PROJECT MARKETING

UNIVERSITY OF CENTRAL PUNJAB

SPRING 2024

Course Title: STRATEGIC MARKETING

Course Code: BAMK 7193

PROJECT PRESENTATION

Course Instructor: REHAN MEHMOOD

Section: E1 Program: MBA Date: 29 MAY 2024

Submission Date: 10-07-2024 Maximum Marks: 100

Program Objective: 1,2,3 Course Objective: 1,2,3 Course Learning Objective:1,2,3

TO BE FILLED IN BY THE STUDENT

Student Name: Registration No: Sr. No:
1. M SAAD TARIQ L1S24MBAM0012
2. AGHA MEHMOOD QASIM L1S24MBAM0022
3. HAMZA AYAZ L1S24MBAM0010
4. GUL NAWAZ L1S24MBAM0016

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TABLE OF CONTENTS

 PROJECT SUMMARY
 VISION AND MISSION
 INTRODUCTION OF ORGANIZATION
 CRITICAL SUCCESS FACTORS
 PESTLE ANALYSIS
 MARKET ANALYSIS
 SWOT ANALYSIS
 BLUE OCEAN STRATEGY INTRODUCTION
 STRENGTHS AND WEAKNESS
 BLUE OCEAN APPLYING
 BLUE OCEAN IMPLEMENTATION
 STARTEGY CANVAS RED AND BLUE OCEANS
 CONCLUSION

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PROJECT SUMMARY:

The purpose of this report is to basically show that how Khaadi does its marketing and
to elaborate the blue ocean strategy for Khaadi. Basically Khaadi was established as a
clothing brand but in some years of its success it has become a huge global giant. But
now a day the Khaadi is in the red ocean world where competition is much higher and
sales are dumping down.

In 1998, founder and Chief Executive Officer, Shamoon Sultan, set out to revive the
ancient craft of the handloom. What began as a single store start-up in Karachi,
Pakistan has quickly transformed into a robust brand with international presence.
Khaadi was built on drive and passion and that same energy is passed on to all new
talent joining our team. Khaadi is an Urdu word which means ‘hand-woven’. Khaadi
with 60 stores at almost every notable location and in all major malls across the
country. They employ over 1,500 people in Pakistan. Khaadi aims to expand further,
and faster, with a focus on large-scale retail stores. They are simultaneously
streamlining their operations and pushing the limits of design innovation. By hiring
creative individuals with a desire to learn and the readiness to take on challenges,
they’ll continue on this growth trajectory to create their global presence.

VISION:

To make a global Pakistani organization creating experiences beyond fashion.

MISSION:

Passionately drive growth by constantly designing and innovating products and experiences
for the ever-evolving human needs and aspirations.

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INTRODUCTION OF ORGANIZATION

Khaadi is basically a Pakistani fashion and lifestyle brand. It is a company that

provides hand woven clothing for women, men and children. It not only provides
clothing but also sells apparels and home furnishing products. The CEO and founder
of Khaadi is Shamoon Sultan. He laid foundation of Khaadi in 1998 in Karachi and
sooner it turned out to be one of the most successful clothing brand. Currently it is
operating 63 stores in 30 different cities of Pakistan. It has expanded itself globally
and is also operating 22 stores in UK as well as in UAE, Malaysia and Europe.

INDUSTRY INTRODUCTION:

A retailing industry is basically depending on selling of products from a permanent

location which is termed as a retail store or outlet. It is basically a B2C nature of
business. This industry mostly contains products that are for personal or family use
or commonly used in life. The retail industry is a sector of the economy that is
comprised of individuals and companies engaged in the selling of finished products
to end user consumers. The main purpose of this industry is to sell merchandise or
certain services to end consumer directly. This is one of the oldest type of business
industry and one of the most common as well.
According to Punjab Board of Investment and Trade, Retail sector is the third
largest sector in Pakistan. It is the second largest employer, employing around 16-
20% of the labor force.
According to the report of Economic Survey of Pakistan, the sectoral share of
Services in GDP for FY2023 is 52-55 percent.
Today, the industry includes everything from small local businesses to global
retailing giants. Their stores take various forms, including self-run websites,
independent outlets, and shop fronts in large, high-traffic malls. In many cases, this
‘customer-facing’ facet of the business is supported by an enormous behind-the-
scenes operation staffed by professionals with managerial, marketing, administrative,

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and other responsibilities. The retail industry covers an enormous range of consumer
needs. The retail industry is designed to create contact efficiency—allowing shoppers
to buy what they want efficiently with a smaller number of
transactions. This design doesn’t come from a master retail plan. It’s driven by market
forces. When a retailer sees an opportunity to expand its offering to increase
purchases from customers in one location, it will expand its offering to meet the
opportunity.

CRITICAL SUCCESS FACTORS

There are different critical success factors for Khaadi which are stated as follows:

 They make sure that their products are always up to date and as per the
latest trends in clothing culture of the society.
 They continue blending eastern and western styles and going for something new.
 One of the most important critical success factor is of their fabric quality as
Khaadi is known for its hand woven clothing so they are always careful that
they don’t make any negligence regarding this.
 They stick to the culture of the demographics in which they are operating.
 As it is a retailing company so they maintain their websites and online
shopping platforms as it is one of most important demand of customer these
days in this type of industry.

PESTLE ANALYSIS

 Political factors
It is obvious that politics play a role at some level in almost all businesses and
industry. Khaadi is a retailing company and political factors affect them too.
As policies and budget made by the government plays an important role. The
taxes and other sanctions affect the sales of the products. If there is no political
stability in the country, then it will ultimately lead to less sales.

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 Economic factor
Any big change in the economy highly affects retailing industry as it is the 3 rd
largest industry in the country and contributes a lot in the economy of the
country. But they also have to pay more taxes than any other industry in the
country. Khaadi can have a danger as per this situation if the economy of the
country goes down.

 Socio-culture Factors
There is a strong relation between our selected brand and the society. As
Khaadi is providing closet so it should be as per the society and its culture. In
this industry the social factors play the most important role as all customers
related to this type of industry are strongly attached to their specific culture and
social norms. Hence social factors have a great influence over the selected
brand.

 Technological Factors
From a long time, we have seen that technology has entered in almost every
industry. In retailing business technology is playing a very important role
in these days such as online shopping platforms and online marketing
tactics. So it is important that we stay updated in technology as without
technology we cannot compete with competitors in industry.

 Legal Factors
For almost all industries have many legal factors that affect them directly or
indirectly. These can be either labor laws, taxation laws, allegations and other
official matters. The retailing industry is also affected by legal factors such as
if taxation laws are too complex like in our country then there is difficulty in
running business smoothly. Labor cost can also be affected by any amendment
in law. So legal factors can also affect the selected industry.

 Environmental factors
Although environment factors don’t affect all business in a retailing
industry but there are some specific products that are influenced by

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environmental factors. Just like our selected brand Khaadi is influenced as

there are different seasons in year and they have to maintain their product
line as per all those environmental factors.

MARKET ANALYSIS

Pakistan’s retailing industry is growing rapidly as compared to other industries in the

country. Khaadi has a diverse and a specific market segment in retailing industry. As
retailing industry is getting stronger day by day so it means that there are more new
competitors entering the market each day. The Pakistani retailing industry has seen a
growth of 75-85% between FY2023 contributing 50-60% in GDP. This indicates that
retailing market is strong at the moment.

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SWOT ANALYSIS

Strengths WEAKNESSES

1. Weak clothing line for men.

1. Strong brand image
2. Cost structure
2. Strong financial position
3. Tremendous market positioning
4. Adequate financial resources
5. Rich in culture

Opportunities Thr
eats
1. Keep exploring the new pallets.
1. Intense competition
2. Experiment and focus on silks.
2. Covid-19 pandemic
3. Recession

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Blue Ocean Strategy for Khaadi Pakistan

Introduction

Khaadi, a renowned Pakistani fashion and lifestyle brand, has significantly shaped the local
market since its inception in 1998. Known for its vibrant and culturally rich designs, Khaadi
has carved a niche in a highly competitive industry. However, to sustain and grow in the
dynamic global market, Khaadi needs to innovate continuously. The Blue Ocean Strategy
(BOS), offers a framework for achieving this by creating new market spaces and making the
competition irrelevant. This project explores the application of the Blue Ocean Strategy to
Khaadi, identifying potential opportunities for the brand to expand and differentiate itself
further.

Understanding Blue Ocean Strategy

The Blue Ocean Strategy focuses on creating uncontested market space, making the
competition irrelevant, and breaking the value-cost trade-off. Unlike the Red Ocean, where
companies compete within the existing market boundaries, the Blue Ocean Strategy encourages
businesses to reconstruct market boundaries and focus on innovation. The key principles
include:

 Reconstructing Market Boundaries: Look across alternative industries, strategic groups,

buyer groups, complementary product and service offerings, functional-emotional
orientation, and time.
 Focusing on the Big Picture, Not the Numbers: Visualize strategy and focus on the big
picture rather than being trapped in operational details.
 Reaching Beyond Existing Demand: Unlock new demand by converting non-customers
into customers.
 Getting the Strategic Sequence Right: Ensure the commercial viability of blue ocean
ideas by following a specific sequence: buyer utility, price, cost, and adoption.

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Khaadi's Current Market Position

Strengths

 Brand Recognition: Khaadi is a well-established name with a strong brand presence in

Pakistan and internationally.
 Cultural Appeal: Khaadi’s products reflect Pakistani heritage, appealing to a wide range
of customers who value traditional designs.
 Product Range: The brand offers a diverse range of products, including clothing,
accessories, and home textiles.

Weaknesses

 Intense Competition: The fashion industry in Pakistan is highly competitive, with

numerous brands vying for market share.
 Limited Innovation: While Khaadi has a strong product line, there is a need for
continuous innovation to maintain consumer interest.
 Supply Chain Challenges: Ensuring a seamless supply chain can be challenging,
impacting product availability and customer satisfaction.

Applying Blue Ocean Strategy to Khaadi

Reconstructing Market Boundaries

1. Exploring New Product Categories:

 Active wear: Introduce a line of active wear that combines traditional designs with
modern, functional fabrics. This can cater to the growing fitness and wellness trend.
 Sustainable Fashion: Develop a range of eco-friendly clothing using sustainable
materials and ethical production practices. This will attract environmentally conscious
consumers.

2. Expanding into New Geographic Markets:

 Middle Eastern Market: Leverage the cultural similarities and existing brand
recognition to expand into Middle Eastern countries.

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 Western Markets: Create fusion lines that blend Pakistani designs with Western fashion
trends, appealing to a broader international audience.

3. Innovative Retail Experiences:

 Pop-up Stores: Establish temporary stores in key locations to create buzz and reach new
customers.
 Virtual Reality (VR) Shopping: Implement VR technology to offer immersive online
shopping experiences, allowing customers to visualize products better.

Focusing on the Big Picture

1. Strategic Visual Planning:

 Visual Strategy Maps: Create visual strategy maps to outline the company’s long-term
goals and identify the steps needed to achieve them.
 Customer Journey Maps: Develop detailed customer journey maps to enhance the
shopping experience and identify pain points.

2. Investment in Technology:
 E-commerce Platforms: Enhance the online shopping experience by investing in user-
friendly e-commerce platforms.
 Data Analytics: Utilize data analytics to understand customer preferences and tailor
marketing strategies accordingly.

Reaching Beyond Existing Demand

1. Targeting Non-Customers:
 Youth Market: Create trendy and affordable collections aimed at younger demographics
who may not traditionally shop at Khaadi.
 Male Market: Expand the product line to include more options for men, such as casual
wear and accessories.

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2. Collaborations and Partnerships:

 Local Artisans: Partner with local artisans to create unique, limited-edition collections
that highlight traditional craftsmanship.
 International Designers: Collaborate with international designers to infuse fresh
perspectives and appeal to a global audience.

Getting the Strategic Sequence Right

1. Buyer Utility:
 Enhanced Customer Experience: Focus on creating a seamless and enjoyable shopping
experience, both online and offline.
 Product Innovation: Continuously innovate the product line to offer unique and
valuable items.

2. Pricing Strategy:
 Competitive Pricing: Ensure that the new product lines are priced competitively to
attract a wider audience.
 Value Proposition: Emphasize the unique value proposition of Khaadi’s products, such
as cultural authenticity and high-quality craftsmanship.

3. Cost Management:
 Efficient Supply Chain: Streamline the supply chain to reduce costs and improve
product availability.
 Economies of Scale: Leverage economies of scale in production to maintain
profitability while offering competitive prices.

4. Adoption:
 Marketing Campaigns: Launch targeted marketing campaigns to raise awareness about
new product lines and market expansions.
 Customer Feedback: Actively seek and incorporate customer feedback to refine
products and services.

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Implementation Plan

Short-term Goals (0-1 Year)

1. Market Research:
 Conduct market research to identify potential new product categories and geographic
markets.
 Analyze customer feedback to identify areas for improvement in the existing product
line.

2. Product Development:
 Begin developing new product lines, such as active wear and sustainable fashion.
 Establish partnerships with local artisans and international designers.

3. Technology Upgrades:
 Invest in enhancing the e-commerce platform and integrating VR shopping experiences.
 Implement data analytics tools to better understand customer preferences.

Medium-term Goals (1-2 Years)

1. Market Expansion:
 Launch new product lines and test them in select markets.
 Establish a presence in the Middle East and Western markets through pop-up stores and
online channels.

2. Brand Building:
 Run marketing campaigns to promote new product lines and market expansions.
 Host events and collaborations to increase brand visibility and customer engagement.

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3. Supply Chain Optimization:

 Streamline the supply chain to ensure efficient production and distribution of new
product lines.
 Explore sustainable and cost-effective production methods.

Long-term Goals (2-3 Years)

1. Global Presence:
 Establish a strong presence in key international markets.
 Continuously innovate and expand the product line to maintain a competitive edge.

2. Customer Loyalty:
 Develop loyalty programs to retain customers and encourage repeat purchases.
 Regularly update product offerings based on customer feedback and market trends.

3. Sustainable Practices:
 Commit to sustainable practices in all aspects of the business, from production to
packaging.
 Educate customers about the brand’s sustainability efforts to build trust and loyalty.

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STRATEGY CANVAS RED OCEAN

STRATEGY CANVAS FOR BLUE OCEAN

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COMPARISON STRATEGY CANVAS

Interpretation of Strategy Canvas in blue ocean

 Product Range: Khaadi leads with a high variety of products.

 Quality: Khaadi's quality is competitive, but in blue ocean needs more quality.
 Price: Khaadi is high range and have to reduce cost as well
 Brand Image: Khaadi has a strong brand image, higher than most competitors.
 Store Ambiance: Khaadi's store experience is positive
 Online Presence: Khaadi has a robust online presence.
 Innovation: Khaadi is innovative.
 Customer Service: Khaadi has good customer service

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CONCLUSION

The Blue Ocean Strategy provides Khaadi with a roadmap to innovate and expand its market
presence. By exploring new product categories, entering new geographic markets, and
enhancing the customer experience, Khaadi can create uncontested market space and achieve
sustainable growth. Implementing this strategy requires a focus on long-term goals, continuous
innovation, and a commitment to understanding and meeting customer needs. With these
efforts, Khaadi can transform from a leading local brand into a global fashion powerhouse.

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