Marketing audit for keiru clothing company

October 9, 2017 Marketing

Keiru is a vesture company based in Lagos ; Nigeria. Kim Anugo founded the company six old ages ago. Under her leading, it grew from one mercantile establishment in the centre of Lagos and it is known for its high quality merchandises throughout the metropolis. The mercantile establishment operates independently and has its ain equipment and direction and provides made to mensurate manner points from its ain premises, all of which are located within chief shopping precincts. Up until about 2007, the company enjoyed a figure of old ages of steady growing, but since so gross revenues have levelled out around the & A ; lb ; 2m grade.

The Collection designed and made by the interior decorator is sold entirely to some of the finest high street retail merchants both in Nigeria and London who have unparalleled reputes for service and atmosphere. Its shop characteristics designer manner merchandises inspired by manner tendencies in Africa and abroad. Some parts of the operation, such as design, production, gross revenues and selling, are centralized. The house employs 10 people: Kim, gross revenues advisor, 1 new wave driver, 2 admin people, mechanics, professional cleansing staff, and design squad. Kim, who is CEO, is responsible for the overall running of the concern. She besides looks after selling.

Mission

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To fulfill their clients ‘ demands and besides transcending their ( clients ) outlooks.

PRODUCT AND SERVICE

The company designs/manufactures its ain apparels, jewelry and accoutrements. There is besides a bespoke and made to order service that caters for its clients. The focal point of Keiru is to provide for adult females who express themselves and at the same clip stand out from the crowd. Their program is to spread out into other countries such as insouciant wear, jewellery, aroma, insides, ready to have on and beauty. The company provides high quality aggregation that communicates freshness, originality, individualism and edification whatever their outlooks and budgets.

Fiscal turnover

Below is the fiscal turnover for the twelvemonth 2009. It shows the followers:

This reappraisal states the fiscal consequence of its operations for 2009. keiru reported amalgamate gross operating gross of & A ; lb ; 200,000 for the first half of 2009, a lessening of 2 % as compared to the 2nd one-fourth of 2008 ; consolidated gross runing net incomes of & A ; lb ; 126000 declined 10 % over the same period of 2008, and amalgamate net net income of & A ; lb ; 365000 declined 31 % over the same period of 2008.

Situation Analysis

The Nigerian manner industry is really big and diverse. There are 900 million people populating in Nigeria. The Nigerian manners ne’er seem to travel out of manner. This means that the manner concern in Nigeria is still a nisus concern. Nigerian adult females are ever looking for apparels that flatter them and at the same clip sexy. The root of the Nigerian manner can be found in any local market. A length of fabric cost around & A ; lb ; 12 and a seamster to suit is another & A ; lb ; 12. Everyone have their ain personal interior decorator and the scope of manner provides inspirations for Nigerian interior decorators. The manner industry has grown with the state ‘s flourishing amusement industry. Actors, instrumentalists, actresses all want to look good.

African print is in but with a turn of western manner as seen on manner telecasting. The telecasting, magazines are all influences of the peoples inspirations. With a population of 150 million, the potency for growing is progressively immense. However, the monetary value ticket for most interior decorators wears remains excessively expensive for most Nigerians. Interior designers are be aftering to bring forth cheaper scope of aggregation for the mass market. The maturating market is no longer about the apparels but the power of stigmatization. This means that most Nigerians are more trade name witting than others.

Once a trade name is labelled on a garment it ‘s a whole different narrative. Peoples want to see themselves in the vesture when they buy it but besides they want the glam that comes with it. Everything interior decorators do is to do people fall in love with their brand/collection. The fast one will be to do the remainder of the universe besides fall in love with the trade name every bit good.

Design cost between:

Spending power of consumers: $ 300 – $ 3000 each.

New study by MasterCard shows that Nigerians are the lone Africans who plan to increase instead than diminish their discretional disbursement over the following six month.

Spending power:

55 % addition in disbursement

35 % manner top precedence: manner accoutrement are a top precedence for more than 35 % of Africans.

External Analysis i?§Macro Environment

The wide external factors that indirectly impacts upon an administration are consist of political, legal, economic, societal and technological factors. These factors are used to analyze how macro-environment affects the company ‘s nucleus concern in order to do their selling determinations.

PESTEL Analysis

Below are the macro environmental factors impacting the administration ‘s concern. They are as follows:

Political and Legal Factors

Factor

Consequence ON FASHION INDUSTRY

Deduction

Low-cost fabrication

Workers ‘ wages are below minimal pay.

This can damage the company ‘s image.

Public support: authorities grants/ loans.

The manner concern is capital intensive and entree to recognition is overriding to its success. Nigeria ‘s manner interior decorators, like other industries, are flatly denied entree. The few interior decorators who have been able to do it are members of Nigeria ‘s elite. The deficiency of entree to recognition is merely unacceptable as it leaves out highly gifted pool of interior decorators.

It can impact the flow of production and will be hard to run into client ‘s demands if there ‘s no authorities support.

Employment

Lack of extremely skilled workers in the industry. One who can run into production deadlines. As such, many Nigerian interior decorators look and do outsource their work in China.

Better quality merchandises and delivered merely in clip.

Economic Factors

Factor

Consequence ON FASHION INDUSTRY

Deduction

Oil monetary value

Addition in petrol monetary value.

This can impact monetary value, distribution and publicity, disposable income, outgo degrees and demand.

Exchange rate.

The monolithic devaluation of the Naira, nevertheless, made it impossible for makers to even afford imported fabric and fabric inputs.

Economy

Due to the addition in petrol monetary value, Nigeria faces a lag in the economic system

This can impact on the disposable income, outgo degrees and demand.

Social Factors

Factor

Consequence ON FASHION INDUSTRY

Deduction

Population tendency

Addition in the figure of people in Nigeria is 131 million aged between

There is an chance to aim new markets.

Migration

Increase figure of migrators in Nigeria versus the lessening figure of people traveling in.

It can impact selling scheme sing people and topographic point.

Spending power

High addition in purchases made by clients

Opportunity to increase gross revenues.

Technological Factors

Factor

Consequence ON FASHION INDUSTRY

Deduction

Secure on-line payment solution

Safe payment from recognition cards and on-line payment.

Increase client ‘s assurance to supply recognition card inside informations and purchase able to buy goods online.

Internet/broadband engineering

Improvement of cyberspace and nomadic connexions.

Opportunity to increase gross revenues online.

Environmental Factors

Factor

Consequence ON FASHION INDUSTRY

Deduction

Natural Materials:

No natural stuffs to work with. Fabric makers now rely to a great extent on imported natural stuffs and other fabric inputs to even get down fabric production.

It can impact production and besides the cost of importing might be expensive.

Decisions:

External Analysis-Micro Environment

Industry Analysis

The undermentioned diagram is based on Michael Porters ‘ 5 forces theoretical account ( 1996 ) . This helps a company to understand the competitory environment and besides look into the attraction of the manner industry.

PORTER ‘S FIVE Forces

Menace of new entrants

Factor

Degree OF Menace

Deduction

Brand individuality

Medium

The keiru trade name name is known in some parts of Nigeria but non recognized globally.

Proprietary low cost patent design

Low

New entrants are prevented from stealing the trade name ‘s thoughts.

Capital demand

Medium

New entrants might hold the capital required to put up a manner company to order for competition between trade names to take topographic point.

Merchandise distinction

Low

The merchandises are alone. The services offered are of high quality and different from its rivals.

Entree to distribution channel

Medium

Retailers will see the monetary value and quality of the merchandise before including any new stock to thir aggregation.

Decision: The above factors show the degree of menace of new entrants traveling into the industry is strong.

Menaces of replacement merchandises

Factor

Degree OF Menace

Deduction

Switch overing costs

Medium

Retailers consider two types of clients and they are price-conscious and trade name loyal clients.

Relative monetary value public presentation of replacements.

High

Customers desiring high quality merchandise and value for their money. Retailers adhering to their demands.

Decision: there are few utility merchandises in the industry that provides the same outcomes satisfaction for the clients but does it in a different manner. For this intent the replacement merchandises are strong.

Buyer power

Factor

Degree OF Menace

Deduction

Buyer volume

Low

The figure of purchasers are of minimal volume, this allows the provider to put the monetary value, intending that the purchaser has no pick but to buy from provider.

Decision: the purchaser power within the manner industry in Nigeria is low as there are few purchasers in the industry.

Competitive competition

Factor

Degree OF Menace

Deduction

Low shift costs

Medium

Customers exchanging from one merchandise to another, doing it hard for retail merchants to capture them.

larger figure of houses

Strong

Companies compete for the same clients and resources. The competition intensifies if the market portion is similar, taking to a battle for market leading.

Brand individuality

Medium

Customers prefer a known trade name. They feel more secure in the individuality of the company.

Diverseness of rivals

Medium

Merchandises are differentiated in footings of the manner, monetary value and quality. Companies focus on making a voguish expression that entreaties to its clients.

Decision: the above analysis shows the competition within the manner industry in Nigeria is considered to be at the medium low degree. It besides shows an intense competition between rivals all taking for a portion in the market.

Rivals analysis

The cardinal rivals are Tiffany Amber, Jewels by Lisa and Eva design. These full companies offer a full service and they have 20, 15, and 17 subdivisions located in Nigeria. They have been merchandising for at least 10 old ages. Bing in the manner concern, there is a tough competition traveling on.

Rivals

Products/market

Business way

Strengths

Failings

Competitive place

Tiffany Amber

Similar but offers personal stylist service

No alteration

Strong trade name individuality

Greater resources

Very expensive merchandises

Major

Jewels by Lisa

Similar but offers personal stylist service

No alteration

Greater online presence

Quality issues

Major

Eva Design

Similar

No alteration

Fiscal resources

Poor supply concatenation

Strong

In Table above, the Competitor Matrix is presented and it summarizes these rivals in relation to keiru trade name. It shows that the competitory environment by and large is tough and that it will be hard to seek to turn the concern by taking clients from the cardinal rivals. Tiffany gold is a powerful rival and shows have the countries where keiru is tete-a-tete with them.

Customer-Target market

Their primary clients are aged 25-34, and reflecting on their clients ‘ attitude, the keiru trade name is all about being sexy, confident, and passionate about manner. Its mark market is a immature, educated one that loves manner and wants ever wants to do a statement in their outfits. Today, people around the universe through assorted communicating devices have more entree to information about manner. Therefore, manner has become more globally standardized and keiru utilizations this to their advantage by offering the latest in dress.

Internal Analysis | Resource audit

Physical audit:

Machinery: the company owns production installations such as run uping machines, overlocking machines, Fe, etc.

Property: They own a two floor edifice, 1st floor is production country and land floor is boutique. The company does non outsource to other garment makers but they produce its ain aggregation in house.

Technology: They have a web site and Facebook page for its trade name that creates a planetary presence. Apart from that, we have realised the impact Facebook has on people, concerns and hope to do usage of Facebook as another manner to make consciousness for our trade name.

Human resource:

There are 10 employees in the company ( store and office ) .

Low budget preparation.

Intangibles

Fiscal resources

Fiscal Year

2006

2005

2004

Employee turnover ( in 1000s or naira )

72000

52880

20 %

Net net income

1002

803

25 %

No of shops

2

1

1

No of states

1

0

0

Employees

8

5

3

* The above tabular array shows the fiscal twelvemonth from 1st February to 31 January of the undermentioned twelvemonth

Beginning: keiru ltd Reports 2005, 2006

4

Internal analysis| Core competencies and Capabilities

Core competencies

Keiru nucleus competencies involve the followers:

Committedness to its employees and clients

Scaning the manner tendencies, market tendencies and run intoing the consumer demands associating to manner vesture.

Flexible production system

Direct contact with its clients. ( This is known as concern to client ) . This allows the company to maintain a low operating expense disbursals and high stock list turnover.

Capabilities

Although, the company is cognizant of environmental issues, it combines non recycled and recycled cloths, making a unique and high quality merchandises and besides offers made to mensurate service which its rivals do non offer.

Money:

Please refer to fiscal resources on

Markets:

The Keiru trade name is new in some parts of Africa and known in Nigeria in supplying ethical merchandises and service that its rivals do non offer, nevertheless, there is an chance for the company to be recognised globally.

Machine:

The company owns machineries used in production of garments. It has a new shop design that creates a shopping experience for its clients.

Work force:

Please refer to human resource on

Materials: natural stuffs are sourced and imported in states such as Dubai and Paris and its exactly located in the company ‘s production unit.

Competitive Advantage

Porter ‘s Scheme:

Harmonizing to the Porters 5 forces, Keiru provides distinction focal point scheme. For this ground, Keiru focuses on a group of section and is able to fulfill those demands. Equally much as Keiru provides a distinction focal point scheme, its purpose is besides to put a sensible monetary value and hold a sensible border.

Fashionable quality merchandises at sensible monetary value.

Based on its merchandise placement: keiru is somewhat cheaper than its rivals in monetary value and still stylish

Fast production: ability to plan and complete merchandises to hive away within a short period ( 4-5 hebdomads )

Ability to establish new tendencies, design and fluctuation of merchandise

Effective distribution systems

Value Chain Analysis

Below is the value concatenation analysis created by Michael Porter:

Firm Infrastructure

Medium

HR direction

High

Technology development depression

Procurement

Medium

Good squad working and corporate scheme

Good labour direction

Focus on new engineering and client demands

Inbound logistic

Strong

Operation

Medium

Outbound logistic

Strong

Selling

Medium low

Labour and natural stuffs available in house

Outsource portion production to model cutters in the UK

Control distribution channel

Direct sale to clients and better on publicity

The Value Chain: Beginning: Porter ( 1985 )

Figure 1

Inbound logistics

Customer service attack of the staffs adds value to the company. Staffs are well-trained and knowing in their accomplishments and occupation functions. Thereby, doing the company image more sustainable by winning client trust in the quality of service offered. Keiru hires immature interior decorators and trains them to do speedy determinations. They are trained to restrict the figure of reappraisals and alterations, rushing up the development procedure and minimising the figure of samples made. .

Outbound logistics

This will add value for gross revenues and trueness to the merchandises every bit long as the company being used for outsourcing has a good client service repute and trueness in their merchandises. Although Keiru uses mechanics for stitching, a huge bulk of cutting is done by them.

Operationss

Internal communicating is maximized by lodging on one floor, the interior decorators, form shapers and merchants, every bit good as everyone else involved in acquiring the merchandise completed. Reducing the sum of clip it takes to bring forth in the supply concatenation from 20-30 hebdomads down to 8-10 hebdomads. Besides, the company maintains a strong relationship with its mechanics and suppliers-viewing them as portion of the company.

Selling and gross revenues

Manner enter is a manner bureau based in the UK that assists the company in its selling and gross revenues by advancing its merchandises and besides carrying its merchandise in their company. Through manner enter, the company is known in the UK every bit good as US. This adds value to the company.

Service

Keiru utilizes viva-voce information to understand more about their clients. Its sellers informs the headquarter on the clients are stating. The shop ‘s atmosphere is consistent and appealing from the interior design, graphics, window shows, illuming and music. The company has personal contact with its client.

Swot analysis

Strengths and failing analysis

PERFORMANCE IMPORTANCE

Strengths Failings

Selling

major

child

impersonal

major

child

Hello

Master of education

Company repute

/

Market portion

/

/

Product quality

/

/

Service quality

/

/

Pricing effectivity

/

/

Distribution system

/

/

Promotion

/

Salesforce

/

/

Invention

/

Geographic coverage

/

/

Finance

Handiness of capital

/

/

Fiscal stablity

/

/

PERFORMANCE IMPORTANCE

Strengths Failings

Manufacturing

major

child

impersonal

major

child

Hello

Master of education

Facilities

Dedicated work force

JIT system

Technical accomplishments

Economies of graduated table

Capacity

Administration

Airy capacity

Airy leading

Dedicated staffs

Flexible/responsiveness

Administrative accomplishments

Opportunities and menaces analysis

Opportunity

Attraction

SUCCESS PROBABILITY

New market development

High

Merchandise development

Medium

International enlargement

High

High investing in new engineering and research and development.

Medium

Brand acknowledgment

High

Strong fiscal and physical resources

Medium

FOR THREATS

Strength

PROBABILITY OF OCCURENCE

Earnestness

Brand acknowledgment

High

Bigger selling budget from rivals

High

Merchandise development

Financial and physical resource

New market development

x

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