Pepe Jeans

LONDON

MARKETING MANAGEMENT 2

Assignment :1

Divya (2018MBA0497)

Sahana (2018MBA0535)

Mahesh (2018MBA0513)

Akshay kumar(2018MBA0449)

Madan R (20182MBA0510)

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Acknowledgement

We would to express are gratitude to professor Sanjay sir from presidency university, for giving
this opportunity to make a report on Pepe jeans and giving us the ability and strength to finish this
project on time. We would also like to expand our deepest gratitude to all those who have directly
and indirectly guided us in writing this assignment. Many people, especially our classmates and
team members itself, have made valuable comment suggestions on this proposal which gave us an
inspiration to improve our assignment. We thank all the people for their help directly and indirectly
to complete our assignment.

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Summary of the report

PEPE jeans is is a international brand which manufactures jeans as their main product . PEPE
jeans London limited manufactures and sells clothing for women, men , teens ,and juniors . it offers
jeans, coats , jackets , knits , sweatshirts, tops , t-shirt ,dresses, skirts, shorts footwear and etc . we
can market segment according to age group , the target consumer for pepe jeans is teens/
youngsters . The brand has many competitors , such as levi’s , Lee etc. the pepe jeans has to come
up with innovative idea to improve they sales , as the profit or sale of the company is decreasing
due product price and quality , we can direct and indirect competitors for pepe jeans . we are able
to see the macro and micro environment of pepe which is very important about the porters five
force analysis which tells the pepe company where it lies , porters analysis shows the firms growth
rate , market share , where the product lies , who are the new competitors , how is the buying power
and the supply power , it tells about the market structure and competitors structure .

BCG matrix tells about the different product line of pepe jeans , as pepe main product is jeans ,
in jeans they have come up with new ideas ,it present the moain product , question mark , star
and dog .overall we can see the marketing strategy of pepe jeans , pepe jeans is going on a loss.
The company should come up with new idea or strategy to beat they competitors .

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INTRODUCTION ABOUT THE COMPANY

Pepe Jeans London is denim and casual wear jeans brand established in the Portobello road area
of London in 1973 by three brothers: Nithin , Arun and Milan shah from Kenya.Pepe jeans was
originally sold at a tiny market stall: it has now been transformed to more than half a US billion
dollar brand found throughout Europe.Pepe jeans is present over 100 countries and employs more
than 5000 employees all over the world. Pepe jeans has created a global brand awareness.

PEPE jeans London is one of the world’s largest fashion brands. With 300 stores on 5 continents
,it is also one of the most global . Add to that fact that the brand’s target audience is youngsters
.The company’s expansion really took off from the 1980s onwards ,when the brand become
popular across Europe . The started to incorporate new brands ,such as Tommy Hilfiger in 1985.
From that point onwards , “we have always been on the lookout for new brands to continue grow”.

Mission of pepe jeans

Pepe’s mission to create greener jeans The denim industry can be enormously
pollouting. In an attempt to lessen its environmental impact , pepe jeans is introducing a new
washing system to massively reduces energy consumption and waste.

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PRODUCT

Pepe jeans London encompasses two brands; Pepe jeans London and Pepe jeans Junior.

Pepe jeans London includes ladies and men complete collection including accessories .These
collections are created with a focus on quality in terms of the Fabrics, fit and finish, merging high
fashion attributes with ground level of pricing , and thus provides the look demanded by the market
. The collection ranges , genuine leather jackets , without forgetting its specialist , the Denim offers.
Within the denim we can underline the most premium part of it ;73 collection.

The company has design a Quick response collection and a precollection onces the key trends of
each season appears in the most important and other fashion hotspots which were easily adaptable
to the mass market , to meet consumer preferences.

Pepe jeans junior includes boys and girls complete garment and accessories collection.

These two brands are complemented by other product categories as footwear , eyewear or
stationery.

In this 45 years of the pepe jeans have created collaborated with some of the most relevant icons
that have always been linked with one diverse London roots .

Following in the footsteps of Kate Alex and Cara ,this time they have come up with Dua lipa.

Products of Pepe jeans

SL Women wear Men wear Kids

NO
1 Jeans Jeans and clothing Jeans
2 Clothing Footwear and shoes Clothes
3 Footwear Accessories Accessories
4 Accessories Editorial
5 Editorial Norton clothing

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Marketing environment
The environment of a company includes the actors and forces that effects its performance. The
marketing environment is divided in two parts ;

Micro environment

The micro environment of pepe consists of company , supplies, marketing intermediaries

,competitors ,publics, customer. The company is divided into some departments that includes
Human Resources financial affairs handling ,quality department , etc

The production of jeans includes the ingredients like fabrics , buttons, zips ,and machines for the
production of jeans. The competitors for pepe jeans are levis , provogue , Allen solly , Lee ,Van
Heusen. And the intermediaries are the distributors , retailer, wholesaler etc.

The machine are brought from Germany and Japan for manufacturing the product . The main
fabric supplies are Nergis textile mills and some of the materials like zip , buttons are are also
supplied by Lisa manufactures.

Macro environment

The company’s macro environment includes Demographic , Economic , Political , Culture ,

Technological environment.

The demographical environment of pepe jeans the study of human population in terms of size,
location, age , gender , occupation etc . They need develop product for both male and female .
Different price range and offers for various income group .

Economic environment of pepe jeans today consumer are seeking good quality and at affortable
price .

Political factors for pepe involves the tax rate , the changes in government , the price of the
consumers . The import and export rate , the interferences of local parties , over all the macro
environment of pepe jeans . they have operation almost in 100 + country . They market is wide .

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Consumer analysis
1) Political factors:

• The company is totally dependent on the imports from Singapore for its stocks. Hence, the change
in policies or the rules and regulations of the government like indirect taxes, quotas, restriction on
imports, has a direct impact on the company’s sales. • Due to political instability in the economy
of Nepal, there are often strikes and bandhs (when the business needs to be closes down) and this
has a direct impact on the sales revenue, rent and wages of the company. Even though, there are
bandhs and strikes the business still needs to pay the same amount of rent and wages as, it is on
the normal day, so these business costs with decreasing sales revenue affects the overall
profitability of the business.

2) Economic factors:

• Due to increasing inflation, there is a decrease in the consumer expenditure. The current inflation
rate of People have focused more on saving than spending. The saving rate of people has increased
from (37% of GDP, 2009) to (41% of GDP, 2012). As a result, this has affected the company
because; it consists of products with comparatively higher prices than other brands in the market.
So, this increase in inflation and saving rate may affect the overall profitability of the business, as
people nowadays want to purchase more in low price.

• There is an increase in the disposable income of Nepalese people, hence, the purchasing power
and an increase in living standard and quality of life due to inflow of remittance and increase in
per capita income. The inflow of remittance was marked Rs. 230 billion in the FY 2009-10, which
is estimated to be 19.4% of GDP.22 There is also a prediction that the per capita income of Nepal
will grow by 3.2 percent in the current fiscal year to US$735 from US$712 in the last fiscal
year.23As, there is an increase in income people shift their demand for normal goods to more
luxurious products like they tend to prefer branded products instead of normal goods. Currently,
the exchange rate is (1$=99.40 NRS). As the value of Nepalese currency is cheaper, or the
exchange rate is low the imports are expensive. This is a major threat to the company as it is
entirely dependent on the imports from foreign countries like Singapore.

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Hence, this low exchange rate increases the business costs. Similarly, the fluctuating exchange rate
also affects the business. There is an increase in interest rates of the bank due to increasing
inflation. So, it has been difficult for the company to borrow loans for the company, due to increase
in the cost of borrowing.

Similarly, even the provision of loans by the banks is extremely fluctuating. Hence, the company
has difficult in obtaining external source of finance. But, as it is a limited company it has a separate
legal identity and continuity. It also has assets and properties as a security, so banks tend to trust
the company. Even the status and the brand image of the company have helped it to maintain a
good relation with the bank. Hence, due to its credibility status it has been easier to obtain loans
in low interest rates.

3) Social factors:

• People like to follow trends they prefer international (European) brands like Pepe Jeans or Levi’s,
as it consists of denim and casual wear of the latest fashion trends so, this has a positive impact on
the company. But, Levis seems to be more fashionable as it has more update products, or the
products which are of latest trends like the curvy jeans. Levi’s offer jeans focusing more for trendy
and brand conscious customers with eyewear products. It is most recognizable for jeans pants
containing five pockets, copper rivet and buttons, red tab attached to the left rear pocket and a
leather batch at the back. Due to the increase in the living standard of the people, they have been
more brand conscious hence preferring more of international brand in order to maintain status in
the society. Roots Fashion has an advantage by exploiting the brand conscious and high-class
people.

4) Technological factors:

• Due to advancing technology, Research and development (R&D) has been easier in terms of time
and money. The company is able to easily identify market opportunities and conduct market
research.

• Due to emails, the company has been able to stay in contact globally. The order is being placed
through emails and even the agreements and meetings are made via the Internet.

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 • Due to social networking sites like Facebook, Twitter the company has been able to advertise,
enhance its brand image, develop brand awareness and is able to receive customer feedbacks.

Market segmentation

The pepe jeans segmented into following four segments;

Customers that lie in age group of

1)9 to 14 years

2)15 to 25 years

3)26 to 40 years

4)40 to 45 years

Pepe jeans is segmenting the market based on age factors because clothing specially jeans are
depends upon the likes and dislike according to age.

Marketing segment target

Internationally defined target market for jeans is 12-30 years age group , but due to high percentage
of teenagers and youngsters population ,we have revised our target market as follows

. Students with age group of 12- 25

. Professionals with age group 26-40

.Fashion conscious

.No specific income group

.Parties and fun loving people

.Quality conscious

.People wear jeans for these main reason

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 fashion

Durability

Target strategy
PEPE jeans grew international influence ,engagement through Facebook

PEPE jeans made some key changes to their Facebook strategy, starting with a shift to responsive
brand Facebook pages, which automatically adopt to show country specific content to users.
These types of pages ,which large companies have the ability to create , allows brands to run a
central international Facebook as well as multiple country specific pages that publish content in
different languages. This page detects users country and show them the correct page
automatically. Social content began to play a bigger role in their overall marketing strategy.

Target market of pepe jeans

Demographic description
15 to 25 years old and 26 to 40

Both male and female

Majority constitutes of school ,college and university students

fresh employees and married people are also a small part of target market

Taste of fresh plays an important role for buying jeans

Behavioral description
We want to fulfill our customer’s preferences for ;

Quality

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Fashion

Handsome look

Problem

Porter’s 5 forces model

Industry rivalry ;High

Nowadays , the competition is strong on the denim market . pepe jeans is threated by competition,
because barriers of entry are relatively low in the jean market . so there is wide range of brands
in the denim market; pepe , levi’s Diesel , Lee cooper ,Calvin klein , Tommy Hilfiger etc. Being
in the market leader , levi’s is profitable among four denim brand ; Pepe jeans , Levi’s ,Wrangler
and Lee in the denim market . The product portfolio of Pepe is not being updated hence fore,
stocks are not sold so rapidly as expected there; the stock turnover ratio is very low .

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In this way many consumers are easily switching to another brand especially since they are less
brand loyal. A new fashion in other firms has also impacted on the degree of competition with
maintaining their brand equity and endorsing their products both in stores and online .

The apparel companies who relied on wholesale distribution initially are rapidly moving towards
their retail outlets. This has future increase the problems of pepe jeans and company . all these
competitors have a capacity to entice the consumers even by low production costs. This is a serious
threat to the company’s sales and profit margins.

Potential of new entrants

The apparel industry has very minimal government regulation and policies in every country. The
entry barriers are very low which results in rapid increase in numbers of new competitors . pepe
jeans as an advantage of first in terms of location of outlet and brand equity but the cost and high
profis.

The company also faces threat from the private labels who attract the customers for their
affordable price and average quality .

Power of suppliers
The raw material that is needed by the company is cotton , blend , wool and synthetics. Everything
besides cotton is available in abundance along with their suppliers over the company . However
of cotton the availability fluctuates throughout and is dependent on several factors like weather ,
acreage devoted to its growth , government policies and regulations on agriculture, energy price ,
work stoppage , supply condition and transport costs . all of these factors influences the price of
the company ‘s products and consequently affects its sales .

The company runs on outsourcing . It relies on independent contract manufactures for 97% of its
products who purchase their fabrics and make their products . They have the power over company
as they are to free to terminate their contact anytime they want.

Power of buyers

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The company’s products are sold in more than 100 countries . pepe is very much reliant on itsd
sales to the whole sale customers . They made up about 31% of they total net revenues in 2014
,2015, and 2016. No other customers represented event the 10% of they sales. While relying such
heavily on the wholesale market , pepe jeans doesn’t s have long term contract with the wholesale
customer. As a result , either of the parties are free to terminate their own business dealings with
each other . if the whole sales decided to end its contract with the company or reduce the floor
space . , the company suffers a lot . the bargaining power of the consumers is high .

Threat of substitute products

The switching costs to other affordable jeans wear is next to none. The treat of substitute products
is likely to be very high, as the competition is increasing in the apparel industry . the treat to switch
to causals and winter wear depending on the mood of the customers.

We see more opportunities for growth for Levi’s than Pepe Jeans though both are denim
brands. Levi’s tend to be dominating the market, and holding the highest position of a market
leader and this is the reason why we plan to focus more on Levi’s.

The price ranges from Rs. 5000 to Rs. 9,000 for the more exclusive segment of jeans of Levi’s.
And, for the exclusive segment of jeans of Pepe Jeans, the price ranges from Rs. 3000 to Rs. 6000,
whereas other products like shirts, t-shirts are reasonably priced

Competitors analysis
Being a market leader, pepe jeans profitable7 among four denim brands: Levi’s, Pepe, Wrangler
and Lee8 in the denim market of Nepal. Pepe and Levi’s were introduced in the same year and
until 2010, both of these brands were going head to head. Levi’s has been constantly updating its
product portfolio hence attract new customers and increase consumer loyalty by meeting the
changing consumer needs and wants through its latest fashionable products.9 This has resulted to
high footfall of customers10 in the retail outlet of pepe jeans.

Whereas the product portfolio of Pepe is not being updated, hence the stocks are not sold so rapidly
as expected therefore, the stock turnover ratio is very low.11This not only increases the stock
holding costs as the stocks have to be held in secure warehouses, but due to piling up of stocks for

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a long time period there is generation of quality issues related to material.12Like the jeans of Pepe
seem to fade away and lose its original quality and shape. Therefore, there is fall in loyal customers
as customers feel that the products are not worth the price charged

prices are competitively priced and the price set is not able to cover the cost of production and
generate adequate profit though, there is no loss situation. This decrease in the price level14,
increase in stock holding costs and the unit cost of production due to diseconomies of scale because
of decreased sales revenue at the maturity phase, with the rising trend of inflation rate15 has led
to an increase in costs thus, less contribution towards fixed costs. Similarly, for, every Rs.100
worth of sales the amount of gross profit generated was Rs. 40.13 in the year 2013, a decrease in
21.6% from the year 2011.

However, Pepe is contributing more but this is because it has a wide product range and covers a
large area of the retail outlet compared to Rockport. By looking at Pepe from the aspect of per
square ft. it has not been effective in generating revenue to the space being occupied 16. Indeed,
Rockport has covered less area and is generating more revenue with a limited product range.

Though, Pepe contributing less compared to Levi’s and Rockport, it is a part of range of brands
operated by Roots, hence dropping it would reduce the appeal of Roots. However, operating the
brand just because there is no negative contribution, deprives the company from launching a new
brand, which could make even greater contribution though, it is difficult to launch new brand in a
short run. 3.3 Pepe Jeans in global (Indian) market:

Pepe jeans has been compared with the Indian market as both of the country lies in Asia, hence
follow similar market structure and social trends. In the Indian market, Pepe is the market leader
in premium jeans and casual wear space. The company has a positive brand image leading to high
footfall of customer in the retail outlets, hence increased sales revenue. Currently , it’s turnover is
Rs. 250 crores (NRs. 400 crores), and it has projected to double it in the next two or three years.17
3.4 Impact of dropping Pepe Jeans: On Rockport’s performance:

Consumers hold a positive perception towards Rockport due to its appealing products. But as there
is negative perception towards the products of Pepe, which operates in the same retail outlet, there

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are negative implications to Rockport, though the retail outlet has an ideal location.18 However,
Rockport would not be able to fully justify allocation of the entire floor space of the retail outlet
with its limited products and bear all the costs alone, Hence, the retail outlet might need to shut
therefore, even Rockport would not be able to operate in the market until a new brand has been
launched

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 SWOT ANALYSIS
STRENGTHS WEAKNESS

1 A multinational brand 1 source of distribution is retail outlet

2 loyal customers 2 The price of the product is higer.
3 Sole distributor 3Employees Demotivated
4 Corporate image 4 Political issues
5 Location of retail outlets (easily accessible by
the majority of customers or situated in places
where people gather more )
6 Signed international celebrity brand
ambassadors
OPPORTUNITIES THREATS

Updating the product portfolio Duplicate products

Competition in the market emerging ( there are
Expansion of distribution channels ( E- currently three competitors for pepe jeans so there
Commerce or retail outlets is industry rivalry
Decreasing in the production of cotton which has
Product range expanding lead to increase in cost of production. As the
Collaborating with other brand resources needed to make denim is scarce.
load shedding problem(no electricity) leading to
higher cost(cost of generators and fuel expenses)

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The strength comprise of high quality products, a multinational company . The employers are
highly skilled and experienced , but as all them belong to Nepalese ethnic groups, they seek
holidays in important events . It has also a strong and renowned brand image due to which there
are loyal customers and the retail outlets are fixed in place , which is easily accessible by the
majority of customers . The weaknesses are that , the only sources of distribution is retail outlets,
there are no facilities of E-commerce so consumers do not benefit from accessing the products
from anywhere at anytime . This even affects the sales revenue so I understand the potentiality of
making e- commerce strategy though the initial cost are high .

The price of the product are also high , as the import costs are high and due to high quality
material. Not only limited product ranges, but there also political issues regarding legislation and
the bands and strikes affect the company overall is the main resources for the production of cotton
. Due to decrease in the production of cotton , there is increase in the price of cotton , hence increase
in the cost of production of the company .

BCG MATRIX

Star Question mark

Cloths Accessories

Cash cow Dogs

Jeans Footwear

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The chart or graph is divided into 4 category . These are the cash cow , the dog , the star ,and
question mark . a product line of a business unit is based on its relative market share and rate of
the growth in the market and falls within one of these categories .

Jeans is the cash cow of pepe jeans because it generate more revenue comparing to the other
product of pepe jeans . pepe jeans has come up many with different kinds of jeans , they have low
wrist jeans , tone jeans ,pencial fit jeans , comfort jeans skinny jeans etc .pepe jeans have higher
market share in a slow growth industry very little investment is needed to manufacture this jeans .

Footwear are generally considered as dog in BDG matrix because the footwear is considered to
be doubt . PEPE jeans is considered as jeans manufacture company , footwear are divested by the
company most due to poor scale in saturated market .

Clothing is star in BCG matrix . start are those business units that have a large market share in a
fast growing industry. These product line have a clearly visible market or niche leading part and
requires large amount of funding of competitors and marketing for growth rate

Marketing 4ps
Marketing mix of pepe jeans analysis the company / brand which overs the product , price, place
and promotion and explains the pepe jeans marketing strategy

a)Product

pepe jeans is global clothing brand , which is is know for its denim wear. Pepe jeans product
promise gives a taste of London , with tag line “ strength with age “.

On olden days it focused on young men and women , with its offering in summer winter causal
wear. The denim product provide this brand with most value.

It has slowly ventured into kid section also . it popularity is in providing deogins that all rebellious
and icon elastic or innovation . The pepe website also offers to design one’s own denim products
with text graphic .

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The brand has constantly ventured into new products and stood out for its design . Hence the
product of pepe jeans target the young at heart people, with a classy rebellious taste ,with
innovation design and option to design .

b)Price

pepe jeans offers high quality denim wear at affortable price , the pricing strategy in the marketing
mix is matching with the market cost. clothing industry basically being an ever growing industry
with many competitors coming up , has a very low switching cost.

To sustain in the highly competitive retail industry . pepe jeans differentiates itself by providing
better quality at leaser cost. In customer perspective pepe jeans is brand with quality better than its
competitors and pricing equal to them . it gives the customer the option to customers . the denim
in India are of the range rs 999 to 4999.which captures most of the upper middle class market.

c)Place

PEPE jeans have very presence around Europe and most sales there take olace in their stores,
around other continents they have presence in 100+ countries with products available in both self
branded store and malls with others product . pepe jeans was against hanging the jeans and got it
into a fight with retailers for this very reason .this shows how the brand not only values its product
innovation but the placement of the product , the product demands are relaised by supplies around
6 month in advance

d) promotion

pepe jeans uses almost all channels of media to advertise and market itself most events surround
the likes and trends follow by the young men and women and it also sponsors event related to
sports , fashion awards & cultural mix events, associating itself with London it the same cultural
mix and extraordinary uniqueness of the city its clothing line.

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Scope of the problem

Pepe Jeans had recently conducted a survey with the independent retailers. From the survey,

Pepe has received a number of complaints from their retailers and this concerned Pepe Jeans.

The following were some of the retailers’ complaints:-

• Pepe has become less of a trend setter than in the early days

• Retailers are unhappy with Pepe’s requirements to place orders 6 months in advance with no

possibility of amendments, cancellation, or repeat ordering.

• The inflexible order system forced retailers to order less resulting to stock outs of particular

sizes and styles. The retailers estimated that Pepe’s sales would increase by 10% in sales

with a more flexible ordering system

Purpose of the Study

First is to find out how the retailers were affected by the current system and second is to find

alternative solutions to solve the retailers’ complaints and come up with recommendations for

Pepe Jeans to implement.

Summary of findings

• The six months ordering time made it difficult for retailers to accurately forecast and order.

• The fashion market is very impulsive and therefore the current favorites are not in vogue 6
months in the future

• When demand exceeded expectations it took a long time to fill the gap

• The retailers wanted some limited returns, exchange, or re-ordering to overcome the

problems.

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Expected result
• Reduced Lead Time

• Possibility of amendments, cancellation, or repeat ordering for the Retailers

• Have more robust designs that set trends like it used to be

Pepe Jeans other solutions.

Pepe Jeans can continue using the current business model since they are still very successful and
economically strong. The problem with Pepe using the current system is knowing when this model
will stop being successful due to complaints that Pepe has received from their retailers considering
how fast the clothing industry changes this could occur over in such a short that Pepe would not
be able to reverse the situation. This could result to losing their market share, losing the value of
the brand, and losing the retailers which would make it difficult to do business in the future.
Immediate measures are appropriate to ensure the said possible consequences do not occur to Pepe
Jeans.

What has been done (or is being done) to solve similar problems Looking at the history of
business, it has proven that when business organizations do not adopt changes in the environment,
that organizations will almost always fail. Taking an example of a company like Blockbuster LLC,
this was one of the biggest American provider of home movie and video game rental services.
Blockbuster business model was based on providing these entertainment content through their
rental shop and later on through mail delivery. Because of changes in technology, most of their
customers started to demand faster access to the entertainment contents as other content
entertainment providers were doing. The new providers, the like of Netflix, started providing
content entertainment to their customers on demand and in the privacy of their own home.
Customers were able to receive services at close to no lead time at all. Blockbuster did not make a
fast enough change into this new technology for delivering services.As a result almost all of their
clients left them. Blockbuster later on changed their business model to include the on demand and
video streaming services, but it was too late.

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Solutions that Pepe Jeans could implement to solve the retailers
complaints.
Alternative solutions.

Shorten of time with the current suppliers Pepe Jeans sourcing agent from China where they
manufacture their jeans suggested an option of reducing time while using the same suppliers.
Implementing this option will increase the cost by 30% above the current cost. If Pepe Jeans
decides to take up this option, lead time will be reduced to as little as six weeks. This reduction of
lead time will most definitely solve the problem which are faced with the local retailers in United
Kingdom. While this option may lead to revenue increment of 10% the extra cost will be recurring
with each placed order. Currently the yearly cost of sales is 40% of sales of £ 200 M that is £ 80
Million . If the cost goes up by 30% it would mean 30% of £ 80 Million which is £ 24,000,000. In
return for this increase in cost the company could make an approximate increase in in revenue of
10% will be £ 20, 000 000 (10%x £ 200 000 000) and the PBT of £ 6,400,000 (32% of sales).
For this option, cost outweigh benefit by £ 17,000,000 each year.

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CONCLUSION AND RECOMMENDATIONS

Pepe Jeans to switch to new suppliers will be a good strategy in the long run. However, it will
take some time to establish the best system that will be beneficial to both Pepe Jeans as well as the
new suppliers. With new suppliers, the initial production might take longer time since they will
need some time to adjust their activities to get close lean manufacturing.

However, I feel that Pepe Jeans is definitely facing a lot of competition from Levis, Diesel and
other well-known jean companies. So I would suggest Pepe Jeans to come up with more innovative
range of designs, for example Levis has a range of jeans which emphasizes on curvy women, which
has gained a lot of attention from many people, since they feel that its not the size that matters but
the shape. So Pepe jeans would definitely have to get their game on, by coming up with similar
strategies which would help gain attention from more and more people.

Since Pepe Jeans does not have any control over the manufacturing and supply of their products,
the suppliers/manufacturers might promise six weeks and end up delivering later than six weeks.
This inconsistence would not sit well with the retailers. It would be very helpful if Pepe Jeans
made an agreement with the suppliers about a late delivery penalty of a certain amount. This
penalty will provide a better

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Take away from this report

This assignment of the firm pepe jeans which is international brand , having brand across the globe
. This assignment has given me knowledge about the brand pepe jeans . This particular industry of
clothes never fails because it is need for everyone , and we can see how pepe jeans are using
different product , what are all the products available . There are almost 15 to 20 types of jeans
they manufacture . the life cycle of the product we can see . we have seen strength , weakness ,
opportunities and threats of pepe jeans . we have gained more knowledge how the business is
running and competing with other business .we are seen the marketing four piece , the product,
place, price and promotion.

Mostly from this report I have learnt how the marketing cycle , BCG matrix happens , clear
information about portals five force , which lead us to think in different .This report has made all
the topics clear . which we can plan according and work like it .and it has made me think deeply
about different product , I am able to understand the market changes , the consumer needs and
changes .

The business pepe jeans brand has the value and name frame , The company should update
according to the technology and generation . Even they brand loyalty , if the company doesn’t
update it may fall off , the firm should look after the price because the brand should be available
to everyone , then the customers increases.

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REFERENCES:

Cotteleer, Mark and Elliot Bendoly, “Order Lead-time Improvement Following Enterprise-IT
Implementation: An Empirical Study.”

“IBISWorld Industry Report C1311-GL: Global Apparel Industry” web:

<http://clients1.ibisworld.com/reports/us/industry/currentperformance.aspx?entid=349>

Jacobs, F. Robert and Richard B. Chase. Operations and Supply Chain Management: Thirteenth

Edition. McGraw-Hill/Irwin, New York, NY, 2011.

Sherman, Lauren. “Who Makes The Clothes On Your Back?” Forbes, May 2008. Web:
<http://www.forbes.com/2008/05/25/style-clothes-foreign-
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Pepe Jeans Official Website web: <http://www.pepejeans.com/en_gb/>

“Top 10 Destinations for Clothing Manufacturers.” September 2017. Web:

<http://www.thesourcingplace.com/top-sourcing-destinations-for-clothingmanufacture

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