RETAIL OPERATIONS ANALYSIS

SUBMITTED TO: PROF. VIKAS KUMAR SUBMITTED BY

DEEPIKA GOYAL PUNIT BHAVSAR

CONTENTS Introduction History Target Market Store format Store Location Layout Music Wall Motifs In-store Display Product line Products Available Styles Fits Price Range Organisational structure Market in India Close Competitors Turnover Marketing strategy Expansion plans References

Introduction Pepe is a premium international brand from London offering fashionable, stylish, trendy and fashionable jeans and casual wear. Pepe is very distinctively positioned, as a brand for the youth with a strong attitude; A brand not only for the youth but also for everyone who is young at heart. Pepe speaks about young, sexy, cool, fashionable, independent, self confident personality who exudes an attitude that says I am what I am. Pepe Jeans London entered the Indian market in 1989 and today is the No.1 international premium denim brand in India. Pepe Jeans is an absolute casual wear brand and sells everything one would associate with casual wear like casual cotton shirts, denim shirts, light-weight jeans, t-shirts, shirts, jackets cotton casual pants and accessories such as bags, caps, belts, wallets, wrist bands etc. Thus Pepe Jeans London has transcended from a jeans brand to a complete lifestyle brand today.

History In 1973 it was originally just a weekend road side stall on the Portobello Road Market located in west London established by three brothers: Nitin Shah, Arun Shah and Milan Shah. Nitin and his three brothers later started their own company Sholemay Ltd trading, as Pepe Jeans. The brand was named "Pepe", because it was a short word that could be written without much trouble. By 1975, the number of market stalls grew to four. One of the stalls was stationed at Kensington Market, which was the selling place of many denim sellers who found success in the jean biz. With the expansion of their business, the brothers opened a Pepe Jeans boutique at Kings Road, London. After that, they opened another boutique at Carnaby Street and a 25,000-feet office and warehouse at the Avonmore Trading Estate. Through the 1980s, the denim company achieved European prominence. Pepe Jeans was launched in India in 1989. The brand is currently the leading player in the premium jeans and casual wear segment, enjoying a market share of more than 25 percent. The songs "Heart and Soul" by T'Pau and "How Soon Is Now?" by The Smiths were used to advertise the brand in 1987 and 1988 respectively. Also the supermodel Kate Moss first advertising campaign was for Pepe Jeans. The brand has launched new lines including kidswear in 2002, as well as the rock-tinged premium denim collection 73, the directional Andy Warhol by Pepe Jeans collection which launched in 2007, and more recently new footwear and eyewear collections. In the early period, there were no sprawling malls, there were no exclusive brand retail outlets, retailers were not updated of the international way to sell a pair of jeans, the infrastructure was poor etc. There were a lot of problems that Pepe Jeans had to deal to make the brand a success in India. Fashion is defined by its ability to evolve, excite and create trends at breakneck speed. Just like the Red Bull Formula 1 team which the brand sponsors, Pepe Jeans London remains at the front of the fashion pack with a winning formula based on its ability to deliver the strongest denim-led fashion in the market Pepe Jeans aims to open 45 more stores by the end of this year. They currently have 155 stores in approximately 100 countries and aim to tale it up to 200 by 2011 and 1,000 multibrand premium outlets.

Target Market In India a very large audience falls under the age group 25 and 35 years respectively and that is the age group Pepe targets. It strongly focuses on youth between 16 to 25 years of age, offering fashionable jeans wear. Pepes positioning has been consistently fashionable and stylish in terms of communication (advertising and promotions). Pepe planned to use the outdoor medium to be highly visible at all strategic locations in the targeted cities.

Store format
Pepe Jeans London has a distinct offering in comparison to its competitors. The brand has positioned itself as an International, fashionable, premium jeans and casual wear brand. Three retail channels, EBOs, large format stores and MBOs, form the base strong distribution network across the country in Tier II and Tier III cities apart from the metros. Each one of these does not compete but complement each other and equally contribute to overall growth. Pepe Jeans London has gone for extensive reach and availability across India. The store in question is an Exclusive outlet of the brand. Store Location The brand outlet is located at C Road, Sardarpura, which is one of the upmarket areas of Jodhpur and has most of the premium brand outlets.

 Layout

 Music Plays hip hop music in store which appeals to the younger generation thus positioning itself as a brand for youth.

Wall Motifs

In-store Display

Product line
Products Available Apparels Shirts Jeans T-shirts Tops Accessories Wallets Belts Napkins Bags Shoes Footwear

Styles Womens Collection The Autumn Winter 2009 Pepe Jeans London womens range has a great mass market appeal. The collection is both for the young, creative girl and the more sophisticated, fashion conscious woman. The collection looks back on the fashion movements of the 1950s, 1960s and the 1970s for inspiration, with London Chic and the area of Pepes heritage remaining the main point of reference for fashion cool influence. Throughout, Pepe Jeans feminises branded prints and embroidered motifs that have for 35 years been a recognisable symbol of quality, premium clothing. Seventy Three gives the customer a classic rock chic look. Blacks and cool greys are the main tones contrasted against strong tones of white and purple. Edgy, cool, confident all could be words used to describe the person who dresses the 73 way. Their denim heritage is also a very important aspect of the Autumn Winter 2009 collection, with a wide range of fits, washes and styles that have been developed to create looks with collections and to appeal to a broader range of

customers needs. We also understand the needs of the Irish woman and have developed specific styles to cater to for those needs. Mens Collection The Autumn Winter 2009 Pepe Jeans London mens range is based on a classic denim feel give a number of different twists to create different looks that will appeal to a classic denim customer and a more fashion forward customer. The collection looks back the 50s and 60s, taking classic college influences from America as well as taking a completely opposite look from the motorcar mad rebel without a cause. The collection is can be worn as a classic cool casual denim day look or as a stylist edgy fashion forward line. Denim Bottoms are part of Pepes Heritage It still has the main line, Pepe Jeans London, which contains the core styles as well as the more fashion inspired pieces and of course the market specific styles such as the Carnaby Bootcut. 73 is a more fashion forward line which is inspired by Londons more fashionable areas such as Carnaby Street, Portobello Road and Camden. The mens denim line is comfortable, clean, concise and easy to wear.

Fits Mens Vapour London Comfort Ladies Gima Holoborme Bond Frisky

 Price Range Product Jeans Shirts Shoes Bags Price (Rs) 1599 - 2599 1199 - 1999 7999 & above 899/-

Organisational structure

Market in India The total size of the denim market is estimated to be at Rs 2000 crore. The denim market in India is growing at the rate of 10 15 per cent per year. Pepe Jeans contributes around 25 per cent in the premium jeans and casual wear market.

Close Competitors Any youth brand which is offering premium quality jeans or casual wear product line in the middle and premium segment is a competition to Pepe Jeans like Lee, Wrangler, Jack n Jones, Levis etc.

Turnover The annual turnover of the company, currently, is Rs 350 crore; and hopes to reach a sizeable Rs 500 crore by the next fiscal.

Marketing strategy Its present strategy is to strongly focus on innovation and quality. Pepe Jeans believe that it has to be the right blend of both fabric and style to create the perfect product. Hence, focus most certainly is both. In terms of marketing communications Pepe Jeans aims to continue working on a 360 approach thus involving both above the line and below the line activities. Pepe Jeans advertises its brand campaigns heavily through hoardings & billboards across the country and most of the top fashion magazines. This medium helps to create brand imagery by associating ourselves with the fashion space and being seen around the top international fashion brands. In order to reach a larger audience Pepe Jeans also advertises in leading English dailies across major cities. All these aim at creating the visibility, top of the mind recall with the end consumers. These above the line activities are strongly backed by point of sales material, innovative window displays and larger than life visual images in the Pepe Jeans stores, reinforcing the communication received by the consumers

through above the line initiatives. This also increases the consumer interaction with the brand and its product line.

Expansion plans Pepe is looking forward to having around 250 exclusive brand outlets by 2011 and also plan to set up stores in towns and cities with a population of above 3 lakh people.

References

http://retail.franchiseindia.com/interviews/established/Pepe-Jeans-Hasaround-25-market-share-in-India-141/

http://en.wikipedia.org/wiki/Pepe_Jeans

http://www.fibre2fashion.com/face2face/pepe-jeans-london/chetan-shah.asp

http://www.fibre2fashion.com/news/company-news/pepejeans/newsdetails.aspx?news_id=36665

http://www.fibre2fashion.com/news/company-news/pepejeans/newsdetails.aspx?news_id=8585

http://www.progress.com/progress_software/docs/pepe_jeans.pdf

http://www.scribd.com/doc/18793408/Pepe-Brand-Identity-Prism