Professional Documents
Culture Documents
INTRODUCTION
Peter England did that successfully and captured the Indian middle class
minds honestly.
Launched in the year 1997, this brand has captured the Indian middle
class mind, that too honestly.
Peter England as a brand has a rich heritage. It began in the year
1885 when foundation was struck for 5 storied building in Ireland. In
1888 Peter England factory came in to being. It was during 1889-1902
that the company expanded when it got the order for outfits for
British soldiers for the Boer war. The order was large and it demanded
quality merchandise at Honest –to- goodness price.
The brand came to India in 1997. During that period there was a huge
potential for a mid segment shirts in the 60mn pieces Indian shirt
market. The industry was dominated by in store brands and the
consumers have to painstakingly check for the right shirt. The then
owners of Peter England (Indian Rayon) wanted to tap this segment.
Thus, evolved the idea of a brand that aims to shorten the buying
process of the consumer .
Research also revealed that the consumers perceived premium shirts
as overpriced and there was a need for such a national brand. Also
another insight was that the market had a perception that good
things happen to people who wear good clothes.
Peter England was initially positioned as an “Honest Shirt”. The
strategy clicked and has to click because the product was very good
and the price was excellent. It just fit in to ones budget. The target
market for the brand was the 24-28 ambitious and career oriented
youth.
In order to make sure that the excitement remains, Peter England
came out with various ranges and varieties of shirts. The brand also
extended to trousers with the same positioning. Although some of the
variants like English Cottons compromised on quality , the brand still
enjoys a good equity in the targeted customer’s mind.
In 2002 the brand made a slight makeover. The positioning changed
to “Honestly Impressive”. The aim is to make the brand more than
just value for money proposition but also as a lifestyle brand. It has
maintained its value proposition unchanged.
Peter England is a brand that clearly shows a marketer that it is
possible to sell... Honestly.
RETAIL FORMAT
The Peter England People (PEP) brand is marketed through Peter England
Fashions and Retail, a division of Aditya Birla Nuvo, which is one kind of
specialty store.
The PEP brand, which is distinctly different from its more retail brand, will
be rolled out through 80 stores spread over 34 cities across India in the
next three to five years. After Mumbai, the next stop for launching the
new retail brand will be Bangalore, which will be immediately followed by
Hyderabad and Delhi by early June. And by the end of the fiscal, the
company expects to have 10 such stores across different cities. Each
store will be spread over 10,000 to 15,000 sq ft.
PEP’s hallmark will be the concept of a family store, where Peter England
brands of men’s, women’s and kid’s wear will be on the shelves.
In this report , Peter England specialty store is taken for the analysis.
As shown into the above figure, pink dots are the Peter England specialty
store into Pune. It is clear that Peter England adopts the Blanket
strategy to capture the market means they cover particular area with
their stores. E.g. in the figure they have covered area between shivaji
nagar & aundh.
MERCHANDISE ASSORTMENT PLANNING
Peter England has simplified the buying process as shown into the below
process with the help of their merchandise assortment in the specialty
store.
From To
Search for a good shirt across Ask for Peter England as their first
counters choice
They are also maintaining the separate section for the New Arrivals
which we can clearly see from the figure. This is good strategy to attract
the costumer attention to the new product, so that company can safely
introduce new product.
First I was confused that why the above lot of trousers are not assorted
as per the colors, but after asking sales personnel I came to know that
those trousers are very rare to be chosen by the customers(out of
fashion). This is also the good strategy to slowly remove your product
from the shelf space by allocating them whole separate section. Store
persons tell these stocks non-moving stocks
Now let us understand their assortment done into the Peter England
Specialty Store with the help of the diagram (diagram is shown on the
next page). As this is the case specialty store, there is no question of
private labeling.
Peter England
specialty store
Half Catego
Half
Sleeve ry
sleeve
s
s
Sub-
Category-I
Full
Full
sleeve
sleeve
s
s
Color- Color-
A A
Sub-
Category-II
Color- Color-
B B
Small Small
Medium Medium
Stock Keeping
Units
Large Large
Extra- Extra-
large large
The retailer must make decisions regarding the merchandise offered
depending on the sales targets and financial objectives of the store.
Retailer should be very careful while deciding on the amount of stock to
be maintained in each category; if large stocks are maintained in a
particular category, there may not be sufficient resources left for
providing a deeper assortment of goods. By taking into consideration this
phenomenon all Peter England specialty stores are maintained on the
basis of the per square foot SKUs. It means that as shown into the
figures of assortment, every SKU are replenished in the fix quantity.
Because of this there is no question stock out situation. Their Shirts
STORE LAYOUT
There are some key factors that a retailer should take into account, while
developing a layout prototype. The following are the optimizing factors:
• Increasing sales
The store lay out should enable and incite the customers to move around
the store to purchase more products than they have actually planned for.
The store layout should tempt customer to walk along the inexpensive
merchandise display section for impulse buying and then move on to
expensive merchandise.
There are three types of store layout
1. Grid layout
3. Free-form layout
From the above figures it is clear that to meet the optimizing factors of
the store lay out Peter England specialty store has made the
arrangement such that customer have ample space to move around ,and
pick and choose from the merchandise at ease. This layout is expensive
because of high cost of display aids.
STORE EXTERIORS
Generally, the first impression of a customer about a store is formed by
its exteriors. The exterior of a store plays a vital role in attracting new
customers and retaining existing customers. Retailer while planning their
store exterior may consider any of the following option. From the below
Peter England is using proto type structure.
1. Modular structure
2. Prefabricated structure
3. Prototype structure
4. Recessed structure
5. Distinct structure
Marquee: typically carries store name along with the trade marks. Here
you can see Peter England marquee is not much blowy and outside
signboard is put which matching with its positioning tag line “Honestly
Impressive
STORE INTERIORS
The principal objective of any retailer is to maximize its sales and
customer satisfaction, and to minimize the operational costs. Therefore,
the interior of the store should be designed in such a way that it serves
this purpose. The store interiors should be attractive. Peter England
specialty store have considered two parameters
New arrivals
Suits
Trousers
Trousers
Shirts
T-shirts
Shirts
Seating
Non-moving stocks
arrangeme
nt
Casual shirts
Trial rooms
Ganesh
a Formal
T-shits shirts
s
Accessorie
Counter
shirts
ATMOSPHERICS
Visual communication
From the above photographs it is clear that specialty store of Peter
England has a good visual communication which involves communicating
with the customers through graphics,signs and certain theatrical effects
inside the store.
Some of the main objectives they have achieved with lighting are
following:
There is also a mild fragrance available into the store to influence the
purchasing decisions of the target market.
As shown into the photos they have used mild colors (like cream color)
for ceiling and walls, so that customer can recognize different colors of
various apparels very easily. There is no any kind of music which
perfectly matches with the “Honestly Impressive “tagline of Peter
England.
IT SYSTEM IN STORE
As shown into photo, they are using Bar-code reader to directly feed the
information into their system, so that they can manage the inventory
properly. They were using the software “Shopper -A Retail Solution”. This
software is directly connected to their warehouse and it automatically
generates order quantity by forecasting the demand.
Because of the above Bar-code reading technique, they are able to get
the real time information of various SKUs and also about the consumer
preferences which help them to schedule the production.
SWOT ANALYSIS
1. Strengths
• Well-orchestrated merchandising
2. Weakness
3. Opportunity
4. Threats
Generally a retail site is evaluated on the basis of the sales potential and
the cost of doing business at that site. The following factors have been
considered for selecting the site of Peter England specialty store.
• Traffic flow during the day time at the selected site is high. It
indicates the opportunistic nature of the selected site.
RECOMMENDATIONS
• They can also go for department store format ( like taking a place
on lease in KAKADE mall)
• Blanket strategy should be converted to large area coverage
strategy to increase the sales or else they can use mixture of both
the strategies like Wall Mart.
References
• www.peterengland.com
• Business Today(Magazine)
• http://www.scribd.com/doc/2302942/Case-Peter-England-The-Honest-
Shirt-