Penshoppe A Case Analysis Submitted to: Prof. Antonio V. Concepcion College of Business De La Salle University In partial fulfilment of the requirements for Marketing Management Submitted by: GROUP 5 Daza, Emmynol Ibasco, Krissy Nanquil, Winnie Ong, Jong Salazar, Peggy
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Penshoppe
A Case Analysis
Submitted to:
Prof. Antonio V. Concepcion
College of Business
De La Salle University
In partial fulfilment of the requirements for
Marketing Management
Submitted by:
GROUP 5
Daza, Emmynol
Ibasco, Krissy
Nanquil, Winnie
Ong, Jong
Salazar, Peggy
September 5, 2012
Group 5 – Penshoppe
Table of Contents
I. Case Background.............................................................................................................4
II. Statement of the Problem................................................................................................4
III. Objectives........................................................................................................................4
IV. Situational Analysis..........................................................................................................5
a. Industry Analysis...........................................................................................................5
Penshoppe products have entered the international market and this may be evidenced by
their use of foreign celebrities to endorse their products. The brand previously had Mandy
Moore as an endorser in 2001 and recently in 2011, they hired Ed Westwick to be the face of
Group 5 – Penshoppe
the company. In addition, Penshoppe tied up with a New York-based Filipino designer, Robin
Tomas, in launching a new line of men-s and women’s tops.
II. Statement of the Problem
What should Penshoppe do to remain competitive in the local market and eventually in the
international market?
III. Objectives
To focus on promoting Penshoppe products as Philippine made.
To encourage and highlight Filipino designers.
To promote Filipino models as product endorsers.
IV. Situational Analysis
a. Industry Analysis
According to the National Statistics Coordination Board, more than 110 million pesos was
spent in the 4th quarter of 2009 and increased to more than 117 million pesos during the
Group 5 – Penshoppe
same period the next year. This shows a growth rate of around 5.7% which would most
likely continue to grow.
Online Apparel Retailing
An analyst for Euromonitor had commented on the global report on the apparel indusrty that
companies will need to come up “with innovative ways to harness the huge potential of the
internet is the biggest retail challenge facing the apparel industry over the next five years.”
He further stated:
The practice of waiting in line for an available changing room to try on new clothes might one day become a novelty rather than an unavoidable nuisance as apparel internet retailing enters a dynamic new era of growth.
The size of online retailing's incremental growth surge in the past five years, robust as it was, will seem like small fry over the next five years as a new wave of internet investment comes on stream. And at the root of new
65 years and over: 4.3% (male 1,876,805/female 2,471,644) (2011 est.)
Median age
Total Population : 22.9years
Male: 22.4years
female: 23.4 years (2011 est.)
Penshoppe attempts to expand its market to young professionals age 20-35 years old that
belong to socio-economic classes A,B, and C.
Below are the data that Penshoppe may consider in expanding its market in the Philippines:
The size of the country’s labor force in April 2012 continued to expand (2.4% or +953,000) - but at slower pace compared with the same period last year (3.1% or +1.179 million). Specifically, the number of persons in the labor force increased to 40.644 million from 39.691 million. This corresponds to labor force participation rate (LFPR) of 64.7%, upped by 0.5 percentage point in 2012.
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According to a study made by the Bureau of Labor and Statistics, working age population starts at 15 years old and above. The labor force composed of 15 years old and over who were either employed or underemployed.
Penshoppe may introduce product line with its studied price that suits the working population such as economically active and inactive. Under economically active, they may consider the population and salaries of employed as well those unemployed with source of financial expenses so that all market will be served.
Professional SalariesAccording to an online website salary research “pay scale”, as of August 2012, the IT services industry got the highest salary per month of around P34,000, followed by telecommunication and software development at around P30,000, then the BPO at P28,000, and manufacturing and call centers at P25,000, all based in median salary by industry. In this case, most of these industry are working in the city, thus, Penshoppe may top this kind of market.
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e. SWOT Analysis
Strengths
26 years of strong heritage, global design and style
Innovative marketing and advertising strategies
Received multiple awards in the retail and advertising industry
Able to expand from designed shirts to clothing lines and even personal care
products
Tied up with New York-based Filipino designer, Robin Tomas, which sync to
Penshoppe’s core strength which is sophisticated casual wear.
Were able to gain international exposure through hiring of international models
Network of stores has grown to 300 sites, all strategically located in the key areas
nationwide, and one outlet in Xiamen, China.
Offer discounts, sales and other promos
Information corner in stores about the best jeans that will fit on a person based on
their body frame
Weaknesses
Prices must fit to its target market which is Class C.
Unable to tap all Class of C Market
Few local models or celebrities representing a local brand
Some designs may conflict with Oxygen brand (cannibalizing)
Conservative clothing designs
Unable to introduce timely clothing designs
Threats
Hire local models, celebrities or public figures in line with their corporate image
Sponsor school and corporate activities
Online selling (own website)
Direct Selling (agents)
Telemarketing (advertising and selling)
Join online deals (Zalora, Metrodeal, Ebay, etc)
Join exhibits, social events and government activities promoting local brands
Introduce seasonal clothing designs/fashion
Advertise to major local magazines
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Offer surplus on the unsold items to corporations with a cause (a part of sales will be
donated to a non-profit organization)
Create CSR programs in line with company’s operations
Introduce Penshoppe membership card (for every P6,000 accumulated receipt for one year
entitled a customer to be a member for 3 years which will receive 10% discount all regular
items to stores nationwide)
Opportunities
Direct and indirect competitors
New entrants
Tiangge stores nationwide
Increase on taxes, vat, and other government imposed tax
Increase of raw materials (fabric, thread, etc)
Increase on labor cost
Decrease on buyer’s purchasing power
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V. Marketing Framework
The group aims to develop the “Go Local” thinking in buying Penshoppe products, while still
maintaining its global market potency. Competitors were playing the globalization concept
by employing International celebrities to model their apparel collection. A few, perhaps,
were still eyeing local models or even mixing them with seasonal international stars. This
could pay off for a while, but sustainability and ethically speaking, the already tarnishing
colonial thinking of Filipinos may further grow.
With this, the group recommendation centers on going local and going real. The
recommendation targets to fuel further he “Nationalism” thinking of Filipinos – that has been
started up through the existence of smaller ”nation-pride” themed apparel companies such
as “Team Manila” and “Manila Sole”.
Below explains our recommendation through the Five Ms of Advertisement Framework:
Aspects Short Description* Proposed Ads Campaign – Everyday Hero
Mission
This refers to the purpose/objective
behind advertising. The objectives behind advertising are varied
in character.
To promote “being real” and nationalism employing ordinary Filipinos from different industries and local
endorser as models to promote the new line of products.
The everyday hero campaign will personify ordinary Filipinos who are in their own ways strive to make the
nation proud.
Money
This refers to the finance provided for advertising purpose (advertising budget). It means the budget allocation made by
the company for advertising.
A rough estimate (in pesos):- 500,000 for local endorsers (start up models)
- 100,000 for “Ordinary Filipino” endorsers- 500,000 for Start Up photographers and creative
personnel- 10 Million for OOH and in-store/mall posters.
- 400,000 for Social Media Management/Campaign.-----------------------------------------
Total Budget: 11.5 Million pesos running for six months and an additional amount of 5 million pesos to
replenish campaign materials from 6th month to 1st
year.
The above figure does not include the fashion campaigns and events which the company finances
differently.
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Message
Message is provided through the text of advertisement. The message is given through written words, pictures,
slogans and so on.
The following are the slogans published throughout the campaign posters, which features ordinary Filipinos. Kindly refer to the attached photo portfolio for the
visual feel of the campaign:
Manila is your catwalk, Everyday hero
Your smile is your pride,Everyday hero
It's more fun to be with you, Everyday hero
You are what you wear,Everyday hero
Legally fashionable,Everyday hero
Fun is your business,Everyday hero
Driven to succeed,Everyday hero
Media
The advertiser has to take decision about
the media to be used for advertising
purpose.
The campaign will use OOH -billboards, in-store and mall posters to promote the campaign. To support the
campaign , the social media and website of the company will publish pre-production video of the photo
shoot and picture collage of the posters
Measure
Measure relates to the effectiveness of
advertising. An advertiser will like to make evaluation of advertisement in order to judge its
effectiveness
Breakeven from the campaign:
Minimum 38,000 pesos of Net Sales coming from each of the 300 stores nationwide for the first 6 months.
Minimum 16,700 pesos of Net Sales coming from each of the 300 stores nationwide for the next six months 6
months.
*Description was sourced from: http://kalyan-city.blogspot.ca/2010/07/5-ms-of-advertising-advertising.html
Penshoppe’s current marketing activity revolves around their “All Star” campaign. The have
employed internationally known models to endorse their current product lines. Very similar
to their competition, they roster the following US-based artist to define the brands new look:
Leighton Miste , known TV and movie actress
Ian Somerhalder, famous for staring in a well known Vampire-themed TV series.
Mario Maurer, A thai-based teen star known for his movie, First Love (A Little Thing
Called Love).
Zac Efron, a US movie star known for several movie hits and teen-musical shows.
Ed Westwick, known for his sophisticated role in an American TV series.
The company bas been using the All-Star campaign to push their brand name amongst the
celebrity fans. When these artist visited the Philippines for the campaign’s photo session,
several meet-and-greet events were held nationwide. As an entrance fee or pass, audience
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must purchase a certain worth of Penshoppe products. In fact, this coming Sept.29, the
company has launched a meet-and-greet event for their newest model, Zac Efron.
Place
The company has 300 plus stores nationwide, with two store types, in-store (department
stores) and exclusive boutique. Their stores were strategically placed in big malls
throughout the metro.
Customers can also purchase through their online store, shop.penshoppe.com.
The company website also showcases the current collection they have in their store through
an interactive look book. In this way, potential customers can to browse the collection prior
to going to their shops. Additionally, they will also have an idea on how to put clothes
together to achieve a fashionable mix.
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VII. Recommendation
Proposed Marketing Plan
Marketing Goal
Introduce a new campaign and implement a marketing methodology that will continuously
sustain the Penshoppe’s brand awareness to the market. It will involve thorough consumer
engagement and tapping the power of social media.
The new campaign will have a tagline of “Driven to Succeed. Everyday hero”. It will feature
ordinary Filipinos, driven and passionate to succeed in their chosen field. This will make the
product more wearable to the target market. The new campaign will also have a touch of
nationalistic pride, showing that we are proud of our heritage. The campaign will be
launched through traditional advertising and tapping the popularity of social media
marketing to boost brand recall.
Target Market Segment
AB and Upper C market – those who have access to social-media.
Teen Market – Professional
These market segments are up-to-date with the current trends in social media, and can be
influenced by campaigns initiated through tri-media and online marketing.
Marketing Strategy
Product
Price
There will be no different pricing strategy that should be implemented and current pricing
will remain the same. Although, discounts can be implemented when there’s a need to retire
products and clear-out inventories.
Place
Aside from their retail stores, Penshoppe should also consider online retailing since it has
been proven to be a successful endeavour form some brands.. Different types of markets
and industries are growing because of globalization and the introduction of new information
technologies. The key requirements are now centered in quality, speed-to-market, flexibility,
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innovation, networks, customer service and customization. Aside from their own website,
Penshoppe can also create tie-up with online partners such as Zalora to further promote
their products online.
For the next campaign of Penshoppe, this will be launched through the following:
Above the line advertising:
Television and radio commercials
Display advertising (in newspapers, magazines)
Billboard advertising
Below the line advertising:
Internet
Social Media
We’ll also maximize the popularity of social media to launch the brand campaign
Critical Activity
Presence Strategy
Consumer Engagement
Facebook Twitter
Instagram
Consumer will be encouraged to share their pictures wearing Penshoppe products in their day to day activities.
Tagging the Penshoppe page on twitter and instagram, while spreading the hash-tag #everydayheropenshoppe
through twitter. Winning photos will be featured in their FB page
Local Ambasador
WebsiteFacebook
The next ad will feature ordinary Filipinos wearing the brand. These are driven, successful individuals who will be the next brand ambassadors and promote the clothing line
in various activities.
Brand campaign
FacebookTwitter
Penshoppe’s next campaign will feature ordinary Filipinos wearing the brand. The campaign “Driven to succeed.
Everyday Hero” will be launched in Facebook, twitter aside from the traditional tri-media.
Product Segmentation
Local Website
The new segments will be announced and maintain accordingly in its website.
Promotion
Fresh from the success of their Penshoppe “All Stars Campaign” featuring some of the
brightest young stars in Hollywood today, the group recommend that Penshoppe should also
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showcase local endorsers from time to time. Using foreign celebrities to endorse Filipino
products can help the brand and the country in getting recognition on a global scale. A
recent interview with Alex Mendoza, Penshoppe’s brand director, shares the benefits local
brands get from an international endorser.
1. Products are world class quality since international endorsers implies that the brand
has gone global
2. Heightened advertising – foreign endorsers sparks the interest of all socio-economic
classes
3. Gets the attention of the international market towards the brand
4. Expansion – Getting recognizable faces not only adds prestige to the marketing
campaign but it can also help the brand familiar with the untapped market
5. It upgrades the brand image
The group recommend a follow-up campaign entitled “Driven to Succeed. Everyday
Hero,” this time featuring ordinary Filipinos wearing the products. It is in proper moderation
of using both local and international endorsers that would help Penshoppe achieve it global
expansion goals and at the same time show that we are proud of who we are and proud of
where we came from.
Monitoring Techniques
Create a customer service hotline that will facilitate customers feedback, suggestion
and experience. Give incentives or goodwill for their concern and loyalty to the
company.
Monitor sales performance within 6 months.
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Bibliography
Batingal, M (2011). Havainas Aqua Marketing Plan.
GMA News (2008).Penshoppe, Bench cite strong sales, but profits likely to get