A case study on Padini Malaysia

Introduction:

In Malaysia Padini become the eyes catching brand in the most famous giant shopping mall. This brand also the most successful brand that I meet that can compete with the foreign same line brands like Giordano, Esprit, Elle and etc. From the minor focus group I did between my friends and relatives, surprisingly more than 90% of them thought that Padini is the foreign branded name like Esprit. Until I told them that actually Padini is the Malaysia local brand they also feel proud of this brand— Padini.

Thus, Padini also has the history from the stretch until today so popular in the Malaysia consumers mind. Therefore, this is the reason why I chosen Padini as the brand that is MADE IN MALAYSIA to compete with other brands in Hong Kong to show that Malaysia Boleh!

History:

Padini began as a backend operation in Malaysia’s apparel industry, manufacturing, trading and supplying garments for retailers and distributors.

Padini in Malaysia’s is a multibillion textiles and garment industry, a brand leader involved in the distribution and retail of its own fashion labels through 170 freestanding stores and in house outlet.

Each brand represents a fashion philosophy; each philosophy covers a comprehensive range of products aimed at a targeted consumer. Brand image is strongly backed up by real value: quality, functionality and price.

Padini Brands

We address fashion-conscious consumers of both sexes and all ages through eight distinct brands: Padini Classic, Padini Authentic, PDI, P & Co, Seed, Miki House, and Rope. Vincci accessories have focused on the fast changing tastes of woman consumers, and Seed Cafe opens an exciting new dimension in food operations for the company.

Padini’s New Stores

The company is on the expansion trail, with new stores targeted in the immediate future for Ampang Point, Prangin Mall Penang, Jusco Maluri and IOI Mall.

The Padini Mega Store in Johor Baru confirms the company’s reputation as a visionary leader in fashion retail. The 12,000 sq ft store consolidates all its brands under one roof for a total experience in shopping for clothes.

In The Pipeline

Padini will maintain and increase its leadership position in Malaysia’s fashion industry through various strategies. New brands and increased product diversity are key expansion policies. The company will continue to upgrade the image of its products while emphasising value and quality. Vincci is the company’s successful toehold in the lucrative but competitive women’s footwear market. There are plans to strengthen its dominant position with improved production lines and increased capacity. Having successfully etched its brand names into the consciousness of Malaysian consumers, Padini is moving to turn its various labels into regionally recognised fashion leaders. It intends to fulfil the potential of the export market, especially in the Asean region, and will also step up overseas marketing for its products.

Image Activities

Padini recognises the value of advertising and promotions in enhancing the presence and leadership of its brands. It participates in:*Magazine Advertising (Female, Nuyou, Eh!, Cleo, Marie Claire, FHM, New Tide and Cittabella)

*Cinema Advertising (Tanjong Golden Village, Mega and Pavillion)

Blow-up posters at key freestanding stores, banners and fashion shows have all contributed to Padini’s complete lifestyle message.

Vision

The vision shared by everyone in Padini is to be the market leader in the retail industry. We are committed to achieving this goal through hard work, discipline and creative endeavour. Currently, Padini Holdings is consolidating its operations in order to be even more streamlined. In the long terms, we will continue to maintain our high standard of design and manufacturing quality as well as affordability. We are also working towards expanding the business on a regional basis. At present, we have a growing presence in our neighbouring countries, and we believe that there is great scope for growth.

Environmental scanning towards country chosen:

Marketing in different countries around the world are depending to many influences. It is possible to identify those influences in order to understand the market thoroughly. The development of successful international marketing strategies is based on an effective understanding of the similarity and differences that exist in the countries around the world.

Padini are concerned with international markets need to be aware of the variety market contemplations relevant to their operations. Especially Padini only has limited exposure to international markets. Padini also lack of experiences toward the totally differences culture, geographically and other PEST factors countries like Hong Kong and Taiwan. The countries that Padini recently built their brand identity are Singapore, Thailand and Brunei.

Therefore, in this assignment I plan to develop this domestic brand —-Padini in Hong Kong. Although it is full of challenge built this domestic brand in this full of stiff competition country. At the same time, Padini also will face a lot of the new problems like how to manage the four seasonal stocks keeping, design, 4p’s and etc. But, if Padini can overcome the problems and successfully built the brand image like Giordano, in the future Padini also can develop their brand in Japan, Middle East, Pakistan and etc. It is because Giordano already successfully open their outlets around the world, amazingly Giordano able to open 50 outlets in Middle East.

Thus, in order to eliminate the problems we must scan the environment thoroughly.

Buyer behaviour

In international marketing the type of buyer behaviour must be matched to market considerations. Thus, Padini must understand the Hong Kong consumers buying behaviour towards fashion. The type of consumer buying behaviour varies according to the type of buying decision. The main influences relate to the differences between the brands available to the consumer and the degree of personal involvement decision.

Buying process is relatively quick because of the limited differences between brands (it means the brands that have parallel image like Bossini, Giordano, Elle and etc) But not included high price brands like Guess, Calvin Klein (CK), Gucci and etc. It also under low involvement, low price compare to Gucci and low risk group. Thus, consumers will always make their quick and fast decision when purchase Padini products.

Therefore, if Padini enter into Hong Kong market, in the future Padini will become the potential brand in international market.

Culture

The difference of culture in international marketing is thoughtful. It is an obvious source of difference. Some easy to manage but some the other ways round.

Culture is difficult to define precisely. It is the way, which people live together in a society, it also can influence by religion, education, family and reference groups.

In Hong Kong the Hongkee are very concern about their personal image, especially the younger generation. They are willing to spend the money to make-up themselves and never think about the saving. Padini will has a competitive advantage in fashion market it is because nowadays the trend for the fashion will change so aggressively. Padini still can keep the cost low production because Padini is the backend operation apparel industry.

Padini also can eliminate the culture problem in Hong Kong it is because the culture between Malaysia Chinese and Hong Kong are quite similar. It is because the Malaysian had influenced by Hong Kong culture through broadcast and media since we had our television.

Politic factors

The legal system operating within a host country is an important environmental influence for international marketers. Fortunately Padini products are the simple ordinary consumer products. But, the following areas in which international marketing management will be concerned to understand the legal position.

Contracts for the supply and delivery of goods and services

The registration and enforcement of trademarks, brand names, labelling Patents;Marketing communications;Pricing

;Product safety, acceptability and environmental issues

Hong Kong is a free port and the financial hub in Asia. In Hong Kong the politic is stable compare to a lot of other countries. Therefore, it is the time to develop the brand in that country.

Economic factors

Countries can be classified in a variety of ways. Most classifications are based on national income and degree of industrialisation. Hong Kong GDP per capita in excess of $ 3000. The market size and growth is encouraged, it is because Giordano can open the more than 50 outlets in Hong Kong within a years. Thus, the demand will very impressive if Padini fashion can really suit the taste of the Hongkee.

Competitive factors

Stiff competition sure will occur in Hong Kong market, but Padini brand image is strongly backed up by real value: quality, functionality and price.

In Michael Porter’s five forces the important forces that can affect Padini in Hong Kong is the rivalry between the competitors and customers. The others like substitutes, supplier and new entrant will be the second consideration.

How to develop brand image

3.0 Symbols

Buyers respond differently to company and brand images. The primary way to account for NIKE. NIKE succeeded in convincing millions of young consumers that shoe is not simply the shoe, it’s an attitude. Padini should also need to acquire this influence power in consumers’ mind.

3.1Media/ Advertising

Padini in Malaysia is the popular brand in consumers mind. If Padini wish to develop the brand image in the Hong Kong consumers mind it not so easy. Therefore, Padini should appear in the most popular Hong Kong magazine.

Apart from it, Padini also can give the post card brochures to customers to increase the brand awareness.

On top of that, Padini might engage in programmes that broadcast the fashion shows around the clock or 24 hours in the Specially formulated Fashion Channel in the satellite TV.

3.2:Events/ product endorsement

A company can build an identity through the events it sponsors. Every one know that Hong Kong TV programmes is attractive, consumers like to watch TV at the same time they also like to take the actor or actress as their image role model. Thus, if Padini can successfully sponsor the costume to the actor or actress in some soup opera or TV programmes. Padini brand will become more popular. These role models can conduct fan club activities featuring autography session and all these product endorsers are wearing Padini outfits.

When Padini develop their brand in Hong Kong it still need to choose the appropriate media to promote their brand and products. Thus, Padini can take part in their fashion show. For example, every month in Hong Kong most popular shopping centre “TIME SQUARE” will conduct the fashion show. At the same time, a lot of the famous actors and actresses will come to give the comment toward the model, designer and the fashion they wear. If Padini product also can be chosen by the famous actor or actress as their brand I feel that Padini will has the bright future in Hong Kong.

3.3: Atmosphere

The physical space occupied by the company is another powerful image generators. For example, in Hong Kong DKNY developed a distinctive image through its outlets. When you enter in you will feel enter into star trek space ship.

Thus, Padini need to survey how the competitors outlets interior design, layout, colour and furnishings in order to match the taste of the customers. If not, the consumers will project the brand is the inferior brand because of the outlets.

How to maintain the brand equity—–

ICEBERG MODEL

Padini also need to plan how to maintain the brand equity, actually maintain the brand equity is difficulty as develop the brand. A brand is what the customer buys. But, the equity is the marketing asset that exists in the customer’s mind.

Brands must be holistically integrated to meet target needs. For example in the Iceberg model the brand with nothing below the waterline lacks depth and sustainability. Thus it will not last for a long period of time.

Actually Padini must always take care of their stakeholders.

Padini should not only aim for maximising the profit and abandon the employees and other shareholders feeling. The best employees will generate the empire for the company if they sincere to their company. They will feel proud to be the members of the company. On the other hand, if the company squeeze them lack of motivation to them, sooner or later they will try to destroy the brand of the company.

How to be a social responsible brand

Nowadays the global marketer concern about environmental issues and social responsible. Padini also can take this opportunity to develop their brand in consumers mind.

Padini can do some promotion for example, if the customers purchase their products and keep their recycle bag for next time shopping use in Padini outlet they will deduct 10 cents for the environment charity group. It is because Padini can cultivate the customers to become more environmental friendly and Padini also can save their cost. At the same time, if everyone in Time Square carries Padini Bag, the other will be curious and wish to be part of the culture too. Therefore, the bag should have the serial number therefore the retailers only can proof the bag is old.

From the serial number, Padini also can motivate the customers in the better way by offering them the lucky draw in every month to win the Padini products like belt, tee- shirt, vouchers and etc.

Padini is the manufactures they have high technology in dyeing the material. At the same time, Padini also can tell the consumers that they very concern the environment pollution issues.

Conclusion—- Long Term Strategy

Padini also need to do the internal and external audit to strengthen the position in the international market. To do the audit the first step should do by Padini is to benchmarking with their strategy group competitors. The following picture is some example how to maintain the advertisement quality, outlets atmosphere, models, design and brand image compare with the competitors.

Therefore, Padini also need to employ some of the foreign designer to pump in some new blood in their new innovate design or pattern.

Padini also need to provide some training to their stuffs to enhance skill and knowledge. As we know that world change aggressively, competitors have born everyday. If we cannot plan to create the value chain to the company, the company will hard to survive prosperity.