during the compilation of this report.
LETTER OF TRANSMITTAL
April, 13th 2015
Dear Mr. Riaz,
We request you to accept this report on “BONANZA; A Failed Market Pioneer” assigned to us as a Term Report.
The purpose of the report is to inform you regarding our recommendations. In this report, we have tried to alter some of the 4P's of marketing which involves price, place, product and promotion. The data for the report was collected through the help of questionnaires filled by the students of IoBM and some of the people living in the vicinity of the team member's residence and the malls of the city. We have tried our best to cover all aspects of the subject and we hope that this report will serve its purpose.
Thank You for taking out some time for our report. If you have any queries or suggestions regarding the report, please feel free to contact us through our official university Student IDs. Thank you once again for your never ending support and encouragement.
Malik Daniyal Jan
The case study was written to point out the marketing errors or the myopias that the Junaid Jamshed (J.) has committed which is leading to its downfall. The main aim of the case study is to analyze the problems faced by Junaid Jamshed (J.) and to recommend solutions so that it can regain its market position which it had achieved by being the market pioneer. It will also provide guidance on how different marketing strategies can be implemented to turn around a failing organization and make it profitable again.
JUNAID JAMSHED; THE RISE OF A PIONEER
It all started with an outlet at Tariq Road in 2002. At that time, Tariq Road was, and still is, a shopping hub for those who seek to buy the latest in fashion cloths. Initially, only men's wear was available at the store, but later on clothing for women, children, teens, as well as formal wear including groom's wear was also added to the product list as expansion continued. In 2011, we took another bold initiative and gave a new look to all our outlets as part of our'New Outlook, New Outlet' strategy. This broke the monotonous theme of our outlets by making them more modern and different from others.
The main idea behind launching J. (J dot) was to reintroduce traditional clothes in Pakistan with a blend of modernism. For this purpose, we initiated with reworking on our Eastern dresses, especially Qameez Shalwar and made them contemporary with the latest elaborations available. The experimentation with this rare combination resulted in an increased interest of people toward modified Eastern ensembles, which will always be in vogue.
The diverse collection of men's wear at J. ranges from formal to semi formal to casual wear.
All these ensembles are adorned with the right amount of embellishments, embroidery
and/or cuts, depending on the event they are made for. On top of that, the fabric is hand-woven, comfortable and available in eye-catching colors and designs to suit your taste and style. Our men's collection includes:
• J. Kurta Bunnat
• Qameez Shalwar
• Unstitched Fabric
• Sherwani, Turban, Khussa and other accessories forthe groom
If we define ALMIRAH in three words, it will be elegant, classic, and high-quality. It is the innovation of classical and contemporary designs which lifts your sense higher. Beautiful rich hues and fine fabrics of ALMIRAH'S collection is a promise of luxurious quality. Embellish your wardrobe with ALMIRAH'S style, infused with creativity beyond imagination.
COMPETITIVE MARKET ANALYSIS
The Pakistani fashion industry is getting mature in every sense of the word as new and new products have become available to the customers. Junaid Jamshed faces stiff competition from the local competitors such as Al Karam, Khaadi, Gul Ahmed, Bonanza and Sana Safinaz among others. With the foreign brands moving into the local industry, this too has had a negative effect on the sales and market position of Junaid Jamshed.
The new competition and the fashion lifecycle is very dangerous to any brand in the industry with new and new products coming in without giving any time to the players to adjust in the market. Apart from this, the overall political and financial situation of the country is not very supportive of businesses and is having negative impact on Junaid Jamshed as well.
OVERVIEW OF THE TEXTILE INDUSTRY:
The textile industry of Pakistan started off with 2 or 3 units and since then its growth has been rapid. At present there are more than 700 units with 15000 machines. The textile industry of Pakistan produced simple yarn, cloth and other items in the beginning but as time progressed more value added products were produced.
Textile industry is the main source of foreign exchange for Pakistan as it is the most important export of the agriculture based country. Textile contributes to 38% of the manufacturing industry and 8% to the GDP of the country.
In Asia, Pakistan is the 8th largest exporter of textile products. . About 53% of the total exports of the country consist of textile products which amount to 13 million US dollars approximately. Textile industry contributes around 46% of the total output of the country. Pakistan is the 8th largest exporter of cotton in Asia.
TARGET AUDIENCE OF JUNAID JAMSHED:
In the beginning Junaid Jamshed aimed to target the young and the middle aged men. This became their default target market. But with time they tried to target the men from all the age segments through Qameez Shalwar & Waistcoat.
Through their women's apparel they have tried to target young women of the age of 20 and above who prefer ready-made modern yet traditional clothes. It has also tried to cater to the working women, both executive and non-executive with their formal and semi-formal line of women clothing.
CAUSES OF JUNAID JAMSHED'S FALL OFF THE PERCH:
Following are the reasons why Junaid Jamshed despite being the market pioneer wasn't able to retain its position and market share:
INDISTINGUISHED MARKETING EFFORTS:
Bonanza currently advertises and promotes its products but this does not seem to be effective. This is a huge problem for bonanza as the company should invest in their marketing function and monitor the progress of marketing functions in order to quantify the effectiveness of their marketing. The following are the reasons of Bonanza's ineffective marketing:
1. Value Proposition:
In today's marketing world every brand needs to give or provide something extra to their customer i.e. value proposition. Junaid Jamshed men's apparel is very low on value proposition they need to work hard on creating a brand image or value proposition in the minds of the consumers so that they can relate or create a link with the brand.
2. Low Brand Recall:
Another reason that we came across during our research is low brand recall in the minds of the customers with regard to Junaid Jamshed. In our survey, that we conducted Junaid Jamshed men's apparel rated low in terms of brand recall as compared to other giants of the industry that include Al Karam and Gul Ahmed.
3. Lack Of Advertisement:
Lack of advertisement is another reason that Junaid Jamshed has lagged behind their competitors. As compared to the other textile industry giants, Junaid Jamshed does not advertise much through television. Their main medium of advertisement is the print media and the billboards. Whereas Gul Ahmed and Al Karam spend a lot on electronic media which has played a part in their market leadership and increased revenues.
4. Lack Of Differentiation:
Junaid Jamshed lack differentiation i.e. they don't have anything special or extra or different to offer that their competitors offer. In the present times it's all about differentiation and what can you offer to your customer. Junaid Jamshed needs to come up with different strategies to provide the extra bit to its customers so that they have a positive image of the brand and relate to it.
NO AFFILIATIONS WITH FAMOUS DESIGNERS:
As the fashion industry requires change after every small interval it is necessary to bring in various celebrity designers who can help them achieves the required volume. In the current market scenario most of the textile companies are collaborating with various big shot designers to sell their products, this has resulted in huge revenues for the textile companies and on the other hand Junaid Jamshed have their in house designers which gives their competitors an edge over them in this regard.
NO EFFECTIVE RESEARCH AND DEVELOPMENT:
Because the fashion industry looks at continuous improvements the companies operating here must continually look at improving their product designs and this may also include the preceding point that they need new famous designers who can help them achieve their potential.
LACK OF INTERNATIONAL REPRESENTATION:
The Pakistani fashion industry is developing and is going places. The famous fashion designers of Pakistan are taking part in the biggest fashion weeks around the world and are gaining recognition. Junaid Jamshed is not doing so and that hurts their image domestically while the international market remains unaware of their products and potential. This is a major problem and an opportunity for Junaid Jamshed to gain ground and compete with the domestic rivals.
DEFICIENCY OF INNOVATION:
To become a market leader innovation is a must which Junaid Jamshed lacks. The other companies that are playing in the apparel industry have succeeded because of their innovative marketing strategies and products. Junaid Jamshed needs to innovate through product line extension, packaging and services.
Image of the owner himself has damaged the brand reputation severely mainly because of the controversial statement regarding the women's in media which has led the downfall of the Junaid jamshed. This is the reasons it has launched a new brand as almirah to cater the costumer
REINVIGORATING JUNAID JAMSHED:
Following are the ways through which Junaid Jamshed can strengthen their market share and position in the industry and recapture their lost market and image in the eyes of the customers:
Junaid Jamshed needs to increase its advertisement moreover it should not stick to traditional methods of advertisement as being in an aggressively competitive market and an ever changing market being the first one has become very important. Latest advertisement methods that can be used include location based advertisement, sensory billboards etc.
GIVING JUNAID JAMSHED FACE:
Junaid Jamshed should look towards hiring a brand ambassador with a good reputation and also a person who has a high fan following as it has been noticed that people like to use a specific brand if it is represented by a person who they admire and look up to.
INNOVATIVVE PRODUCT DESIGNS:
The main reason behind junaid jamshed being a market follower instead of a leader is that it lacks innovation and follows the lead of other brands such as Gul Ahmed and Al Karam. They should invest more in order to innovate and come up in the market and increase their revenue and come up again and emerge as a market leader.
CREATING CUSTOMER INTIMACY:
A company that maintains good customer relations is the one that succeeds in the long run. Therefore it is very important to continuously keep in touch with the customers through maintaining a Facebook page as it will help in understanding the customers' needs and their feedback about the product.
BEING SOCIALLY RESPONSIBLE:
Before it was only a trend which was observed in the west but now slowly it has moved into Pakistan also. People like to be associated with brands and products which are socially responsible and are attached to and promoting a cause .So Junaid jamshed can also choose a social issue or an environmental issue and play its part.
PRODUCT LINE EXTENSION:
These days only the diverse businesses are surviving thus bonanza too needs to diversify its line of operation i.e. they need to venture into different product lines. Junaid jamshed apart from producing women clothing and men's apparel.
Expanding beyond borders has become very important. For example Khaadi has opened up its store in London. Junaid jamshed could look up to opening outlets in different countries. It can start by promoting its sweaters and dress shirts for which it is famous in Pakistan too. It should also get in the global fashion circuits by getting into various fashion weeks starting with the Asian fashion circuits this would help them gain recognition in the region and after that they should venture into the different western territories.
Junaid jamshed can take up different promotion campaigns some of which can be participating and presenting its designs in Pakistan fashion week. It can also set up completions in different fashion schools through which the participants can get a chance to design a lawn print for Junaid jamshed. It should also welcome internees from business and fashion schools as it will help them with generating new ideas. The main idea behind these promotional campaigns is to continuously remind the people about the brand so that they have a strong brand recall in their minds.
The main aim of this case study is to highlight the major reasons for the fall of the market men's clothing of Pakistan i.e. Junaid jamshed.
It looks at the different marketing errors & controversial statements which Junaid jamshed committed which led to their loss of market share and position. We have highlighted their erroneous strategies including their research in development and the lack of modern advertisement techniques.
And in the end, we have provided some strategies that would help Junaid jamshed retain its image and market position as the top men's apparel brand in the country through some innovative and modern marketing efforts.
Junaid Jamshed started with an outlet at Tariq Road in 2002. It was the main shopping hub for those who seek to buy the latest in fashion cloths. Initially, only men's wear was available at the store, but later on clothing for women, children, teens, as well as formal wear including groom's wear was also added to the product list as expansion continued.
For a good one decade Junaid jamshed men's apparel remained at the peak as there was no competition as such in the industry but with time there market and financial position deteriorated as new competitors entered the market with innovative styles and products. Junaid jamshed lost their image and market share also due to controversial statements from the owner and still has not been able to catch up with its competitors.
With the ever changing scenario of the fashion industry with new competitor and products the competition is very stiff for Junaid jamshed. They have not been innovative & effective with their products and style which has negatively affected them. Junaid jamshed failed to adopt with the changing market trends which led to their debacle in the fashion industry.
The demise of Junaid jamshed can also be associated with their ineffective marketing strategies and misappropriate statements. The market share of Junaid jamshed stands at a shocking 10% despite once being the market pioneer.
CASE ANALYSIS AND CONCLUSION:
From this case study we have concluded that Junaid jamshed needs to come up with innovative and out of the box strategy in order to regain their market position. They have to adapt to the changing market trends and implement modern marketing techniques which would help them come at par with their competitors and challenge them ass a strong rival in the fashion industry. They also need to distinguish them with their owner statements.
They need to increase the awareness in the eyes of their customers and improve their brand image. They need to hire brand ambassadors and designers to further improve their perception as a strong and serious brand. In order to be a market holder they need to implement modern strategies which would help them to rejuvenate the brand and put forward the value proposition that they are offering to their customers.
1. What is your perception of Junaid Jamshed as a brand? If a high end brand, why and if a low end brand then why?
2. Do you agree with the current marketing strategies of Junaid Jamshed? In your opinion, are they doing justice to their product and the hefty amounts spent on their marketing?
3. What would you suggest to Junaid Jamshed to improve their market position and revenues?
4. Can Junaid Jamshed become a market leader? If yes, then how?
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