Padini FULL Assignment Padini PDF

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Table of Contents 1 Introduction (Amirul) ....................................................................................................... 1 Padini’s Core Business............................................................................................ 1 Padini’s Product Portfolio............

Description

Table of Contents 1.0

Introduction (Amirul).......................................................................................................1 1.1

Padini’s Core Business............................................................................................3

1.2

Padini’s Product Portfolio.......................................................................................3

1.3

Padini’s Management Team....................................................................................3

1.4

Padini’s Organization Structure...............................................................................4

1.5

Padini’s Target Marketing.......................................................................................4

2.0

Product Description (Munawwarah)...............................................................................6

3.0

Price Strategies (Tong Shi Yi)...........................................................................................9

4.0

Distribution Strategies (Ching Ching, Jia Qi)...............................................................10

5.0

Promotional Strategies (Hillary, Atikah, Norrohayu)...................................................12 5.1

Advertisement.......................................................................................................12

5.2

Sales Promotion....................................................................................................13

5.3

Public Relation......................................................................................................13

5.4

Direct Marketing...................................................................................................14

6.0

Competitors Analysis (Nabila)........................................................................................15

7.0

Problems and Solution (Syamimi)..................................................................................17

8.0

7.1

Poor Advertising Strategies...................................................................................17

7.1

Challenge of Strongest Competitors......................................................................18

Conclusion ( Nurul, Ng Lay Chin).................................................................................19

1.0

Introduction (Amirul) Padini Holdings Berhad is a Malaysian-based investment holding company. This

company has setup its operation in Malaysia’s apparel industry, manufacturing and trending. Its product line includes garments for men, women and children. Padini Holdings Berhad headquartered in Hicom Glenmarie Industrial Park, Shah Alam. Padini Holdings Berhad began operations as Hwayo Manufacturers Company, a sole proprietorship manufacturing ladies garments and wholesaling the finished products to departmental stores in 1971. This company was founded by the group’s managing director Yong Pang Chuan. The breakthrough came when Yong realized that taking his company to the next level would develop a strong brand identity. Hence, this company entered the retail industry in 1975 with company’s pioneer brand “Padini”. The mission of this company is to exceed customer’s expectations and their brand’s promise while their vision is to be the best fashion company ever. From the beginning, Padini was an affordable mass-market office-wear brand which the market then lacked. However, by early 1981, Padini’s brand “VINCCI” was established to market ladies shoes, bags, belts and other accessories. Besides, Padini also launched children wear under the MIKI Kids brand in 1987. In 1990, the SEED and ROPÉ labels were created to ensure the company is able to develop successfully. By early 1991, Home Stores Sdn.Bhd (50202-A) was established to hold all the companies involved in the Group’s retail, wholesale and manufacturing businesses. A year later, Home Stores Sdn.Bhd (50202-A) was subsequently renamed to Padini Holdings Sdn.Bhd (50202-A). Since then, the name of Padini Company became well-known to the public. Furthermore, many brands such as Miki, Seed, ROPE, P&Co., PDI, Padini Authentics, Brands Outlet and Tizio labels were launched in the following decades. In 1993, Padini Authentics was launched to market quality casual wear. 5 years later, Padini Holdings Sdn Bhd was converted to a public company limited by shares and adopted the name Padini Holdings Berhad (1998) and soon listed on the Second Board of the Kuala Lumpur Stock Exchange that now called as Bursa Saham. In 1999, P&CO and PDI were created to market a label for the individualistic fashionista. In addition, PDI was the perfect style companion for all walks of life. Also, the first of the Group’s multi1

brand shops, the Padini Shop was opened in City Square of Johor Bahru, Johor. The 11,000 sqft store showcased merchandise from Padini, SEED, PDI, Vincci, and P&Co. After that, Vincci was launhed the first foreign store in Brunei by early 2000. Vincci also managed to entered the Thailand market in 2001. Two years later, Vincci was opened the first store in Philippines and Saudi Arabi. In 2004, Padini Holdings was transferred of listing and quotation into the Main Board of Kuala Lumpur Stock Exchange (now the Main Market of Bursa Malaysia). The development of the company continues with the success of the Vincci brand across the international market such as Indonesia, UAE and Combodia in 2005. In December 2006, Padini Holdings Berhad had launched a new brand to the market which is called as “Brands Outlet”. Brands Outlet also known as budget store because it offers designer clothes at an affordable price. The Vincci also managed to penetrate the global market in Oman (2007), Syria (2009), Qatar and Pakistan (2010), Bahrain, Egypt and Morocco (2011), and also Myanmar (2012). Besides, a new brand “Tizio” was launched in November 2012. The group also has grown its regional presence by expanding into Cambodia with the first store in Phnom Penh. Vincci ventured into Thailand with in change of ownership model by having the first store in Bangkok, Thailand. The group expands its presence abroad by adding more stores in Middle East, South East Asia and North Africa to further strengthen its brand presence in these regions. In 2019, Padini Holdings Berhad was awarded at the Malaysia’s Most Valuable Brand and Putra Brand Awards, respectively. Today, Padini Holdings Berhad have grown to become one of the country’s prominent fashion companies with two multi-brand labels carrying their own brands which is Padini Concept Store with eight brands (Padini, Seed, Padini Authentics, PDI, P&Co, Miki, Vincci and Vincci Accessories) and Brands Outlet. In total, they have over 140 stores in Malaysia and multiple markets around the world such as Cambodia, Indonesia, Thailand, Bharain, Brunei, Oman, Qatar and United Arab Emirates (UAE). In a nutshell, Padini Holdings Berhad has over 41 years under its belt and is still going strong until now.

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1.1

Padini’s Core Business Padini Holdings Berhad sells apparel and accessories with overwhelming

domestic presence as well as exposure in high end, mid-end and value clothing segments for all age group.

1.2

Padini’s Product Portfolio Padini Holdings Berhad provide a wide range of products to its customers. It has

various colours and sizes of clothes for both male and female. It also has different types of jeans cutting such as loose fit, boot cut, skinny fit and straight fir that cater for different niche of customers. It has T-shirts of various kinds for men and also blouses and sleeveless designs for female. The collections in the store are recording to the seasons, Spring/Summer or Fall/Holiday. Customers can anticipate for new designs on the months of February and August. Furthermore, Padini provide sizes vary from S to XL. 1.3

Padini’s Management Team Chairman Datuk Dr. Abdullah Bin Abdul Rahman Independent Non-Executive Director

Director Yong Pang Chaun Group Managing Director

Director Chan Kwai Heng Executive Director

Director Cheong Chung Yet Executive Director

Director Chong Chin Lin Executive Director

Director Yong Lai Wah Executive Director

Director Sahid Bin Mohamed Yasin Executive Director

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1.4 Padini’s Organization Structure The founding Yong Family 44%

Padini Holdings Berhad

Padini Corporation Sdn Bhd

Padini International Ltd (HK)

Padini Dot Com Sdn Bhd

1.5

Vincci Ladies Specialties Centre Sdn Bhd

SEED Corporation Sdn Bhd

Yee Fung Hong Sdn Bhd

MikiHouse Children Wear Sdn Bhd

Vincci Holdings Sdn Bhd

The New World Garment Manufacturers Sdn Bhd

Padini’s Target Marketing Padini is mainly an integrated operation that controls its products – Fahion wear

and accessories – from concept stage to manufacturing, merchandising and image marketing. Each Brand represents a fashion philosophy. Each philosophy covers a comprehensive range of products aimed at a targeted consumer. Brand image is strongly backep up by real value such as quality, functionality and price. Consumer Goods are final goods that are brought from retail stores to satisfy the needs and wants to customers. Products of Padini falls under consumer product which categorized as shopping products. Padini itself has other alternatives brands under it. There are Padini, SEED, PDI, Padini Authentic, P & Co., Miki Kids, and VINCCI.

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Padini provides the essential working lifestyle for the modern working man and women. This brand is focuses on the formal wear and centralize customers base for workers. Padini also has launched out several of tie, belt, shirt and coat. The essential of PDI is to emphasis the casual stylish that can be accepted in any occasion. It’s purpose to let any guy or girl to get a style fix among the fashion-current jeans, T-shirts, jackets, casual basic-T, belt, socks, scarf and even accessories in a shopper-friendly setting. Next, SEED is the confidence of classic and casual plus a refreshing design. SEED emphasize the best of both designs for women, men and even hip kids. The purpose is stand-out style. SEED is focus on urban office-wear for the masses. Padini Authentics is more on casually yours. This brand focus their styleon quality casual wear. Its targets the teenager segment of the market. P&Co. is focus on female market and launched all girl skirt, necklace and also hot pants. On the sam track where they run ahead in fashions brave new ideas. Miki Kids take the message of fun in fashion to every place and occasion. Clothes design with energetic ideas and cheerful colours to charge up every youngster. Miki Kids are designed for 1 to 11 years old infants. Miki Maternity is designed for fashionable mums-to-be. Miki Maternity has sold all the shirt and dress that suit for the pregnant women at the same time stabd out-style. Lastly, the look of Vincci fun and fashionable, the emphasis is affordable. From head turning hair accessories to trendsetting footwear, must-have handbags to eye catching glasses and fashion-clinching belts. In addition, Vincci accessories carries one of the most extensive lines of accessories from necklaces, bangles, rings and earrings to belts, sunglasess and fashion-clinching belts.

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2.0

Product Description (Munawwarah)

One of the top notch Padini’s product categories that often records high sales among the customers is bag and accessories. Under the bag and accessories category is a clutch bag known by the name as “Tote Bag With Pouch". This high end product is currently under the label of Vincci in Padini. The product is launched during 2018. Since the product is purposely launch to attract women, the design is full of elegance, feminine vibes and perfectly compliment their high class status. The benefit of adoning the product is, it will make the user looks attractive. This is because it is created with a cute pink color which highlight the feminine style of a woman. Even though pink always associated with childish nature, the addition of gold color at the end of the bag’s strap actually make the user looks less childish. It added the rich, simplicity, elegance and classy themes to the bag which will make the user’s charm stand out the most while using the bag. The bag contains one main compartment and comes in handy with a zipper pouch that works as mini storage and second item. Since the bag is more suitable to use at formal events or working place, the pouch can be used during taking a stroll at the park. It describes the 2 in 1 concept which allow user to make choice to suit her preferal style when matching clothes. Plus, the pouch size is not that small, unlike those typical pouches that only fit a purse. It talks a lot about the reason behind the pricing which is around RM 139 (in http//url.Zalora.shoppingonline.com) as the bag also is made of polyurethane. With a high quality ingredient, the designer designs it with metal accent tassels.

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The bag is divided into three sizes which is the largest bag, the handle drop bag and the smallest bag. The measurement for the largest bag is 42cm (Length) x 27.5cm (Height) x 12cm (Width). The bag could be said as a handful one since the dimensions are quite big, but not too big to hold and is very convinience to the user. The second one is around 25cm and the third one, which is the smallest is around 33cm (Length) x 24cm (Height) x 12cm (Width). This offer is enough to satisfy different users who have different demands in head. Besides that, because it is a famous label under Padini, the bag is being sold with a warranty. Padini would offer 21 days free exchanges from invoice date for the buyer who are not satisfied with its product (normal priced items only). However, the product must be in original condition, unworn, unwashed or defective with all original tags attached to the product and any related accessories or instruction boooklets included. Exchange is strictly subject to stocks availability. Exchange policy is granted one time only for one product. The after sale service provided for the bag is only if the product is return without faulty or damage, Padini will return the product to the buyer at her costs and expense. Other than that, Padini is not responsible for any problem. The SWOT Analysis contains four elements which are Strenghts, Weaknesses, Opportunities and Threats. The strengths factor for this product is the Padini’s marketing strategies. The marketing strategies focus on promoting the product through online stores and big shopping complexes around the world. Today, the world’s technology development has reached its peak. People now can access through online stores without having to go out of their house. This lead the aggressive marketing from Padini by putting their product on the well known online stores such as Zalora, Shoppee and Lazada. Just click on the stores’ website about Vincci from Padini and a long list of products display will appear right before the buyer. Thus, people can choose anything that they wish to buy from Padini via online platform. Even though people did not come to their physical stores, Padini will still gain profits from the online purchases as money flows every second. That’s how the bag is bought from the stores too.

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The weaknesses factor for this product is lack of reputation. Padini has not established itself as worldy top choice company. This is because Padini is still growing and expanding its wings to the South and East regions. It takes a long time to expand the business as the foreign societies need to know the company first before buying its products. Once it is known to the public, the reputation will grow. Many people will consider to buy Padini’s products. As for the bag, it is just a normal released product. So the bag did not get as much attention as it deserved. This make people barely recognize its own existence as they only know the other top collections from Padini. The opportunities factor for this product is the product packaging. As the new era is coming, people would prefer the less complex packaging of a product. People would likely to be attracted toward a simple yet attractive packaging. The bag design and packaging eventually fulfil the needs of these people. With a simple design and full of packaged product, the product itself attracts the buyer. It would not be a shocking thing even though the price of the product is high as the packaging give people the sense of simplicity yet is compact. That’s why Padini is able to gain customers as Padini serves the needs of its customers preferences. The threats factor for this product is competitive market. As the market is expanding, more giants companies are rising. Besides Padini, there are also companies that is competiting together in the market such as Giordano, Parkson and H&M Outlets. These companies also are selling the same products just like Padini. The competitive market makes the marketing become challenging as Padini need to encounter some strong competitors while keeping the customers in its grasp. Padini need to come out with various new ideas or products as to fulfil the customers needs and stay relevant in the industry. Worst comes worst, if they are unable to keep the pace with the changing market demands, Padini will be left out by the customers. The profits might becomes low as the market requires only the most capable one, the one that would be able to stay high on the throne.

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3.0

Price Strategies (Tong Shi Yi) Price is the value that is put to a product or service and is the result of a complex

set of calculations, research and understanding and risk-taking ability. Pricing are one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. Pricing is difficult and must reflect supply and demand relationship. Pricing for a product too high or too low could mean a loss of sales for the organization. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors. In this point, Padini Holdings Berhad penetrate the market deeply. All brands under Padini are low cost pricing and more focus on the middle class of customer base. All Padini product price are low and affordable rather than the other Padini’s competitors. This is because there are more middle class of customer base compare to high consumption of customer base. Furthermore, Padini Holdings Berhad also offer discount and rebate for its product to their customers. For example, Padini Holdings Berhad had applies promotional pricing by having “Padini Group Fair” which known as Mega Carnival Sales will up to 70% discount. Vincci, one of the Padini’s brand also had applies a promotion in this year such as “Padini Vincci Pop-Up Store Promotion” and the price is lower as RM19. Moreover, a specific pricing strategies also utilized by Padini company. There are different types of price strategies which is penetration pricing srategy, economy pricing strategy, price skimming strategy, psychological pricing strategy, product bundle pricing strategy, geographical pricing strategy, promotional pricing strategy and premium pricing strategy. The price strategies that adopted by Padini Holdings Berhad was geographical pricing strategy and promotional pricing strategy. Geographical pricing strategy is used for customers in different parts of the country or the world. Geo...