Brand Portfolio of Peter England

MARKETING MANAGEMENTBRAND OBSERVATION PORTFOLIO PORTFOLIO PETER ENGLAND

Introduction

� Peter England, the hallmark of honesty, started off with shirts and now comprises of the entire men's wardrobe containing the full range of garments.

� Popular for lifestyle brands.

� The largest selling shirt brand in the country.

� Owned by Madura Garments in India with a retail value of 130 crores.

Background

� Launched in March-April 1997 in India.

� Became a 1 million brand in 2 years.

Market Segment when launched :-� Market Segment when launched :-

Segment Price range Share

Premium Rs 500+ 15%

Mid-Price Rs 250-500 35%

Economy Below Rs 250 50%

Marketing Concepts

Marketing objective� To build Peter England into the largest selling

brand in India.

� To establish Peter England as an international

quality brand at an affordable price.quality brand at an affordable price.

� To create a quick and universal awareness of the brand’s

USP of quality and price.

� To build strong brand preference and sustain brand loyalty through

attractive imagery and constantly reiterate the product’s pluses.

Marketing Mix

Peter England follows the four Ps of the marketing mix:

� Product architecture – The range comprises regular office wear, special occasion wear and casual wear.

� Pricing – Price grid integrity is maintained by ensuring that 65 per cent of the brand offering is below MRP 500 through 'Core' range.

� Promotion – Bold usage of vernacular media, Press and TV media , Print media, right brand associations through sponsorships.

� Place/Distribution – 162 exclusive outlets across 69 towns, distribution through monthly advance ordering to customizing to the retailer needs in terms of the design-size-style preference.

CONSUMER BEHAVIOUR

Customer Value And Satisfaction

� Ensured the consumer's need for 'product plus brand imagery'.

� Delivery of consistent good quality was ensured.

� Contemporary designs, colours and fabrics were used. used.

� Wide distribution ensured easily availability

� Well-orchestrated merchandising drove guaranteed market visibility.

Contd…

� Tied up as 'Just honest-to-goodness quality. Available at an honest-to-goodness price'.

� Thus emerged the brand line: “Peter England - The honest shirt”.

The brand’s communication has moved from telling � The brand’s communication has moved from telling the consumer to “what the brand is” to “what the brand does”.

� The launch of suits has re-energized it and now it is “Peter England- Honestly Impressive”.

Market Evolution

� Tied up as 'Just honest-to-goodness quality. Available at an honest-to-goodness price'.

� Thus emerged the brand line: “Peter England - The honest shirt”.

The brand’s communication has moved from telling � The brand’s communication has moved from telling the consumer to “what the brand is” to “what the brand does”.

� The launch of suits has re-energized it and now it is “Peter England- Honestly Impressive”.

The Honest Shirt Honestly Impressive

SEGMENTATION, TARGETING AND POSITIONING

Segmentation,Targeting And Positioning

5. Positioning for Medium priced and Economy Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

2. Develop Profilesof Resulting Segments

3. Measures of Segment Attractiveness

4. The Middle income segment was the target.

and Economy Segment

MarketTargeting

Market Segmentation1. Identified the income Segment

of the Market

Market Segmentation

� While venturing into “The Ready to wear garment” sector, it identified the shirt segment as its focal entry point.

� Since then it has identified further segments namely Since then it has identified further segments namely trousers and suits with further sub-segmentation in each segment.

Niche Marketing

� Catering to Executives through Formals

� Casual Wear through Elements Via

� The Anti Wrinkle Collection

� The Solids Collection

� The Festival Collection

� The English Cottons Collections� The English Cottons Collections

� The Summer Mints Collection

Segmentation Procedure

INITIALLY� It identified Customer’s need for Brand + Product Imagery.� Used the Demographics and lifestyles to enter the mid price segment.(Rs 250-

500) in both Formal and Casual( Elements)

� Test launch in diverse Geographies.(Like Suits & Blazers)� Huge Potential and Good Growth rates in the mid price segment.� Value proposition of Quality Via the imported fabric + Affordable Price� Value proposition of Quality Via the imported fabric + Affordable Price

EVENTUALLY� Targeted Multiple Markets

� Ventured into:� Trousers in 2000.

� Suits in November 2004.

� Innerwear in April 2005.

� Lifestyles

Basis For Segmentation

Income,occupation,Age(25-28),gender(men)

Formal,Casual,style Statement,ambitious

Bases

for Segmenting

Business

MarketsSituationalFactors

Income,PriceRange

Value for price,Quality,durability

Criteria For Segmentation

SubstantialitySubstantiality

IdentifiabilityIdentifiability

The middle income segment is large.Peter England now considers high income

Level segments.

The segment is identifiable .IdentifiabilityIdentifiabilityMeasurabilityMeasurability

AccessibilityAccessibility

ResponsivenessResponsiveness

The segment is identifiable .

The middle and high income groups have access to marketing mix(Televisions,

Newspapers,hoardings etc).

The price ranges available are economic, mid – price and premium.

Targeting

� Mid Price segment concentration.

� Entry into Premium segment.

� Followed the Selective Specialization Strategy through Shirts� Followed the Selective Specialization Strategy through Shirts

� Trousers

� Suits

� Inner wares

� Accessories

Positioning

� Peter England brand has been positioned for the masses and is in the mid-price category. It offers value for consumers at affordable price.

� It is distinctly positioned for different categories as that it is ensured that Madura Garments brands grow through different target customers rather than cannibalizing on each other’s target segment.than cannibalizing on each other’s target segment.

� Peter England is a shirt brand. Once launched, it got into the consumer’s mind under the honesty platform and the logical extension that should happen in the marketplace is this evolving into an honest wardrobe. So, allied products are offered that are appropriate to the brand and ensure the same benefits, it is a proper extension.

Positioning For Competitive Edge

Product Position

� Peter England shirt was projected as an ‘Honest Shirt

� The image was reinforced by ‘Honestly Impressive’

Shirts,Trousers, Suits,

Accessories ,inner wares

Design,quality,value

for money

Positioning For Competitive Strategies

Casuals ,Formals

Quality ,Durability,

Honesty/ trustworthiness

Middle and High

Income group

B

A

EEDD

CCHH

GG

FFMid-price against

Unorganized market

Quality and style Away

from organized market

Developing Competitive Differentiation

Shirts ,Trouser,Accessories Quality,Durability

Honest Shirt

Areas for CompetitiveAreas for Competitive

Differentiation

Robust Distribution chains,

Shops,exclusive showrooms

Middle Income,High Income,Middle Income,High Income,

Men

PRODUCT

Product

� Range realigned into regular office wear, special occasion wear and casual wear.

� A string of innovations delivering value introduced across all above categories

Shirts,Trousers,Accessories

� Quality and Price:Mid priced

to Premium range.Quality across all above categories starting from English cotton shirts at Rs 375 right up to British micros at Rs 595.

� Trousers range from Rs 545 classic formals to wrinkle-free cotton chinos at Rs 895.

� Elements polo tees at Rs 299 an instant hit in casuals.

to Premium range.Quality

increases with Price

� Range:Wide range in all

collections.

� Material and Style :

Trendy,formals,business

casuals.Guarantee against

material ,stitching and

colour.

Product Mix

� Width:

Madura Garments have two categories of brands –

� premium section, which includes Louis Philippe, Van Heusen,Allen Solly

� popular brands like Peter England, Elements and San Frisco jeans wear.

� Length:Length:

Peter England is into :

� shirts, trousers, and accessories like ties, belts and socks.

� Depth:Peter England shirts available in:

� Price range varied

� Different colors

� Different designs

Product Levels

Peter

England

Packaging

Style

Durability

AugmentedAugmented

ProductPotential

Product

QualityDesign

Warranty

Clothing

Actual(Basic+Expected)

ProductCoreCore

Product

Major Branding Decisions

Brand SponsorBrand Sponsor

Brand Name Selection

Peter England

Brand Strategy

Brand Extension

(Trousers,Accessories,Suits,etc)

Brand Sponsor

Manufacturer

Madura Garments

BRAND DECISIONS

� Attributes: Good Quality

� Benefits :

� Functional : Comfort

� Emotional : Simplicity

� Values : Honesty

� Culture : Fashionable

� Personality : Honest

� User: Young Executives

Contd…

� Word Association : Honesty

� Personifying The Brand : Down to earth

Laddering Up To Find The Brand Essence

� Why Peter England ? � Why Peter England ?

Because it is a good buy.

� Why is it a good buy?

Because it is affordable and good quality

� Why is affordability and good quality important to you ?

Because I want to look good and at the same time not spend too much

BUILDING BRAND IDENTITY

The honest shirt Honestly Impressive

PROMOTION

DECIDING ON THE MARKETING COMMUNICATION MIX

� Promotion – TV and print, the main vehicle for PE

� Local support added through hoarding campaigns � Local support added through hoarding campaigns showcasing product innovations

� Right brand associations built through sponsorships (such as WISDEN Cricketer Awards 2003 co-sponsor) to build consumer connection

Advertising: Media selection

� Peter England has around 160 showrooms, spread across 69 towns. So, optimum to cater to audience through television.

� Also, communicating through print medium, for expanding retail network.Also, communicating through print medium, for expanding retail network.

� To build Peter England’s retail, going for vinyl outdoors –

for announcing the new collection as well as the new locations.

Advertising (9%Sales)

A Difference

�Original concept of Peter England by Madura Garments was exposed in the south through Tamil advertising.south through Tamil advertising.

�Dynamic and adaptable strategy

�Public Presentation

�Pervasiveness

�Amplified Expressiveness

�Impersonality

Direct Marketing

Sales Promotion

� Communication:tv ,

newspapers ,internet ,

hoardings,vernacularhoardings,vernacular

media etc.

� Incentives:discounts ,

sales ,’Buy One Get

One Free Offer’.

� Invitation:

Public Relations and Publicity

� The ‘Honest Shirt Campaign’

create a distinct positioning

for itself.

High Credibility:Six month � High Credibility:Six month

against guaratee against

material,colour, stiching.

� Honest to goodness price

and quality.

� Ability to Catch Buyers off

Guard

� Dramatization

Developing Effective Communication

Middle Income & High Income Group

Making Peter England a global Brand

Establishing Budget

Newspapers,Television,Magazines,Hoardings,

Internet etc

Shirts in yarn,Striped,Plain,Formal Trousers

Knit & Jeans wear,Beach Cargos,Cotton

Capri's …

Multi brand outlets,Departmental stores,Exclusive

Brand Outlets

Managing The Sales Force

Managing sales

force

Recruiting Innovative

Enthusiastic sales

Force

Group Management

training(GMT)

Monitoring target

Levels

Rewards and growth

opportunities

Supervising sales

representatives

PRICING

Pricing Objective

� Peter England aims at maximizing its market share

� Introduces Market Penetration pricing

Peter England in 1997 the journey begins … Peter England in 1997 the journey begins …

� Peter England follows Value Based Pricing

� Goes in for a High Value Strategy

� Offers the consumers premium quality at medium price

Pricing Strategy

� Price grid integrity maintained by ensuring 65 per cent of the brand offering was below MRP 500 through 'Core' range

� At the same time premium products introduced at the top end through collectionslike ‘the solids collection’ and ‘the festival collection’

Factors For Price Setting

Internal FactorsInternal Factors(Cost Of Fabric,Segment Targeted,

raw materials)

Pricing

Decisions

External Factors(Taxes,Import Duties,Govt.Policies)

Contd.

� PE forced to pay excise duty in 2001

� Used higher priced imported fabrics

� Faced stiff competition from regional players� Faced stiff competition from regional players

� Resulted in price increase

� Forced out of the mid price segment

� Decline in sales

Pricing Adjustments

� Sales Promotions- Summer Season offer – buy 2 get 1 free (2005)

� Promotional pricing- cash discounts offered to online shoppers on various online stores such as shoppers on various online stores such as yahooshopping.rediff.com

� Discriminatory pricing- PE shirt in shop priced at Rs. 565; PE shirt online available at Rs. 446

Turnaround In Pricing Strategy

� Made arrangements for low priced quality fibre in India to reduce production costs

� Went back to the below Rs 400 price point with 75 per cent of the merchandise being priced below Rs per cent of the merchandise being priced below Rs 500

� Currently market leader in the mid price segment

� Generated revenues of about Rs 150 crore in the last fiscal and about 30 lakh shirts were sold under this brand name.

The Peter England range available at……

� Shirts priced at below Rs.500

� Trousers priced at below Rs.1200

� Innerwear starting from Rs. 64 to Rs. 499� Innerwear starting from Rs. 64 to Rs. 499

DISTRIBUTION

Place / Distribution

� Place/Distribution – The distribution strategy is adapted to meet newer demands

� Core range was made available “on tap” so that the retailer could increase his stock turns through weekly replenishmentscould increase his stock turns through weekly replenishments

� Collections distributed through monthly advance ordering to customizing to the retailer needs in terms of the design-size-style preference

� Branded shelf route taken in MBOs to showcase the range

� The Peter England exclusive outlet network expanded to 162 across 69 towns

Distribution Channels

� Most efficient and powerful distribution network

� Loyal and dynamic network of agents & distributors

� Strong retail presence with over 250 dedicated retail � Strong retail presence with over 250 dedicated retail outlets(Planet Fashions) and over 1500 multi brand outlets Fashion

Distribution Channels Current Trends

1. Web based ordering for agents (Fashion brands) 2. Automatic replenishment system for distributors

(Distribution brands) 3. Online order processing for factory stores4. Plans to set up showrooms and Mega stores in the

UAE, Sri Lanka and Bangladesh. ‘5. Plans to tie-up with indiatimes.com and sify.com for

online selling.

Channels for Consumer Products

PRODUCER: 8 factories and a warehouse

AGENTS : 15 Agents

WHOLESALERS : 22 IN NUMBER

120 exclusiveRETAILERS : 120 exclusivefranchisee showrooms

3500 retail outlets spread across the country.

Merchandise through 500 Multi Brand Outlets (MBO’s)

Six Peter England mega stores in Kolkata, Bangalore and Pune.

Changing Channel Structure

� All Factories are ISO 9000 Certified by RWTUV of Germany

� Recent initiatives in a SATCO Washing unit and Wrinkle Free unit � State of the art ordering system for agents &

distributors distributors � Automatic replenishment systems for showrooms and

distributors � Sophisticated software systems to collect orders, ensure

superior order fills and customer service � First company in India to implement Enterprise

Resource Planning (ERP) in inventory-specific solution called 'Apparel and Footwear Solution.'

Changing Channel Structure

VMS : Vertical Marketing System

Contractual Marketing System

� Coordinates distribution through formal agreements� Coordinates distribution through formal agreements

� among channel members.

PRODUCT LIFE CYCLE

Introductory Stage

� Introduced for the mid priced sector

� Brand became a rage between 1998 and 2000

� Had competition from players in the unorganized sector

� Factors that hindered its growth(Pushed out of mid price sector)

Rules favoring unorganized sector� Rules favoring unorganized sector

� Taxes and Import Duties

� Import of fabric (40 % from middle East)

� The price of the products increased

� Out priced in comparison with the unorganized players

� Finally pushed out of the mid priced sector in 2002

Summary of Product Performance In Introductory Stage

SalesSales Low sales Low sales

CostsCosts High cost per customerHigh cost per customerCostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

High cost per customerHigh cost per customer

Negative or lowNegative or low

Aimed at capturing the mid priced segmentAimed at capturing the mid priced segment

Peter England ShirtsPeter England Shirts

Medium - pricedMedium - priced

AdvertisingAdvertising ‘Honest Shirt’‘Honest Shirt’

Growth Stage

� New strategy in 2002� The hindering factors got nullified due to

� Change in Rules by Government� Developments in India to match the fabric

Relaxation of duties� Relaxation of duties

� New strategy in 2002� In 2003 offered honest pricing with international

quality� Rs 400 price point with 75 per cent of the

merchandise being priced below Rs 500

Contd.

� Building of the distribution chain

� Focused on Quality Retail

� Opened of shops and showrooms

� Focused on shirt items� Focused on shirt items

� Peter England grew by 20% over the previous year.

Summary of Growth Stage

SalesSales

CostsCosts

ProfitsProfits

Sales increased by 20 percentSales increased by 20 percent

Reduced costs due to fabric and reduced dutiesReduced costs due to fabric and reduced duties

Rising profitsRising profitsProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

Rising profitsRising profits

Maximize market shareMaximize market share

Focus on international quality and non shirt items

Focus on international quality and non shirt items

Medium PricingMedium Pricing

DistributionDistribution Building distribution chains,retail outletsBuilding distribution chains,retail outlets

AdvertisingAdvertising Through Televisions ,newspapers,hoardings etc.

Through Televisions ,newspapers,hoardings etc.

Maturity Stage

� To build Peter England’s retail, vinyl outdoors used –for announcing the new collection as well as the new locations.

� 90 per cent of the sales come from unorganized retail and only the remaining from organized. retail and only the remaining from organized.

� To sustain this growth, the more important part of the agenda is to transform them into lifestyle brands and more and more into organized retail.

� Peter England major event and installation credits include – Site designer, Universal Playground, Adelaide Festival of Arts 2004

Contd.

� Evolved into a complete lifestyle brand which has both formalwear and casual wear

� This brand generated revenues of about Rs 150 crore in the last fiscal and about 30 lakh shirts were sold under the "Honestly impressive" catch line."Honestly impressive" catch line.

� The brand is no more uni-dimensional and known for its value for money benefits(Premium level).

� More number of shops and exclusive showrooms.

� Shirts in the new collection have anti-microbial characteristics.

Maturity Stage

SalesSales

CostsCosts

ProfitsProfits

Peak SalesPeak Sales

Low cost per customer due to fabric and reduced dutiesLow cost per customer due to fabric and reduced duties

High profits then lower profitsHigh profits then lower profitsProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

High profits then lower profitsHigh profits then lower profits

Maximize profits while defending market shareMaximize profits while defending market share

Diversify brands and models, Trousers , suits, inner-wears, lifestyles,accessories .

Diversify brands and models, Trousers , suits, inner-wears, lifestyles,accessories .

Price to match or best competitors (Medium Pricing)Price to match or best competitors (Medium Pricing)

DistributionDistributionBuild more intensive distribution150 showrooms, spread across 69 towns. Build more intensive distribution150 showrooms, spread across 69 towns.

AdvertisingAdvertisingStress brand differences and benefits.

Honestly impressive.Stress brand differences and benefits.

Honestly impressive.

Marketing Strategies For Product Life Cycle