Executive Conclusion:
ChenOne is functioning its stores in sixteen locations around Pakistan. It is the market innovator in its category. In very brief span of time it includes occupied a unique place in minds of the consumers. It generally does not have any perfect rival in its varied field but the threat of competition develops in individual categories. It really is known for its quality products all over for which it charges high prices. It has its logistics which give an edge in the distribution. It offers occupied strong position on the market because of its effective and effective positioning, product strategy, costs, and syndication and communication strategies.
Vision:
"To be a competitive and customer targeted organization with carrying on commitment to superiority and benchmarks. "
Mission Statement:
To be the business enterprise house of first choice for customers.
To be a change innovator.
To produce impressive, relevant and affordable products.
Setting and maintaining high requirements.
To earn income by achieving most effective level of creation by using status of the art
technologies.
To provide ideal working conditions to employees and also to be mindful in their career
planning and pay back them according to their skill and responsibility.
To meet sociable and cultural responsibilities towards the world being truly a patriotic and conscientious corporate and business citizens.
Company Advantages:
Chenab Group:
It is one of Pakistan's leading textile group and one of the most significant exporters of home textile products from Pakistan. Chenab's control unit is known as one of the better in the united states with a whole processing range. It had been proven in 1974 by Mian M. Latif the Chairman, later joined up with by Mian Javed Iqbal and Mian M. Naeem.
Chen One:
It is a chain of fashion stores owned by Chenab group. Its main products that it includes include Home Textile, Garments, Ft. Wear and Furniture. Its textile products not only fulfill local demand but are also exported to several other countries. Massive amount domestically produced superior quality materials and apparel by Chenab Groupings and its suppliers provided the foundation for huge retail and export business.
Current Marketing Situation:
Currently ChenOne is enjoying a palace within the minds of its marketplace that support it maintain a distinctive palace among its competition. ChenOne is the market head in its category die to its superior quality, a well developed brand name, marketing efforts that strike its target portion rightly and consistently changing the merchandise designs and features to meet up with the needs and requirements of its valuable strong customers. This all has helped ChenOne to get a differentiated image on the market that has it a prestige symbol.
Market Description:
ChenOne was the first store of its kind in Pakistan offering the entire range of Fashion clothing & foot wear, Bed Linen, Kitchen Accessories and Furniture. ChenOne targets upper midsection and elite course. Its market includes people who requires best quality and trendy lifestyle plus they have the buying capacity to pay little more to obtain these superior quality products.
In garments Chenab group provides almost all of the products but other products like kitchen accessories and footwear are generally brought in to be sure that they deliver their customers the best product.
ChenOne is the sole distributer of "PrettyFit" in Pakistan. Prettyfit offers a full collection of Shoes and Handbags for ladies.
Most of the kitchen accessories are also imported. For instance in kitchen crockery they feature limited but special designer products which are not available in other stores.
In furniture Chen One provides the latest designs and movements in its products that create a recognized place for it in this category. The neighborhood craftsmen and suppliers provide low priced products but quality of products is very cheap, designs are either totally obsolete or just comes after market trends which have been there for a sometime. But ChenOne offers latest designs considering both local and international developments.
Top fashion designers generally have a few stores in Karachi and Lahore, unlike ChenOne which functions in sixteen locations and still increasing through which they really want to target their potential customers nationwide. ChenOne has its own Designing clubs that constitute of creative imagination from the main fashion institutes. They have also deals with leading Coming up with Teams within and beyond your country so that they can keep their distinguished image in future as well.
Product Review:
ChenOne place their products in three main categories
Home
Garments
PrettyFit
Home:
In home category they have got Furniture, Accessories and Bed linen.
Furniture and Bed linen is manufactured in Pakistan. In Accessories they feature kitchen and home accessories. Most of these accessories are brought in but some of them are locally produced. These local Home accessories are largely people which mirror local ethnic and tendencies.
Garments:
Garments have three categories
Men's wear
Kids wear
Ladies wear
In garments they offer a complete range from formal to semi formal and everyday clothing and accessories.
Besides prepared to wear garments for ladies ChenOne in addition has introduced its backyard "PARSA". A lot of the Garments and Textiles are supplied by the Chenab group but Men's suits, ties, belts etc are a few products which can be imported. No bargain is made on quality of imported products and it's really made sure that the customers get cost effective for their money.
PrettyFit:
Prettyfit is comes from Singapore, started out its procedure in 1994. In an exceedingly short course of time PrettyFit established a strong foothold as quality sneaker retailers.
Prettyfit offers a total assortment of fun, informal, semiformal and formal shoes for the females. PrettyFit outlet stores are in more than 20 countries across the world. From the pride of ChenOne that the 100% leather products of the renowned, trendy and stylish brand can be purchased in Pakistan only at its stores. PrettyFit provides unique styles that are not available somewhere else in Pakistan.
Channels and Logistics Review:
As stated early on ChenOne is a subsidiary of Chenab group. ChenOne was made so that their textiles and apparel can directly reach the buyer. A lot of the products are given by Chenab group in support of those products which can not be produced at the finest quality in the country are brought in.
ChenOne has its logistics department. Because they have 16 stores operating in different parts of the country they need a very fast and efficient logistics system to fulfill their needs. Their logistic system makes certain that their every product reaches its destination on time.
They are suffering from a very effective system for sorting out the demand of individual stores and full filling up the automatically produced order as the store extends to a specified amount of individual product's stock. It really is ensured that enough time between making the orders and delivering the merchandise don't exceeds four day time period. The main stock is placed at Faisalabad from where in fact the supplies are created to all stores countrywide. Faisalabad is defined as the centre for stock because thirteen of the stores are in Faisalabad which is economic to create centre there.
Furniture is the most difficult product in conditions of transport which takes plenty of space and requires look after vehicles. For furniture purchases they have a maximum time frame of 7 days for delivering products after order is put up. All of the imports are first transferred to Faisalabad and following that supplied to their stores.
COMPETTIVE Evaluation:
ChenOne is one of its types of stores in Pakistan. It offers full selection of clothing and home products and accessories. It doesn't have any competitor in its business category. ChenOne don't enjoy monopoly in market. They have product, category sensible competitors in the country.
Following are its opponents in respective product categories:
Brand
Product Category
Price Range
Intensity
Habbit
Furniture
Moderate High-High
Red
Interwood
Furniture
Moderate High-High
Black
Cross Roads
Casual Clothing
Moderate High-High
Red
Outfitters
Casual Clothing
Moderate High-High
Red
Fifth Avenue
Casual Clothing
Moderate High-High
Blue
Shirt & Tie
Formal Clothing
Moderate High-High
Red
Dinners
Formal Clothing
Moderate High-High
Blue
Men's Store
Formal Clothing
High
Red
Stone Age
Casual Clothing
Moderate High-High
Red
Cotton & Cotton
Formal Clothing
Moderate High-High
Red
Cambridge
Formal Clothing
Moderate High-High
Blue
Bonanza
Formal Clothing
Moderate High-High
Blue
Oxford
Formal Clothing
Moderate High-High
Blue
Ideas
Clothing
Moderate High-High
Red
Bareeze
Fabric
Moderate High-High
Red
V9
Fabric
Moderate High-High
Red
Funk Asia
Women Clothing
Moderate High-High
Blue
Stylo
Foot Wear
Low-Moderate High
Black
Soul
Foot Wear
Moderate High-High
Red
Borjan
Foot Wear
Low-Moderate High
Blue
Red: Face to face Competition Black: Average Competition Blue: Partial Competition
In the Furniture Category Habbit and Interwood will be the brands that are a serious risk to the ChenOne's Business in this category. They are really competing face to face in the almost same marketplace with almost same product lines.
In Formal Clothing, Cotton & Silk cotton and Shirt & Tie are the brands that provide rough time to ChenOne's products in this category.
In Informal Clothing, Cross Highway, Outfitters, Stone Time are fierce for ChenOne. Specially Mix Highway and Outfitters are in the top list as they are positioned in same area as is ChenOne and in Multan, Lahore and Rawalpindi they are really in same plazas.
In Formal Clothing, Bareeze, Ideas, Silk cotton n Cotton, Tee shirt & Tie up give face to face competition.
Soul is the largest threat for his or her brand PrettyFit as they are targeting same market segments with almost same prices and quality.
Despite all the conclusion that prevails on the market, ChenOne has held its market place secure and retained its customers as well as produced new ones by sticking to the perceived quality of products, their life and unique designs.
Strengths:
One Store Solution: ChenOne provides one store treatment for its targeted customers by offering a wide range of product line which can be split into three different categories: home, feet wear and garments. ChenOne is known for its product variety in both house keep and personal wear.
Superior quality: ChenOne is well known for its product quality where every individual item is on top of quality. The product quality team at ChenOne in my opinion views each product and the defected items are immediately removed from the stock.
Distribution Network: ChenOne has its own circulation network where it doesn't need to rely on other intermediaries and therefore add value to the value and supply chain.
Established target market: ChenOne has a precise target market and it's really dedicated to its segmented market. It focuses on the niche portion of the marketplace which is affluent and recognizes the value of good quality.
Brand Name: It offers strong brand understanding in the imagination of the consumers and its presence is strongly felt on the market. A subsidiary of Chenab Group adds to its brand power.
High focus on personalization: Its area of interest target market is on top of personalization and product quality and can afford to pay superior prices for a one store solution for the purchase of various items. Each item is carefully analyzed and based on its maximum personalization and superior quality, is then located in the store.
Strong word of mouth publicity: The mark market of ChenOne is in a way that they would tell others about a good brand that they themselves are satisfied. Hence ChenOne is very high on word of mouth promotion. Catchy and trendy tagline: The tagline of ChenOne is changing life-style which show both the strength and the power of the brand to have the ability to change and affect the approach to life of its consumers. This tagline is also buzz and catchy which ultimately shows youthfulness of the store in the sight of its aim for consumers.
Strong management: Being under the Chenab group ChenOne is on top of management where the employees are focused on providing high value and superior quality to the clients.
Low turnover rate staff: the turnover rate of ChenOne is very low when compared with all of those other competitors on the market. Thus company enjoying high inner satisfaction level.
Technological edge: Being associated with Chenab group it's highly centered on technology where constant change is the name of the game. Through technological growth ChenOne stays a step ahead of its competitors.
Elegant and creative designs and styles: Apart from excellent quality and uniqueness the brand is also known for the elegancy and creativeness in the merchandise it continues in the store.
Accessibility: The customers of ChenOne are eased by the easy accessibility where the products are available at their exclusive stores.
Weaknesses:
Targeting marketing topic: ChenOne is weak when it concerns diversifying itself in other market segments. Its continuous concentrate on the market niche is which makes it disregard the other market sections that will be more profitable just by the utter size of it.
High prices: High prices are a weakness of ChenOne since the inflation and instability of Pakistani market are robbing the consumers of these purchasing forces. With an increase in prices in all the commodities people would like to buy less costly stuff as they would have done normally.
Outdoor ad sometimes use amorous appeals: Pakistani market is in a way that the advertisements should be achieved with a very careful analysis since it might damage the brand image in the heads of the consumers. Regarding to recent studies some of the adverts by ChenOne were amorous in nature and therefore created a negative image in the mind of the consumers.
Static target market: ChenOne is focused only on concentrating on its market niche market where it includes dived into a stagnant market.
Opportunities:
International Market: ChenOne comes with an opportunity to enter unexplored International marketplaces whereby creating a global presence of its stores in the heads of international consumers. This would not only boost the market show but also create a global brand image and would increase its gains and product desirability.
National Market: ChenOne comes with an opportunity to open new stores within Karachi and other cities of Pakistan for easier option of its consumers, making more countrywide presence, increasing wider consumer show, profits and a chance to be prior to the competition.
New Segments: Apart from discovering into new regions, countries and places it will also diversify itself by getting into new segments other than its niche section it's been focusing on. This might not only increase earnings but make the stores more known and create more brand recognition.
Discounts: Pakistani markets are incredibly price conscious and therefore varying the prices is a sure way to get customer attention. It should provide discounts following a certain time period so that folks should shop more and purchase more. This would attract new customers.
Threats:
Competition offering diversification and high quality: Other stores like habitt, ideas etc are also highly centered on high quality and diversification of course, if ChenOne doesn't make strategic ideas to diversify itself this menace would turn into a serious issue in the near future.
Direct/ Indirect competition: ChenOne, because of its diversification, has a lot of competition both immediate and indirect. This has resulted in a lot of unwanted competition where it must keep tabs on obvious and invisible competition.
Related unrelated diversification: ChenOne has varied its product line and has included a great deal of related and unrelated diversification which in its own self is a major threat.
International market diversification: Diversification is important and vital for stores like ChenOne to develop, however if this diversification isn't monitored closely and handled probably it could pose a menace in the actual market.
Political instability: Pakistan is politically instable around its history. Attacks, terrorism and regulations and order situation has generated havoc searching for the retail stores like ChenOne.
High inflation: Due to high inflation there's a significant decrease in the buying vitality of the consumers. The inflation in addition has affected the production costs. Thus adding a severe danger to the profitability.
First-year Aims:
For another calendar year the store's goal is to increase its sales by beginning lots of new retailers for easier accessibility to its customers. ChenOne packages on beginning new stores in various places where it had not been functioning previously and to start 2 more shops in Karachi so that customers can shop with convenience.
Second-Year Aims:
The target of the business in the second year is to further expand their stores and divulge in to the market share it includes previously dismissed. It's working on starting of new stores under a new brand which would target the middle and lower middle class to be able to increase their market show and gain more customers. It also plans on beginning more stores overseas such that it benefits more international acceptance which would improve the value of the brand.
Issues:
According to the objectives of the business the major issues confronted by the store is the financing to support its expansion blueprints both at nationwide and international level and also to create more brand recognition to the people who recently did not acquired usage of it. This might require heavy advertising and brand promotional activities on the behalf of the store. It would additionally require heavy research in order to analyze and target the market in the perfect way. High quality and product differentiation would also be a concern for the brand since it might be divesting in so many new marketplaces.
MARKETING STRATEGY:
The marketing strategy is based on the placement of product based on differentiation on superior quality. It targets upper midsection and elite school who have the purchasing capacity to pay more for the quality products.
Positioning:
The ChenOne positioning of its products is based on product differentiation. It differentiates its products based on quality. It really is providing a top quality of products at differentiable prices.
Product Strategy:
ChenOne offers substitute offers for its clothing products but doesn't have such offers for kitchen accessories. The replacement offer is valid to customers conditioned you follow the insurance policies and instructions provided with the product but it does not entertain replacement claim if the fault is at customer area.
Pricing Strategy:
ChenOne is focusing on to the upper middle and top notch school. Its market involves people who requires best quality and trendy lifestyle and also have the buying power to pay more because of its products. ChenOne price high for its products but it is justified for the quality it offers to its customers.
Distribution Strategy:
ChenOne has its logistics and syndication network all over Pakistan. It's one of the talents over its challengers. Having its own circulation and logistics network provides ChenOne a great possibility to have a rigorous control over the delivery system. They have a computerized system where order is automatically located to the warehouse when inventory level falls to the ideal level. It reduces the costs of ordering and reduces newspaper work also.
Marketing Communications Strategy:
ChenOne use various marketing programs to connect its marketing text messages to the targeted customers. The major channels in Pakistan are
Billboards
Newspapers
Fashion Magazines
Internationally it includes its own fashion journal & has plans to present such activities locally as well.
ACTION PROGRAMS:
ChenOne has seasonal action programs because of its products. It has different action designs for different conditions like winters, summers, Ramadan and Eid times. It provides different sales advertising during theses times. They have sales savings offers for off season products by the end of each season.
In winters it add services and sell the off season products at discounted prices, vice versa is performed for the other months.
BUDGETS:
The marketing budget for the ChenOne is 5% to 6% of its product sales. The other characters were not plainly disclosed by the ChenOne's director because of the policy restriction.
BCG Matrix:
Cash Cows
Ladies Foot Wear
PrettyFit
Home Furniture
Question
Marks(?)
Crockery
Cash Cows
Home Textile
Garments
Dogs
Men's Ft. Wear
Hierarchal Graph:
Questioner
What are your products (SBUs)?
Which market segment do you aim for?
What is your market position, how much profitable?
Your objective "changing lifestyle" and its own objectives?
What makes you not the same as others that is exactly what your competitive edge is?
Who are your suppliers and vendors?
Effects of cultural change, threat or opportunities? how do you offer with them?
What are your Channels of marketing?
What departments your business have?
Can you please provide organizational graph?
How your management controls over the entire organization?
Your focuses on that you achieved up to now?
Sources:
Hamood ur Rehman
General Supervisor, South
ChenOne, Area Towers, Clifton
Karachi
021-35876653
www. chenone. com. pk/
www. fashioncentral. pk/pakistani/designers/181-chen-one/
www. chenabgroup. com
http://www. quickmba. com/strategy/swot/
http://www. scribd. com/doc/17768730/IDEAS-by-GulAhmed-Textiles
http://commerceplus. blogspot. com/2010/07/internship-report-on-chenone. html
http://she9. blogspot. com/2010/06/chen-one-2010-2011-collection-latest. html
