tvcs yet

To diversify its

portfolio being a

very strong brand

Direct indirect

competitors (aroshi,

wrinkle, batools,

presence

Preference of

consumers

Readymade

collection in great

variety

Variety in the

material used that

include silk,

chiffon, organza

and velvet.

Building brands of

its own like

chinyere, leisure

club, Minnie

minors.

International

presence.

Competitive

quality of product

in terms of stuff,

embroidery and

durability

High prices,

Catering to

different market

segments.

and capitalizing on

the market share

and the mind share

that it has achieved

Related

diversification :

introduction of

bareeze sweaters

To be the first

mover in coming up

with a TVC

chen one, ideas, out

fitters, crossroads,

imperial store,

furniture shops)

Brand equity and

maintenance of its

image

Political instability in

the country

Inflation causing

increase in cost of

production

Accessibility due

to its retail outlets

everywhere

IDEAS

STRENGTHS: strong brand name that it carries as its parent brand

People across the country trust the brand Gul Ahmed for it quality, novelty

and eminence. Especially in the clothing line their quality is considered to

be superior to their competitors.

Positive Impact of its personal wear on home products and gifts

Offering personalization on some of their products i.e. order taking

not many competitors on the basis of one shop stop

capitalizing on the increasing awareness of diversion between income and

economic classes and recognizing shopping from good branded stores and

malls has become a status symbol

WEAKNESS: there is not complete exclusive distribution for Ideas

Marketing not rigorously

OPPORTUNITIES: One of the major opportunities that await Ideas is the fact that they can

expand their business greatly. This expansion can be both: Locally and

Internationally

Local expansion in the unexplored cities of Pakistan

Internationally there is a huge potential for them to setup their stores

Another diversification that holds a lot of opportunity is to invest and

venture into cosmetics market

THREATS: Political Instability

Rising production costs

Competitors

SWOT EXPLANATION:

STRENGTHS:The major strength Ideas has currently is the strong brand name that it

carries as its parent brand. It banks heavily on the brand name “Gul Ahmed”.

People across the country trust the brand Gul Ahmed for it quality, novelty

and eminence. Especially in the clothing line their quality is considered to be

superior to their competitors.

Consequently the loyal customers of Gul Ahmed would want to buy or try

other product range that is being offered by Gul Ahmed. Apart from the

regular customers of Gul Ahmed clothing a lot of people who would want to

buy other households might want to try ideas because of the mere fact that

it belongs to Gul Ahmed.

The fact that they are offering personalization on some of their products

makes them different from their competitors. For instance they are offering

to embroider on the bed sheets etc according to the individual customers.

This is giving them an edge over their competitors.

Another Strength is that they don’t have many competitors, so if they market

tactfully they can make a mark within no time. The concept of having a one

shop stop is relatively increasing as people find it convenient to buy all the

household stuff from a single store. Although it is becoming a popular

concept but they don’t have many competitors in the market as the market

is not very saturated.

One of the major strength they bank on is the increasing awareness of

diversion between income and economic classes. Shopping from good

branded stores and malls has become a trend. So, shopping from these big

stores is becoming a status symbol. Now is the right time to make the most

out of this strength which is at its peak right now.

WEAKNESS:There are a few weaknesses that Ideas has to take into consideration and

work on for the improvement of its business:

One of the major weaknesses is that they are overpriced for the variety they

are offering. Although it is competitive to their other competitors but the

overall pricing is a bit too high given the fact that the clothing prints and the

material they are selling on other shops at a lower price are being sold at a

higher price in the ideas outlet. So, taking the clothing line specifically, the

items that are being sold at Ideas are also being sold at other shops so there

is no exclusive distribution for Ideas. In comparison to this the competitors

have exclusive distribution for their stores. The products offered there are

not being sold anywhere else.

Another weakness is that they are not marketing themselves currently

rigorously as compared to Chen one and Bareeze which are their

competitors. They don’t have a television advertisement at all and they don’t

usually advertise through print media as such. Only a few bill boards are

displayed around the town, which does not really give them visibility or make

their presence felt. So they really need to work on their marketing to make

them known. As opposed to this their competitors pay special attention to

their marketing campaign and design them well.

Another weakness is their display of items. It is too cluttered and shabby.

Their outlets in different cities have different ways of displays i.e. there is no

coherence. Even the individual outlet is not well displayed as compared to

their competitors who have a very clear display and each section is

differentiated in a lucid manner.

OPPORTUNITIES:One of the major opportunities that await Ideas is the fact that they can

expand their business greatly. This expansion can be both:

Locally

Internationally

Locally there are many cities that are still unexplored but they do have a lot

of potential. Apart from that they can also participate in different business

festivals where they can put their stalls and displays. So taking part in such

activities would not only bring awareness for their brand but also make it

easier for them to enter the markets that are still untapped by them.

Internationally there is a huge potential for them to setup their stores. For

instance Chen one is doing exceptionally well in Dubai, so that shows that

there is a huge market for such stores. What needs to be considered is that

they need to open their stores in markets where there is potential and the

right kind of consumers that would be able to shop from this brand.

Another diversification that holds a lot of opportunity is to invest and venture

into cosmetics market. As they are a reliable brand and offering a home

concept shop, offering cosmetics would also be successful. Cosmetics market

is huge with little local players. People would consider their cosmetics range

reliable and of good quality because of the mere factor that their parent

company has a great name as far as quality and reliability hold. They can

give their cosmetics a different brand name but can display them on ideas

outlets. They are already making perfumes so making a complete range of

cosmetics would only help them.

THREATS:The dominant threats to Ideas currently are:

Political Instability

Rising production costs

Competitors

The major threat to any business currently is the political situation in the

country. Strikes, riots and other instabilities are increasing by the day. It

affects the businesses adversely. It not only affects the sales of the store but

may also cause damage to the outlet itself.

Secondly, the rising costs of production that includes the costs from

materials to all the overhead costs are making it difficult for the textiles

industry to sustain. Although there is no threat of sustaining the business but

it does increase the cost of production which in turn increases the price. So,

the current economic crunch is also a threat for them to develop more

efficient ways and means of manufacturing and commuting their products to

their outlets.

Last but not the least the threat is from their competitors. Chen one is

famous for their grand sales, discounts and the offerings that they have for

their prestige customers. They also have a long established their name in

this business of selling almost all the households at one shop.

But if they make the most of their strengths and take up the opportunities

that they have, it won’t take them long to match up to their competitors in

the market.

BRAND PERCEPTION INDEX:

VISUAL:There were many factors that we thought are most essential but we chose

the following three and gave them the maximum weight age. These are

listed as follows;

The logo: the logo or emblem is one of the very first things that a customer

recalls when he thinks of a particular product. Therefore it should be

considered an important visual depicting the overall theme of the company.

Since our culture is a high context culture, we love to make perceptions

about things. Therefore we thought that a logo is of significance here and

hence we gave it a weight of 35%.

Product range: this entails the entire number of offerings that are present at

these retail outlets. Note that quality is an attribute that one gets to

experience so we cannot categorize it in visual. By product range we mean

the different types of product meant for different target market. This is an

extremely important aspect of a retail outlet of this sort because it is often

synonymous with “one stop shop”. Therefore the group unanimously decided

that the most weight should be given to this and we finalized at 40%.

Innovation: by innovation we mean the novelty of design that is incorporated

in each of the offerings. This innovation should be visibly there. For e.g. how

uniquely different the products are from competition. Innovation is

something that not all people appreciate however. We as a nation are

very skeptic people; we like to go by norms, by the books. The middle

income group is evolving yet people like to live a conventional style of living.

Therefore despite being really influential, we made a deliberate effort to give

this factor the lowest weight of 25% eyeing from the perspective of an

average target audience.

Ide

as

Chen

One

Baree

ze

VISUAL scor

e

weig

ht

score weig

ht

score weig

ht

logo 4 0.35 1.4 5 0.35 1.7

5

3 0.35 1.0

5

product

range

3 0.4 1.2 4 0.4 1.6 2 0.4 0.8

innovation 5 0.25 1.2

5

4 0.25 1 3 0.25 0.7

5

Total 3.8

5

Total 4.3

5

total 2.6

Idea takes the lead in terms of innovation of its products. The designs are

absolutely unique in terms of idea as well as execution. However it lags

behind in two other important visuals. Talking about the logo, Chenone takes

the lead because its logo comes with its very catchy tagline i.e “changing

Lifestyles”. On the other hand Ideas’ logo goes a bit over the board in

claiming that it is “by Gul Ahmed”. The brand makes little effort through the

logo, to build its own identity. On the whole, it is lagging behind Chenone

while clearly surpassing Bareeze.

Verbal:Following are the drivers that we have sorted out for the verbal side of

measuring BPI:

Tagline

Advertisement

Word of Mouth

Tagline:Tagline plays a pivotal role in the brand recall. It is our opinion that many a

great brands were created or enhanced through the use of a wonderful

taglines, and that taglines are a necessary part of creating a new company's

brand image as well as sustaining it for the life of the product of service

offering itself. Hence we have given it the weight age of 20%.

Advertisement:Nowadays, advertising has an extreme importance in our society, as it is

omnipresent and one cannot help bumping into it. Besides, its techniques

are more and more sophisticated, thus appealing people more easily. People

would have a good standard of living even if they wouldn’t buy so many

things. Ads, however, make them anxious to get more and more things, to

buy more and more although they may feel they don’t need those things.

This is clearly illustrated by the fact that people always want more and

consume more than they need, which originates today’s consumer society.

Hence we are giving it a weight age of 35%

Word of mouth:Word of mouth can be an extremely powerful driver of new business. The massive

growth of the textile sector in Pakistan led by the economic uplift in the social

infrastructure meant that new range of products in this sector were promoted

exclusively by people telling each other how perfect the range is and how large the

variety is.

Whatever we do, good or bad, people will talk about your business. All our hard

work with a particular customer or group of customers can be blown away in an

instant by a bad-tempered member of staff insulting them, being cheeky, or just not

dealing with their query efficiently or treating them in the right way. And in this

particular sector where our mothers, aunts and all like to talk about the shopping

experience, product range and the sensatory gain they had by shopping from a

particular outlet makes word of mouth the most important verbal driver. Hence we

have given it a weight age of 45%.

Ide

as

Cheno

ne

Baree

ze

VERBAL scor

e

weig

ht

score weig

ht

score weig

ht

tagline 4 0.2 0.8 5 0.2 1 1 0.2 0.2

advertisin

g

3 0.35 1.0

5

5 0.35 1.7

5

4 0.35 1.4

word of

mouth

4 0.45 1.8 3 0.45 1.3

5

5 0.45 2.25

total 3.6

5

Total 4.1 total 3.85

Here again, we find ideas to be following Chenone closely but still, it is behind.

Since the parent brand is so strong, therefore the brand had maintained a good

word of mouth, however sometimes people do complain that as the products are

not exclusive, the prices shouldn’t be. Here we are particularly referring to the G

women and Men collection, which are available at retail outlets at the same price.

This problem could be overcome, if the company keeps some very exclusive prints,

with premium prices, only at the Ideas outlet and nowhere else. This would

obviously create more interest to visit the outlet, at the same a very new market

segment can be created, appropriately a niche, which includes those people who

are willing to pay some extra amount only for exclusive prints. Thus ideas would

become a brand in its own right. Currently the company is not engaged in quite a

lot of BTL (below the line) promotion with competitors definitely surpassing it.

“Ideas” has very catchy brochures though.

EXPERIANTIAL:Following drivers are being selected;

Store outlook:The store layout and the entire ambience that is there play an important role in the

consumer decision making process. If the colors and design is such that it appeals

to the senses than a positive response maybe stimulated which eventually results in

purchase or at least revisits. We gave it a weight of 40% indicating high level of

importance.

Customer care: This is another important factor in shaping up the entire customer experience. It

includes the behavior and interaction of employees with customers on the time of

purchase as well as dealing with the post purchase inquiries. How deep the

company goes into establishing a one to one relationship of employees and

customers and also maintaining a distance so as not to intrude in their privacy is

also important. A weight of 30% was hence allotted.

Quality/ Durability:As explained earlier, quality is something that a consumer often make a

preconceived about, but he actually understands it after the trial of the product.

Quality is a very important factor for customer retention so we gave it a weight of

30%.

Ide

as

Chen

one

Baree

ze

EXPERIAN

TIAL

scor

e

weig

ht

score weig

ht

score weig

ht

store

outlook

4 0.4 1.6 5 0.4 2 3 0.4 1.2

customer 5 0.3 1.5 3 0.3 0.9 4 0.3 1.2

care

quality 4 0.3 1.2 5 0.3 1.5 3 0.3 0.9

total 4.3 Total 4.4 Total 3.3

Here the brand is clearly ahead of competition in terms of the “customer care”. The

fact that the company goes a step ahead to identify the needs of customer and tries

to fulfill those is evident. Ideas has this very unique department of “embroidery and

design” to listen to the particulars of each customer and personalize the order

accordingly.

Financial Review

Company performance—Gul Ahmed

Gul Ahmed Textile Mills is one of the biggest names in the Pakistan textile industry.

It is leading exporter of home textiles. It also manufactures lawn fabric for the

domestic market. The Gul Ahmed Group began trading in textiles in the early

1900s. In 1953, the group decided to enter the field of manufacturing under the

name Gul Ahmed Textile Mills Limited, and was incorporated as a privately limited

company in 1972.10

Super brands Ltd. is an independent organization that promotes the discipline of

branding by paying tribute to exceptional brands throughout the world, and it chose

Gul Ahmed as a Super brand from the top 100 brand names from all business

sectors in Pakistan, based on its exceptional performance, quality products, good

governance, and over 5 decades of excellence in the field of textiles.11 Thank You

customers!

Considering the growing trend towards the retail industry in Pakistan; Gul Ahmed

launched a retail outlet by the name of IDEAS in 2003. ‘Ideas’ offers a range of

home textiles and furnishings for the bedroom, kitchen and bathroom, as well as

men's and women's apparel. It also provides in-house embroidery and tailor-made

services. Ideas® strives to be an international brand that cares for its customers and

fulfills their home and personal needs. Their aim is to ‘provide a distinctive cozy

10 www.gulahmed.com

11 www.wikipedia/ideas at gulahmed/

shopping environment with attractive décor, a consistent availability of high quality

products and new product innovations’12.

Gul Ahmed is an expensive and stylish brand which is always trying to keep up with

the forever evolving fashion trends. In the company’s own words, ‘Gul Ahmed is

fashion’13.

Apart from Ideas, Gul Ahmed has even a complete online shopping store which can

be easily accessed and stuff can be easily bought. What differentiates Gul Ahmed

from its competitors is the focus on customers. It caters a lot to its customers and

looks after their needs and convenience which has earned it a very a loyal customer

base.

Sales Channel performance-IDEASChannel marketing proves to be a “fit” if the process better responds to the desires

of the target market than the organization could do alone. An organization must

answer the question, “Will our customers or clients be better served by channel

members rather than having us performs these functions?”

Gul Ahmed in this regards, tend to offer its product through both its company

owned retail outlets i.e. IDEAS and through other retailers that offer all types of

varieties of clothing from apparel industry.

Waiting timeIt is the speed of providing faster service may be magnified through the systems

that channel members offer. Ideas tend to present exclusive variety of its clothing

range that is not available anywhere in market on the introductory phase. This

12 www.gulahmedfashion.com

13 www.gulahmed.com/magazine

means that original prints and clothing range first gets to IDEAS then to any other

outlet of mix retail stores.

LocationGetting the product in the right place and time is important. Arranging for

“authorized dealerships” throughout a wide geographic area allows products to be

conveniently and affordably accessible to customers. In this regards, Gul Ahmed has

worked extensively to build and maintain its channel distribution networks. IDEAS

solely serve the major purpose of bringing out all the products that fall under Gul

Ahmed brand umbrella.

Product varietyThe ability to purchase other products from a retail store may enhance the sales

and/or margins of all products offered by attracting customers who appreciate the

variety of products.

And this is what IDEAS is doing. They are hedging upon an exclusive market

segment in Pakistan that is more brands conscious and is willing to pay more for

better quality, exclusive designs and product range.

The company distinctively identifies its product line into various categories. These

are as follows;

For home

Gift ideas

Personal wear

HOME IMPROVEMT:Bedding:

Bedding entails Adult Bedding , Kids and Teens , Infants Bedding , Bed Basics,

Cushion Covers. In each of these sub categories the main features are;

o Intricate stitching styles add an extra touch of sophistication.

o Use of satin trims, piping, pleating and embroidery enhance the luxury

of the 100% cotton fabric.

When it comes to kids and infants the design team is again triumphant by coming

up with really bubbly, lively colors. However one of their designs prepared for teens

particularly seems too hard to be convincing. This is shown in the picture of their

bed quilt as follows which reads as “cool” and “babe”. People now are becoming

image conscious. They want their outlook to convey out rightly the fact they are

modern ad hip rather then this thing pasted on their accessories.

Kitchen:Currently the company doesn’t have kitchen accessories to sell off however as a

truly caring company, it provides its customers with short and crisp tips of making

their kitchen ornamented.

Bath:Ideas extensive range of towels, robes, shower curtains, curtain hooks, bathroom

sets and accessories are an example of how well the companies knows the

importance of personalization makes the customer satisfaction experience a real

enduring one. Moreover the attention to detail is such that the company offers its

customers to pick from over 100 types of embroidery designs for their towels. It

calls it as the “monogramming facility”14. Moreover there is a variety of other stuff

such as bath robes, bath mats, shower curtains, bathroom sets etc.

Home furniture:This is another personalized area where the company deals with adults, kids and

teens differently. The company makes a sound depiction of its name through its

entire product range. For instance would you ever imagine a “flower chair” or a “lip

14 http://www.ideas.com.pk/html/bath.htm

seat” if their physical existence is in the literal meanings of the names? Very

creative to imagine right? But at ideas, creativity gets out of the covers of

abstraction and blossoms by taking a tangible state. The same goes for the teen’s

furniture. The company comes up with unique ideas such as “car chair” and “hand

chair” etc so as to appeal to this market as well. Moreover as we know that children

have a very important role to play in the purchase decision so the company takes

care of that as well.

GIFT IDEAS: The company is really sensitive to the changing trends and demands of today’s

consumer. Time management for instance was a phenomenon really crucial for the

west but now as the boundaries are blurring, people in east value their time equally.

Moreover the trend of socializing is increasing now. These two facts are taken care

by the company well enough. It has come up with a wide range of gifts for its

diversified target market. It has offerings for New born, Kids, Teens and gifts for all

Occasions. Moreover the company has a separate department of “Monogramming

and embroidery” which has the following features;

Custom monogramming and Embroidery motifs

Available in 100 styles and 15 thread colors.

Due to their personalized nature, monogrammed items are not returnable15

15 http://www.ideas.com.pk/html/monogramming_embroidry.htm

Personal Wear

Menswear:

A smart collection of loose fabric in 7-meters packing with unique colors is available

in the following fabric qualities: Latha, Poplin, Cambric, Satin, Leno cambric, and

embroidered latha, Khaddar, Dobby and Leno. In addition to this unstitched

collection, the company also has ready to wear for men.

Women's wear:The company has a diversified range of clothing available for ladies of all ages. Also

there are some smart kurtis and casual tops available. The fashion line for women

comprises of finest quality fabrics for each season. The summer and midsummer

collections have an exquisite range of fine quality printed cotton lawns, voiles,

100% silk chiffons with jacquards and embellishments, embroidered cottons and

fine quality yarn-dyed fabrics, while the winters bring the best of printed linen

fabrics to dress up the women of today

Product performance (IDEAS)

Forecasting for next 3 quarters:

Net cash used in/generated from

operating activities

1-Mar-07329,39

4

1-Sep-07205,02

8

1-Dec-07 20,433

1-Mar-08

-

853,74

5

1-Sep-08

-

1,132,2

70

1-Dec-08

-

451,26

4

Forecasted

1-Mar-09

-

209,42

8

1-Sep-09 -

655,19

4

1-Dec-09

-

812,42

6

0 2 4 6 8 10 120

2

4

6

8

10

12

ActualLinear (Actual)ForecastLinear (Forecast)

Quarters

Sale

s fro

m O

pera

tions

Analysis of Projections:The graph shows a downward trend in projection. This is not because the company

has a decline in sales; rather the company is involved into more and more

expansion of its operational units in Pakistan. Hence more money is spent on re-

investment thereby showing a negative trend of profits. On the other hand the

company also right off a loss of 105million Rs due to money swap issue arising due

the depreciation of Rupees vs. Dollar.

But it can be clearly seen from the sales itself that the revenues are increasing each

year due to higher customer demand and the strategic product portfolio offerings in

this Retail outlet for its target market audience.

Corporate Strategy

Vision“Ideas® strives to be an international brand that cares for its customers and fulfills

their home and personal needs. Consumer and professional channels will recognize

us as the leader in exclusive, high quality, modern designs as well as impeccable

service with courteous, informed and well-groomed sales consultants. Our aim is to

provide a distinctive cozy shopping environment with attractive décor, a consistent

availability of high quality products and new product innovations.”

The vision of Ideas begins with an inspiration of being an international brand. This is

a symbol of their growth plan. They are not only focusing on expansion in land but

their vision clearly states their future plans of going international with their brand.

So, we expect the international expansion as one of their major growth plan. It is

also stated in their statement that they want to build and image in the minds of

their consumers that they give their consumers utmost priority and value. This is

both associated with the experiential brand perception (the brand name Gul

Ahmed) and the real products itself.

Another major focus they have laid upon in their vision is the relation that they have

with their customers and professional channels. That means that this statement is

not for the consumers only but for anybody who is directly or indirectly related to

Gul Ahmed. Their main focus is also on the employees and staff that they have

which signifies that they train and guide their staff and employees well, to help the

customers when they ask for. Your employees are the face of your organization or

in this case the retail store, it is the service and helpfulness of the staff that would

make the experience of the customer worthwhile. They also mentioned the

importance they give to quality and innovation; this is true because they offer

services (customization) that no other store offers presently.

The vision statement of the Ideas follows a holistic approach. It shows their concern

not only for their customers but also defines their growth plans, employee training

and concern for quality and concern. So, they have put in a nut shell all which the

company believes in and gives importance to in simple words for everybody to

understand it and know Ideas better.

Financial Outlook:

Growth

Growth rate:Initial year 2003 & Final year 2008:

Y=Y °×(1+G)t

11650=5448(1+G)6

116505448

=(1+G)6

log 2 .13=log(1+G )6

0 .7566=¿ ln (1+G)¿

G=0 .134∨13 .4%

This shows significant growth rate over the years from 2003 till end of 2008.

Product Strategy

Target Market & customers

PLACEMENTIdeas is a store by Gul Ahmed and therefore it follows exclusive distribution. The

products by Gul Ahmed are available at its store that is located in the major cities of

Pakistan like

Karachi

Lahore

Islamabad

Hyderabad

At these stores customers get the entire range of Gul Ahmeds products including

home products, gifts and personal wear.

Along with its physical presence it has also maintained its online shopping facility

for its consumers. The consumers can log on to the website and can order online.

The online presence has helped it gain the international consumers and in this way

it has buit has brand internationally.

PROMOTIONIdeas follows integrated marketing communication in which it uses a number of

advertising mediums to communicate its personality and positioning to the

consumers. Its IMC includes the following advertising mediums

Billboards

Banners

Magazine

News paper

Internet

Ideas has its own magazine that it uses to communicate its new offerings to its

target market. The magazine is published twice a year with the changing variety

due to the change in the season. Complete information is given with images about

its product range including home products, gifts and personal wear. Different

celebrity endorsements are used to enhance the effectiveness of the brand. It has

also been given the title of SUPER BRANDS in Pakistan.

Billboards are used to increase the brand visibility in Lahore, Hyderabad, Karachi

and Rawalpindi. Competitors have also placed billboards. New happenings are

mostly communicated through banners and newspapers. It has also maintained its

online presence through its website which also offers subscription and the

consumers are updated through mails also.

Ideas also care about its corporate social responsibility. It has taken steps to

make sure that the environment remains clean. For this the company has installed a

state of art water recycling plant to biologically treat its processing waters and gas

turbine unit to produce energy at a low carbon emission. Some of the areas that

they focus include:

Re-using water

Re-using energy

Adopting efficient ways of producing energy

Disposing industrial water after proper filtration treatment

PLC & BCG

BCG:

Product Theme and Pricing

Brand Elements analysis:

The colors: The logo of “ideas” is very straightforward and simple. The use of only two

colors which synchronize in effortlessly depicts the fact that it is kept simple. The

color green is symbolic of eternity, family, harmony, peace, exclusivity etc. these

are important characteristics of the brand. For e.g. providing a wide range of

accessories fulfilling the needs of a broad target market from infants to adults, men

women etc. it stands out as a brand meant for all. Moreover the prices are

exclusive. Not everyone can afford to buy the products offered by “ideas”. Looking

from another perspective a subliminal message that the brand might want to

communicate to its audience can be that it is a nationalist brand. As both the colors

are of our national flag. One Criticism however can be that the colors lack in

innovative appeal. These two colors are seen together quite a lot and the consumer

might complaint that there’s not much new to see. Probably the emblem taken from

the parent brand i.e. Gul Ahmed could have been colorized. This is because when

we go through the entire product range, we as a general target audience come

across a lot of vibrant and striking colors and so expect that to be revealed in the

logo.

The Text:The main text which is the brand name is in bold format. This is an indicator of

strength which might be in any of their core competency particularly quality.

Variety and exclusiveness are some of the other strengths. The appeal of the text is

quite bubbly. “by Gul Ahmed” written in the end serves two purposes;

Firstly it shows synchronization with the parent company

Another important thing that it should be concerned with is that sometimes

sub brands come to much under the influence of the umbrella brand to the

extent that their original personality is underplayed. So it should take care of

this fact for future.

The symbol:There are two symbols in the logo. Firstly there is a pattern of petals taken from Gul

Ahmed’s logo. This is fair enough as Gul Ahmed is the founder as well as the

umbrella brand and association at any point in time cannot be denied. The other

symbol is “®” which ensures that it is a registered company with all rights reserved.

PRICEThe pricing strategy for any brand is a bit high which is also justified being a brand.

The pricing strategy at Ideas is exclusive as it has been positioned as an exclusive

brand for the consumers. After complete market analysis, the marketing

department at ideas has segmented its market and targeted the upper and elite

class for which the high prices are fair enough. They also charge higher prices when

the demand of a specific product is very high. The target market pays for the value

that they desire from their brand and describe their personality.

Gul Ahmed has positioned itself as a high quality product and therefore the prices

are very high. The brand uses its high price to signal high quality.

Gul Ahmed along with its exclusive pricing also follows competitive pricing. The

prices of Chen One, Bareeze and Ideas is almost the same in each product category.

Ideas also offer discounts at the end of every season. The discounts are usually

given twice a year for a specific period of time that is almost a month time. The

discounts are given according to the demand for each product category like more

discounts on less demanded products to trigger sales of those specific products.

Product RoadmapGrowth in apparel and retail industry has led to a farfetched demand and a gap in

the market for high quality products that meet the needs of a specific segment in

the urban centers of Pakistan, who are willing to pay more for extra exclusive

designs and product offerings in this regards.

With a clear plan for future products in apparel and clothing industry, Gul Ahmed

led an initial round of funding and began to expand the company into its retail

outlets i.e. IDEAS. As they began to follow-on rounds, a potential driver in the

market opened a further niche’ i.e. their branding may apply to other sectors,

particularly the men’s wear, furniture and cosmetics. Once this switch was made,

the growth of IDEAS became fruitful, because the market was large and growing,

and the product direction was clear.

The current fiscal year 2008-2009 is expected to be difficult due to uncertainties

and discouraging economic scenario.

• Domestic economic slowdown

• All time high inflation

• Phenomenal increase in borrowing cost

• Unprecedented increase in gas tariff

• Increase in the minimum wage by 30%

• Continuous decline in the value of Pak Rupee

• R&D support has not been extended by the Government beyond June 30, 2008

• Adverse economic conditions, looming recession and banking meltdown in the

developed world and worldwide economic gloom

Their regular and aggressive modernization and upgrading of production facilities

and the strong local presence with the newly developed retail base will help in

riding through this rough period. In this difficult environment they need to intensify

their efforts to optimize costs without compromising quality. They need to be

aggressive, focused and need to be innovative in marketing including retail outlet

expansion to extend their customer reach. They also need measures to reduce large

exposure in a single area. So through enlargement of the sales mix they will be less

exposed to risk and a more diverse sales mix will lead to less dependence on a

single area. Thus these measures would also give them more flexibility and have

ample opportunities to maneuver to generate profits both through a combination of

economies of scale and flexibility.

Quarterly DeliverablesIn this regards, IDEAS need to improvise its home improvement product category.

This is so because of varying demands in different season, especially in winter when

the demand for dowry is high due to higher rate of weddings. Therefore IDEAS need

to strategically forecast its quarterly deliverables that are required when needed

and as per demand inflation.

Products and FeaturesMore products are needed to be included in the men’s fashion wear category and

Gul Ahmed through IDEAS can clearly hedge upon to a high demand category of

shoes and leather apparel too. This would further expand their product portfolio and

hence through proper branding techniques, it will enable IDEAS to outshine its

competitors such as ChenOne and Bareeze’

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