Professional Documents
Culture Documents
Market Review:
Market Trends & Opportunities
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
awareness that has been spread by the globalization. People have become
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
blooming and more international chain have opened up their stores. A recent
the people of Pakistan lets them afford such a life style, as we have a wide
1
http://ajc.sagepub.com/cgi/content/abstract/2/2/137
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
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
prime mortgage crises in the U.S, as a result was which the U.S. Dollar
phenomenal hike in oil and food prices, sent shock waves around the world,
2
http://www.sdpi.org/help/research_and_news_bulletin/jan_feb_06/textiles_and_clothing.htm
3
http://www.epb.gov.pk/docs/others/trade_policy_initiative_2008-09.pdf
like wheat and sugar placed huge pressure on our balance of payment
value-added product among the textile group, but the price we are getting
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
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
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
4
http://www.pide.org.pk/Research/Report180.pdf
Regulations in your industry
• National Business Environment
side. The context of firm strategy & rivalry can be described as highly
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
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
5
http://www.smeda.org/business-development/sector-briefs.html
became more significant as compared to textiles. This sector lies at the
pinnacle of the textile value chain, which begins with cotton and synthetic
source: isc.hbs6
6
http://www.isc.hbs.edu/pdf/Student_Projects/Pakistan_TextileCluster_2007.pdf
Environmental
• what the government says and what market say
Pakistan is one of the emerging economies of the world. It has shown great
sectors. The services sector alone has continued to perform strongly and has
come from the services sector, which has emerged as a growth powerhouse
over the past few years. The commodity producing sectors (agriculture and
7
http://www.smeda.org/downloads/AppendixI-TradeinServices.pdf
the remaining three-fifths of the 2006-07 real GDP growth of 7.0%.
the remaining 59.8%, or 4.2 percentage points, came from the services
percentage points or 22.7%. The services sector has contributed the bulk of
8
http://www.smeda.org/downloads/AppendixI-TradeinServices.pdf
Social
• Related to your industry
This sector is highly labor-intensive and this higher growth may have
to the sector.
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
• Lack of standardization
very early stage and there are no strong traditions to support customers
quality standards.
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
• Deficiency of trained HR
Apart from a few organized sub sectors, like banking, medicine and
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
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
women in the society. The firm will have to keep in mind that too because not
• Westernization
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
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
The textile machinery used in Pakistan is imported mainly from countries like
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
them retain, analyze and forecast the inventory in store and demand that is
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
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:
fashion/home recently
magazines married, or
started a late
family, or kids
are already
married or
reached the
adult)
male/female
Latest clothes Students, Following the Status Urbanite,
happenings, 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
The 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 SUBSTITUES
In case of the retail industry that we are analyzing the threat of substitute can be
• 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
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.
The 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.
The 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
The 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
On the other hand in case of the branded stores the bargaining power of buyers is
low because
• Less alternatives
• Differentiated product
COMPETITOR ANALYSIS:
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
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
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,
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
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
they also wanted to establish a brand that could carter to the needs and
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
fashion scene. Our styles identify with the contemporary tastes, colors
wardrobe. Our garments are designed in step with global fashions and in
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
Ideas Brand name, sub Too much under the A new niche Competition
9
http://www.bareeze.com/demo/CompanyProfile.php
outlet)
Strong
Management
Low Employee
Turnout
Technological
Chenab group
Elegant and
Creative Designs
in the readymade
wear
Bareeze Poor customer
Strong brand To diversify its Direct indirect
service,
name portfolio being a competitors (aroshi,
No Tvcs yet
Strong market very strong brand wrinkle, batools,
introduction of image
Variety in the
bareeze sweaters Political instability in
material used that
To be the first mover the country
include silk,
in coming up with a Inflation causing
chiffon, organza
TVC increase in cost of
and velvet.
production
Building brands of
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.
Accessibility due
everywhere
IDEAS
• STRENGTHS:
• People across the country trust the brand Gul Ahmed for it quality, novelty
economic classes and recognizing shopping from good branded stores and
• WEAKNESS:
• 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
• THREATS:
• Political Instability
• 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
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
The fact that they are offering personalization on some of their products
makes them different from their competitors. For instance they are offering
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
concept but they don’t have many competitors in the market as the market
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
• WEAKNESS:
There are a few weaknesses that Ideas has to take into consideration and
One of the major weaknesses is that they are overpriced for the variety they
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
have exclusive distribution for their stores. The products offered there are
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
Their outlets in different cities have different ways of displays i.e. there is no
their competitors who have a very clear display and each section is
• OPPORTUNITIES:
One of the major opportunities that await Ideas is the fact that they can
• 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.
into cosmetics market. As they are a reliable brand and offering a home
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
• THREATS:
• 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
Secondly, the rising costs of production that includes the costs from
materials to all the overhead costs are making it difficult for the textiles
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
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
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
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
the different types of product meant for different target market. This is an
synonymous with “one stop shop”. Therefore the group unanimously decided
that the most weight should be given to this and we finalized at 40%.
in each of the offerings. This innovation should be visibly there. For e.g. how
this factor the lowest weight of 25% eyeing from the perspective of an
s One ze
e ht ht ht
logo 4 0.35 1.4 5 0.35 1 3 0.35 1
.75 .05
range
.25 .75
Total 3 Total 4 total 2.6
.85 .35
Idea takes the lead in terms of innovation of its products. The designs are
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
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
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
Advertisement:
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.
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
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
s ne ze
VERBAL scor weig score weig score weig
e ht ht ht
tagline 4 0.2 0.8 5 0.2 1 1 0.2 0.2
.05 .75
mouth .35
total 3 Total 4.1 total 3.85
.65
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
EXPERIANTIAL:
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
importance.
Customer care:
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
Quality/ Durability:
preconceived about, but he actually understands it after the trial of the product.
30%.
s one ze
EXPERIANTI scor weig score weig score weig
AL e ht ht ht
store 4 0.4 1.6 5 0.4 2 3 0.4 1.2
outlook
care
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
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
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
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.
Channel 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
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
Waiting time
It 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
Location
Getting the product in the right place and time is important. Arranging for
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
Product variety
The 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
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;
○ Use of satin trims, piping, pleating and embroidery enhance the luxury
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
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
Ideas extensive range of towels, robes, shower curtains, curtain hooks, bathroom
sets and accessories are an example of how well the companies knows the
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
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
seat” if their physical existence is in the literal meanings of the names? Very
14
http://www.ideas.com.pk/html/bath.htm
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
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
4.
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
15
http://www.ideas.com.pk/html/monogramming_embroidry.htm
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
operating activities
329,39
1-Mar-07
4
205,02
1-Sep-07
8
1-Dec-07 20,433
-853,74
1-Mar-08
5
-1,132,
1-Sep-08
270
-451,26
1-Dec-08
4
Forecasted
-209,4
1-Mar-09
28
-655,1
1-Sep-09
94
-812,4
1-Dec-09
26
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
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
“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
service with courteous, informed and well-groomed sales consultants. Our aim is to
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)
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
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
Y=Y°×(1+G)t
11650=5448(1+G)6
116505448=(1+G)6
log2.13=log(1+G)6
0.7566= ln(1+G)
G=0.134 or 13.4%
This shows significant growth rate over the years from 2003 till end of 2008.
Product Strategy
Target Market & customers
PLACEMENT
Ideas 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
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
PROMOTION
• 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
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
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
• Re-using water
• Re-using energy
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
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;
sub brands come to much under the influence of the umbrella brand to the
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.
PRICE
The pricing strategy for any brand is a bit high which is also justified being a brand.
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
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
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
• R&D support has not been extended by the Government beyond June 30, 2008
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
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
Quarterly Deliverables
In this regards, IDEAS need to improvise its home improvement product category.
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
More 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
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