Internship Report at PT. Lennor New Comer in Fashion Retail Industry Internship Project 29 March – 16 April 2010 at PT. Lennor, Jakarta Sista Armita Sari
Internship Report at PT. Lennor
New Comer in Fashion Retail Industry
Internship Project29 March – 16 April 2010
at PT. Lennor, Jakarta
Sista Armita Sari
Internship Report at PT. Lennor Page 2 of 36New Comer in Fashion Retail Industry
All the content of illustration, company logo and information about PT. Lennor in this report has been officially permitted by
PT. Lennor and is solely used by the author for academic purpose.
For permission to additional use, please write to PT. Lennor, Crown Palace Unit D19, Jl. Dr. Soepomo No. 231, Jakarta
Selatan, Indonesia.
Republication or reproduction of any illustration, company logo and information by any party whether it in a book or in any
other resource, for any commercial use, is strictly prohibited.
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Foreword
Retail fashion is one of the most challenging and fast pace industries. To develop
and maintain the industry it demands integrity and synergy. Fashion wise, a
strong character and uniqueness are the core values to establish a remarkable
brand and to compete in the vivacious industry as one of the biggest company of
retail fashion in Indonesia.
PT. Lennor – developing retail fashion that still has many opportunities to dig out
and to develop. LENNOR brand is mainly offers Indonesian traditional woven cloth
in casual and executive style while wAw (What Are You Wearing) focuses on
knitted fabric for casual style.
The internship that I have undertaken in PT. Lennor was posted in the
Merchandising team and supports as the Fashion Designer for wAw (What Are
You Wearing) brand, which on the following this report it will be referred as wAw.
The assignment that I have been involved was designing the casual clothing line
and preparing the paper pattern of the designs. Nevertheless, in this internship
report I took the opportunity to study the big picture of PT. Lennor generally and
wAw specifically. Consequently, this internship report mainly examines the
potential and possible obstacle in PT. Lennor as the developing retail fashion
industry and the established brand of the respective company; LENNOR and
wAw.
Research of the internship report was conducted by using qualitative method;
analysis by internet research, direct surveys and interviews. The analysis was
concentrated merely in direct visit to several store outlet, Bazaar venue, and
short interview with the General Manager and the Lead Designer of wAw.
Additionally, the research about the product and the target market generally was
performed by personal research through store visit and stock inventory.
By and large, the objective of this internship report is to study the developing of
retail fashion industry and the brand image in the broad picture by learning on
the surface of daily business operation in PT. Lennor. Therefore, this internship
report will be focus on the organization as a whole and emphasize on the target
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market. In order to summarized the internship report, the result of the research
is compiled into several aspects which consist of SWOT (Strength, Weaknesses,
Opportunities and Threats) Analysis of PT. Lennor whereas LENNOR and wAw as
the focal study. Since the analysis will be concluded based on the personal
qualitative analysis, as a result all the content may not be as precise as the
objective and target of PT. Lennor.
Due to the limited time and resources, this internship report may have several
shortages on analysis and result. In this manner, all the valuable critics and
comments are welcome in order to enhance the knowledge and information of
this internship report. Last but not least, hopefully this report will make a great
benefit for all the students and the Company where the Internship was performed
as well as my study and career in the future.
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TABLE OF CONTENT
FOREWORD 3
TABLE OF CONTENT 5
GENERAL BACKGROUND 6
LENNOR 9
Product Specification 10
Size Specification 12
Material of Fabric 12
Care Instruction 12
Price References 13
Sales Promotion Event 14
wAw (What Are you Wearing) 15
Product Specification 17
Material of Fabric 18
Care Instruction 18
Price References 19
Sales Promotion Event 19
RESEARCH ANALYSIS 20
SWOT Analysis for PT. Lennor 22
SUMMARY 25
APPENDIX 26
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GENERAL BACKGROUND
LENNOR is one established brand which aspired by Batik Semar and Lenny
Agustin to manifest their vision to revamp the Indonesian heritage of traditional
cloth. This aspiration is developed in the establishment of PT. Lennor. PT. Lennor
is established on 2009; it is the joint effort between Batik Semar, Lenny Agustin
as the Chief of Fashion Designer and PT. Lennor as the management. Generally,
Lennor is showing the beauty of Indonesian traditional culture by the ethnic
character and the contemporary influence through fashion and lifestyle. On the
other hand, PT. Lennor is also developing the casual clothing line by producing
casual wear with their infamous brand; wAw (What Are You Wearing).
The Vision of PT. Lennor is “To be a new ways and a leader in fashion retail
industry with an ethnic and casual style”, and the Mission is “to introduce the
traditional Indonesian culture with its ethnic character as a result it can be known
worldwide through friendly cooperation among the organization”.
By having two different styles includes ethnic traditional style and casual style.
PT. Lennor determines to build the uniqueness and character of playful designs
on each of them. This is mainly the strong image of PT. Lennor, where the fun
and friendly atmosphere are exposed among the organization itself.
As the collaboration of traditional cloth and contemporary designs, production of
traditional cloth such as Batik and Lurik is primarily handled by Batik Semar.
Nevertheless, the design of the textile is modernized to fits the young and
dynamic lifestyle. This to show that the product of PT. Lennor have their own
distinctive character yet still embrace the authentic ethnicity of Indonesia.
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The establishment of PT. Lennor has been a tremendous success in several main
cities in Indonesia includes ten flagship stores; eight stores for wAw and two for
LENNOR. Currently they are opening one flagship store for wAw in Solo. The line
is mainly sold in medium upscale shopping centers in Jakarta and planning to
expand to other main cities in Indonesia like Surabaya or Bali and may not leave
out to overseas opportunity.
Organization Chart of PT. Lennor
The structure of organization in this report is merely highlighting the
Merchandising division as my job placement. Broadly, the structure organization
of PT. Lennor can be broken down but not limited into the following functions:
Human Resources
Accounting & Finance
Generally handles daily business operation relates to the respective department
within internal office operation.
Merchandising
Generally handles Order Management includes product development, production
process and pricing strategy
Business Development : Marketing & Promotion
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Generally handles all the Marketing and Promotion event includes Internal and
External promotion such as public relation and event, Marketing Strategy for
each brand, collaborate with third parties, event calendar.
Operation
Generally handles daily business operation within Sales & Distribution, Stock
Inventory, and Store Display
JAKARTA OFFICE
Crown Palace Unit D-19Jl. Prof. Dr. Soepomo No. 231Tebet, Jakarta Selatan - 12870, IndonesiaTel +62 21 8370 4541Fax. +62 21 8370 4542
STORE OUTLET
LENNOR
- Central Park, UG FloorJakarta Barat
- Plaza Indonesia, 2nd FloorJakarta Pusat
wAw
- Ciputra Mall, 3rd FloorJl. Let.Jend. S.Parman, Jakarta Barat
- Central Park, 3rd Floor Jl. Let.Jend. S. Parman, Jakarta Barat
- Blok M Plaza, 4th FloorBulungan, Jakarta Selatan
- Kelapa Gading Mall, 2nd FloorKelapa Gading Permai, Jakarta Utara
- Summarecon Mall Serpong, 1st FloorBoulevard Gading Serpong, Tangerang
- Botani Square, 1st FloorJl. Raya Pajajaran, Bogor
- Plaza Ambarukmo, 2nd FloorLaksda Adiscipto, Jogjakarta
- Recent Opening at Solo Square, Solo – Central Java
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LENNOR
LENNOR means “Summer” and perfectly describes Lenny Agustin’s passion in
creating and innovating playful, young and dynamic piece by combining modern
and traditional culture with a touch of ethnic elements.
LENNOR range collections are categorized in Ready to Wear for Men and Women
apparels and non-apparels. The brand has two basic product of Ethnic and
Executive. The Ethnic products mainly focus on the casual design for casual style
or semi formal attire. Moreover, the Executive products are more directed but not
limited to for office attire.
LENNOR positioned the brand in the middle-up level market and penetrated into
Urban Professionals by having the concept of original, ethnic and casual and also
producing limited products. The product of LENNOR ranges at medium to high
level price from IDR 350.000 up to IDR 1 million above.
With average store size by 60 - 80 square metres, LENNOR has opened two
flagship stores at Plaza Indonesia and Central Park in Jakarta and planning for
expansion in other main cities in Indonesia in the near future.
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Store Concept (Courtesy of PT. Lennor)
Product SpecificationThe look of light yellow and black outlets of “LENNOR store” offer fashion items
like sleeveless, shirt, skirt, pants, and dresses. And also offer limited edition of
accessories like bags, necklace, bracelet, and scarf.
Specifically, LENNOR product categorized in several departments can be broken
down as following:
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LENNOR Style (Courtesy of PT. LENNOR)
Apparel Non Apparel
Apparel Ethnic
Women
Top
Sleeveless (Tank Top)
Shirt (Blouse)
Outerwear/Jacket (Bolero)
Dress
Short dress
Long dress
Bottom
Pants
Skirt
Women
Bags
Handbag
Clutch
Pouch
Accessories
Necklace
Bracelet
Brooch
Shawl
Men
Top
Shirt
Outerwear/Jacket
Bottom
Pants
Apparel Executive
Women
Top
Shirt (Blouse
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Outerwear/Jacket (Bolero)
Dress
Short dress
Bottom
Pants
Skirt
Men
Top
Shirt
Size SpecificationThe size variant for all product ranges from Small, Medium, Large to Extra Large.
The measurement of size specification for each and every style is different
depends on the size.
Material of FabricLENNOR products are mainly using woven cloth as outlined below :
- Batik/Jarik (Cotton)
- Lurik (Cotton)
- Canvas
- Denim
- Drill
- Single Jersey Cotton Spandex
98% Cotton, 2% Spandex : Denim Stretch
92% Cotton, 8% Spandex : Tank Top Single Jersey Spandex
- Cotton Poplin
- Ice Wash
Care Instruction100% Cotton, 98% Cotton, 2% Spandex and 92% Cotton, 8% Spandex
Do Not Bleach Medium Ironing
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Do Not Use Washing Machine Hand Wash and
Rinse
Best with Batik Soap
(Lerak)
100% Polyester
Do Not Bleach Cool Ironing
Do Not Use Washing Machine Handwash and
Rinse
Best with Batik Soap
(Lerak)
Price ReferencesApparel
Apparel Ethnic
Women
Top
Sleeveless (Tank Top)
Shirt (Blouse)
Outerwear/Jacket (Bolero)
Dress
Short dress
Long dress
Bottom
Pants
Skirt
: IDR 140.000 –
590.000
: IDR 300.000 –
750.000
: IDR 320.000 –
550.000
: IDR 450.000 –
700.000
: IDR 590.000 –
900.000
: IDR 370.000 –
500.000
: IDR 330.000 – 590.000
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Men
Top
Shirt
Outerwear/Jacket
Bottom
Pants
: IDR 350.000 –
750.000
: IDR 700.000 –
800.000
: IDR 390.000 – 490.000
Apparel Executive
Women
Top
Shirt (Blouse
Outerwear/Jacket (Bolero)
Dress
Short dress
Bottom
Pants
Skirt
: IDR 350.000 –
550.000
: IDR 430.000 –
490.000
: IDR 490.000 –
670.000
: IDR 300.000 –
500.000
: IDR 260.000 –
380.000
Men
Top
Shirt: IDR 350.000 –
500.000
Non Apparel Women
Bags
Handbag, Clutch and Pouch
Accessories
Necklace
Bracelet
Brooch
: IDR 80.000 –
800.000
: IDR 160.000 –
375.000
: IDR 80.000 –
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Shawl
300.000
: IDR 20.000 –
300.000
: IDR 250.000 –
350.000
Sales Promotion EventDuring this season, LENNOR offers free membership by minimum purchase of IDR
1 million, and all members get 10% discount every purchase for one year.
wAw (What Are you Wearing)
wAw range collections are simply classified in Ready to Wear for Men and Women
apparels and non apparels. wAw positioned the market in the casual clothing line
for middle level market and targeted into Young and Urban Professionals. Basic
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and casual concept is segmented in “unisex” products. The brand aims for
women and men with casual lifestyle yet fashionable and always wants to look
young, dynamic yet stays simple.
In the average store size from 40 – 80 square meters, wAw store concept of
contemporary, distinctive and lively wAw is highlighted in the nuance of red,
white and black with the touch of simplicity yet edgy interior design.
At first impression, wAw main concept is basically simple and fun. Within its
simplicity, wAw offers variant bright colors of T-shirt and Polo Shirt to express the
fun and playful impression.
As detail outlined, the target market is broken down as following:
Market segmentation - Demographic
- Male and Female
- Teenagers and Adults (17 years old - above)
- All family size
- All occupation (Urban Professional)
- Income range 1000K and above
Market segmentation – Geographic
- Region : main cities in Indonesia
Market segmentation – Psychosocial
- low middle class
- casual lifestyle
wAw has opened several flagship stores in the middle up class shopping centers
around Jakarta, Serpong, Bogor, Jogjakarta, Solo and planning to be expanded in
other main cities in Indonesia.
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Store Concept of wAw (Courtesy of PT. Lennor)
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Product SpecificationThe product of wAw categorized in Basic and Printed within size specification
from small, medium, large and extra large. Generally the products are outlined as
following:
Apparel
Women and Men
- T-shirt
- Polo Shirt
- Printed T-shirt
- Outerwear (jacket & sweater)
Non Apparel
Women and Men and/or Unisex
- Bags
- Wallets
- Accessories
wAw Hats and Caps (Courtesy of PT. Lennor)
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wAw Accessories(Courtesy of PT. Lennor)
wAw Bowling Bag (Courtesy of PT. Lennor)
Material of FabricWAW clothes are mainly using knitted cloth such as follow:
- Cotton Jersey
- Lacost
- Baby Terry
- Cotton Polyester
Care Instruction
Machine Wash Warm
Non Chlorine Bleach when Needed
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Tumble Dry
Medium Iron
Price References
Apparel
Women
Polo shirt : IDR 130.000 – 190.000
T-shirt (Basic & Printed) : IDR 80.000 – 150.000
Outerwear (Blazer, Jacket, Cropped
Jacket): IDR 230.000 – 320.000
Men
Polo shirt : IDR 100.000 – 150.000
T-shirt (basic & Printed) : IDR 90.000 – 170.000
Non Apparel (Men, Women & Unisex)
Bags, Purse and Pouch
Coin Purse : IDR 30.000 Ladies Pouch : IDR 220.000
Sling Bags Unisex (shoulder bags) : IDR 90.000 – 300.000
Handbag (Net Tote Bags) : IDR 40.000
Tote Bags : IDR 190.000 – 250.000
Backpack : IDR 250.000 Bowling Bag : IDR 280.000
Accessories
Belt : IDR 100.000 – 150.000
Wallet : IDR 80.000 - 190.000
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Hats : IDR 160.000 Caps : IDR 120.000
Sales Promotion EventDuring this season, the event calendar for wAw is conducted through up to 70%
Discount Bazaar, Weekend Surprises and Free Mug for every purchase of Couple
Series T-shirt or Polo Shirt.
RESEARCH ANALYSIS
The study of SWOT Analysis is often used by students and companies to identify
critical areas that need some improvement in order to achieve the specified
objectives. Literally explained, SWOT analysis is a strategic planning method
used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved
in a project or in a business venture. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that
are favorable and unfavorable to achieve that objective. The technique is
credited to Albert Humphrey, who led a convention at Stanford University in the
1960s and 1970s using data from Fortune 500 companies [1].
The following diagram shows how a SWOT analysis fits into a strategic situation
analysis2.
Situation Analysis / \
Internal Analysis External Analysis/ \ / \
Strengths Weaknesses Opportunities Threats|
SWOT Profile
1 Retrieved from http://en.wikipedia.org/wiki/SWOT_analysis2 Retrieved from http://www.netmba.com/strategy/swot/
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Internal Analysis
The internal analysis is described as a comprehensive evaluation of the internal
environment's potential strengths and weaknesses. Factors should be evaluated
across the organization in areas such as:
Company culture
Company image
Organizational structure
Key staff
Access to natural resources
Position on the experience curve
Operational efficiency
Operational capacity
Brand awareness
Market share
Financial resources
Exclusive contracts
Patents and trade secrets
The SWOT analysis summarizes the internal factors of the firm as a list of
strengths and weaknesses.
External Analysis
An opportunity is the chance to introduce a new product or service that can
generate superior returns. Opportunities can arise when changes occur in the
external environment. Many of these changes can be perceived as threats to the
market position of existing products and may necessitate a change in product
specifications or the development of new products in order for the firm to remain
competitive. Changes in the external environment may be related to:
Customers
Competitors
Market trends
Suppliers
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Partners
Social changes
New technology
Economic environment
Political and regulatory environment
The SWOT analysis summarizes the external environmental factors as a list of
opportunities and threats.
The SWOT Profile is generated based on both analyses; internal and external
consequently creates the starting point to set up objective, strategy and
implementation. The SWOT Profile applies interrelated, between each of the
element. For example, the strengths are generated as leverage to achieve the
opportunities and to encounter the threats, while the weaknesses identify the
critical issues should be overcome in order to obtain the opportunities.
Research analysis on PT. Lennor to be focused on the SWOT (Strengths,
Weaknesses, Opportunity and Threats) analysis based on the point of study by
using direct and indirect methods includes Internet research and direct visit to
store outlets of wAw; Blok M Plaza and Central Park, as well as bazaar venue at
Blok M Plaza, Jakarta. Additionally, direct analysis was conducted by direct visit to
LENNOR outlet at Plaza Indonesia, Jakarta.
The research objective is to identify the strengths and weaknesses of the
company in order to enhance the sales promotion and improve product
development which eventually achieve the opportunities and reduce the threats
effectively in PT. Lennor.
Based on the information given previously, the sales promotion for both wAw and
LENNOR respectively is applying fashion show, discount for member, discount
bazaar as well as free merchandise for particular purchase.
SWOT Analysis for PT. Lennor
Internal Analysis
Strengths
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Company and Brand Image
- Good reputation in the marketplace for LENNOR & wAw
- Solid brand image of the Designer and Batik Product
- Modern concept of young and dynamic style for both brand
Price, Product, Promotion and Positioning
- Competitive price for the market
- Strong product icon for casual and youthful style
- Effective market segmentation and sales promotion
- Up to date trend and trendsetter
Weaknesses
Market Penetration
- New comer in the marketplace
- The infusion of Ethnic and modern concept of Batik/traditional
cloth hardly penetrate the conservative market
Product Development
- Product development and production still in the growing phase
- Limited product category in wAw store
- Limited variant for T-Shirt and Polo Shirt (wAw product)
- Limited material of fabric for casual style
External Analysis
Opportunities
Sales Promotion
- Sales and Promotion event at the Shopping Centers such as
Seasonal Sale, Gift Voucher, Gift Card, Discount for preferred
Credit Card
- Boost discount rate and free merchandise
Advertisement and Publicity
- Advertisement or Cover in the newspaper, magazines, radio
and television
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- Advertisement at the Shopping Centers such as Sign Board
- Official Website, Fan book in Facebook
- Publicity by giving sponsorship, fashion show, workshop in
Fashion Festival or School Event, etc.
Merchandising
- Product & Design Development for wAw ; bottoms, dress,
shoes and accessories
- Merchandising Specification; additional material of fabric and
details/creative fabric, broaden product line and size.
- Eco friendly products
Customer Service
- Enhancement customer service
- After sales service
Threats
Competitor
- Modernized/westernized market is more prefer to International
brand
- Competitor with lower price and more discount
- Competitor with more variant of design and faster collection
cycle
Location
- Store location is out of sight by the Shopping Center’s visitors
Product Quality
- Defective quality of product from the suppliers
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SUMMARY
PT. Lennor established on 2009 by the collaboration of infamous Batik producer
and Fashion Designer. PT. Lennor have built distinctive brand of Casual Ethnic as
well as Casual Basic and Print in Ready-to-Wear clothing line. Both brands have
their own strong characteristics yet one solid brand image of youthful and
dynamic style while stays in simplicity. Their vision and mission aims to conserve
the Indonesian heritage of culture and traditional cloth. Morover, their strong
concept of youthful is utterly showed within the organization itself, this creates
the playful, lively and friendly working environment. As a new comer, PT. Lennor
has been showing their successful business by opening their stores in several
main cities in Indonesia and maintaining their strategy by improving the strong
focal point before stepping into the bigger area.
The research of SWOT analysis in PT. Lennor is emphasized by several important
profiles. As a result of internal evaluation of PT. Lennor, the strengths that should
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be maintained and still have some room for improvement are focused on the
marketing mix includes Price, Product, Promotion and Positioning. Moreover,
weaknesses that could take into account in related to the market penetration and
the limitation of product variant can be improved in the product design and
quality. Alternatively, external analysis comprises of opportunities that can be
elevated are Sales Promotion, Advertisement & Publicity, Merchandising &
Product Development, as well as Customer Service while potential threats that
should be minimized are more in the competitor aspect.
Fashion retail industry is a fast pace business which full of dynamic flow and vast
liquid assets. To be successful in this industry, it requires strong focal concept
and solid synergy between the internal and external shareholders as well as
within the organization itself. The greatest challenge of Fashion retail industry is
to build the uniqueness and the soulful character in its collection yet can be well
accepted by the market majority. Overall, the strong dependable shareholders,
effective market research and product and design development are the key
foundations to build the excellent brand image and high-quality product.
APPENDIX
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wAw at Ciputra Mall, Jakarta (Courtesy of PT. Lennor)
wAw at Central Park, Jakarta (Courtesy of PT. Lennor)
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wAw at Blok M Plaza, Jakarta (Courtesy of PT. Lennor)
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Store Display at Blok M Plaza, Jakarta (Courtesy of PT. Lennor)
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wAw Bags and Accessories (Courtesy of PT. Lennor)
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wAw Men’s Tops (Courtesy of PT. Lennor)
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wAw Women’s Tops (Courtesy of PT. Lennor)
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