National Institute of Fashion Technology

HYDERABAD
Master of Fashion Management (2013-15)

SUPPLY CHAIN MANAGEMENT & E-BUSINESS ASSIGNMENT 1 REPORT ON SUPPLY CHAIN PRACTICES OF

Submitted By:
SANSKRITI VARMA (29)

Submitted To:
PROF. A SRINIVASA RAO

CONTENTS COMPANY OVERVIEW PRODUCT OFFERED BY PROMOD EXCELLENT SUPPLY CHAIN SUPPLY CHAIN STRUCTURE APPAREL SUPPLY CHAIN THE SUPPLY CHAIN AND SUPPLIERS OF PROMOD SUPPLY CHAIN OF PROMOD TRENDS AND DRIVERS OF SUPPLY CHAIN OPPORTUNITIES OF SUPPLY CHAIN RETURNS AND MARK DOWN DEMAND FORECASTING AND PLANNING GLOBALISATION AND FUNCTIONALITY PUSH AND PULL VIEW FINANCIAL AND INFORMATION FLOW COMPETITORS TO PROMOD ANALYSIS OF RETAILING MIX SWOT ANALYSIS BIBLIOGRAPHY

COMPANY OVERVIEW
Promod was created in 1975 as a French family boutique dedicated to the sharp design, the production and the retailing of women's ready-to-wear and original accessories. Promod dresses up and down all modern women that are looking for affordable, feminine and easy-to-wear fashion. The-inspiring collection offers a wide range of frequently updated items from more timeless seasonal must-haves to more cutting-edge designer-inspired fashion pieces. Promod collections aimed primarily at women 20 to 30 years, modern and active, seeking a fashion accessible and quality, not too classical or too sharp, and they will by its variety and its renewal to combine clothes to its own inspiration. Additionally, Promod has its own clothes designers that create some 3,000 models a year for all your fashion moments: work, evenings out, casual wear. Promod has 3 000 members of staff, of whom more than 90% are women. So it is really a women-oriented company, which supplies the women with fashionable clothes over the world. In all, Promod's brand success depends on the team's strong personal values: customer insight and a shared love of fashion with lots of entrepreneurial team spirit! Promod has been established in many Main countries such as France Spain, Greek, Italy, Germany, China, Poland, Czech Republic, Hungary, Switzerland, Belgium, UAE, India, Portugal, Austria, Russia, Malta, Lebanon, Luxembourg, Morocco and etc. In the coming years, Promod aims to accelerate its international development, in new geographic areas and in those where it is already present. Promod believes "the pioneering spirit is at the heart of fashion! The company of Franois-Charles Pollet was born in 1975, following a very simple observation. "Women love fashion, novelty and change" Promod offers services easy-to-wear couture ranges reflecting today that can be mixed in the wardrobe of women to create their own unique style.

Clothing and fashion accessories offer affordable quality that allows women today to update his style on a regular basis - especially because Promod introduces over 100 new items every two weeks and an average of 12 mini collections every season.

PRODUCT OFFERED BY PROMOD

The company offers its products through its chain of stores as well as online. Promod SA was founded in 1975 and is based in Marcq-en-Baroeul, France. Promod SA is committed to designing, producing, and selling ready-to-wear and accessories for women in France and abroad. It offers tops, dresses, sweaters, shirts, jackets, pants, skirts and coats and shoes and jewelry. Top Dresses Knitwear Shirts/ tunics Jackets Trousers Jeans Leggings Cropped trousers Skirts Coats Footwear Accessories Jewelry Fragrances Shorts

EXCELLENT SUPPLY CHAIN Business strategy

Complementary Operating model

Operational objective

Tailored business processes Fit Consistent Reinforcing Cross- optimized Enabling capabilities Organization Technologies other
Framework of excellent supply chain

SUPPLY CHAIN STRUCTURE

The textile and apparel channel consists of different components. The industry is composed of six different segments: fiber producers, textile mills, apparel manufacturers, apparel companies, wholesalers and retailers of apparel. In addition, trading companies play the role of intermediaries at various stages of the chain. Segments of channel are supported by related industries such as textile and apparel machinery, and chemicals used in manufacturing and finishing fabrics
FIBER PRODUCERS TEXTILE MILLS APPAREL MFG. APPAREL CO.

WHOLESALE R

RETAILER

PRODUCTION STEP IN APPAREL PRODUCTION

APPAREL SUPPLY CHAIN

Production steps in apparel production begins with agricultural and chemical suppliers, who provide natural and synthetically fibers Many different types and sizes of firms supply natural fibers such as cotton and wool. The natural fiber suppliers are very fragmented and are located both within the UK and outside. For example, many countries including India and a few countries in South America specialize in cotton production; Australia specializes in wool production, etc. Some U.S.-based firms like Du Pont produce large supplies of synthetic fibers and hold the majority of the shares in the market, although developing nations like China and Taiwan offer significant competition. Next in the chain are textile firms, which are responsible for spinning fiber into yarn, knitting and weaving operations. These firms make fabrics from yarns.

This part of the chain is highly fragmented and most of these companies are small-to-medium-sized worldwide. Once fabrics are made and finished they are sent to apparel manufacturers to make finished apparel products. A highly labor-intensive assembly characterizes this part of the industry process and low barriers to entry (and exit). As a result, a large number of small and medium- sized enterprises (SMEs) have sprung up in many low labor cost countries. Finished apparel products are sold, either directly or through wholesalers, to a variety of retail outlets
FINISHED FABRICS

FIBERS

YARNS WEAVING OR KNITTING

GREY FABRIC S DYEING,PRINTI NG AND FINISHING

FIBERS

CUT GARMENT PEICES CUTTING SEWING

FINISHED GARMENTS

APPAREL SUPPLY CHAIN

THE SUPPLY CHAIN AND SUPPLIERS

CHARACTERISTICS OF THE PRODUCT AND PRODUCTION SYSTEMS There are two differentiated production systems in organization: The first consists in designing the product; ordering its production and acquiring it once it is finished. In this case, the supplier is in charge of buying all the raw material for production. The second system also consists in designing the product, but unlike the first, all the raw materials used in the garment are acquired by organization and subsequently sent to these suppliers for their production. The characteristics of the suppliers are exactly the same regardless of the system. The use of one system or another depends mainly on geographical factors (proximity) and technical factors (specialization in production). CHARACTERISTICS OF THE PRODUCT Garments and accessories are good quality and always maintain the same standard of manufacture. For this reason the entire production of a model is always carried out with the same manufacturer, except on the odd occasion where legislation imposes limits for matters relating to origin and quotas. PRODUCTION PROGRAMMING Manufacturing period lasts about three to four months from the time the order is placed to when the stock is received. Prior to each season the programme dispatches to points of sale, requesting production according to this criterion. If finally there is a difference with regard to the sales forecast, the regulation of deliveries or changes between points of sale is carried out from warehouse and central services. In the event of there being excess stock at the end of the season this is sold through discounts and promotions. LIST AND NUMBER OF SUPPLIERS The collaboration with suppliers is long-term, and there is a permanent

dialogue, analysis and joint planning of all aspects of manufacturing as well as of the quality control carried out by technicians in all factories. During the 2012 financial year the number of suppliers and factories, which carried out production of garments and accessories, was:
SUPPLIERS FACTORIES

GARMENTS ACCESSORIES

181 77

384 103

It should be noted that suppliers could work with more than one factory to produce the different collections. Equally, some of these factories can be used in different ways at different points in time, depending on the characteristics of the product.

GEOGRAPHICAL DISTRIBUTION OF PROMOD

Purchases, in percentages of units per country, are as follows:

CHINA 40% TURKEY 11% INDONESIA 4% VIETNAM 17% INDIA 7% PAKISTAN 2% MOROCCO 11% BANGLADESH 4% OTHERS 4%

Labeling All garments and accessories are labeled, stating the country in which they have been manufactured. As such there was no non-compliance in terms of the regulation relating to information and labeling of products. Subcontracting Policy of control and the characteristics of production mean that manufacturers for the production of garments and accessories cannot carry out subcontracting. PROMOD carry out their own designs. By subcontracting is the referral to a third company on the part of the supplier of all or part of the production ordered from it without the knowledge or authorization of promod. Although all suppliers have unified the manufacturing process, at times there are special processes some suppliers cannot carry out and which are carried out by other specialized companies, such as embroidery. In these cases promod is aware of these

productions and authorizes them. CODE OF CONDUCT FOR MANUFACTURERS To ensure the adequate compliance with all labor, social and environmental standards on the part of our manufacturers of garments and accessories (hereafter manufacturers), the PROMOD Group establishes this compulsory Code of Conduct. PROMOD provides safety measures to all its manufacturers and workers. MONITORING OF THE CODE To ensure adequate compliance with the Code, they carry out a series of actions and checks on garment and accessories factories at different times: PRIOR SELECTION OF SUPPLIERS: The departments in charge of selecting suppliers will carry out an analysis and previous checks to ensure these suppliers meet all the points stipulated in our Code of Conduct. QUALITY CONTROL: Given the characteristics of production system, they have quality control teams who regularly visit the different factories, carrying out controls on quality and all other aspects relating to manufacturing. In addition to carrying out this follow-up, these technicians ensure there is no breach of our Code of Conduct. TRAINING: The department of Corporate Social Responsibility is in charge of the direct training in this field (implementation and follow-up of the Code, etc.), both internally and externally. INTERNAL AUDITING: This department is also in charge of carrying out follow-up controls and audits to check compliance with the Code of Conduct on the part of suppliers. The following steps are carried out in these audits:

Interview with the supervisors and/or owners of the factories to gather all the necessary information on labor, social and environmental aspects and their procedures. Thorough review of the factory installations, filming and photographing them completely. Selection of a sample of employees from the suppliers personnel files and directly from the chain of production for interviews which include all aspects of Code of Conduct and procedures, placing special emphasis on the review of pay conditions (salaries, payment of overtime, etc.). In the event of the existence of trade unions, this entire process is carried out jointly with their representatives. Finally, a report is drawn up on the compliance with our Code of Conduct as well as a document, which includes a series of recommendations to be applied in all these aspects. In the event of corrective action being necessary a timeline is established for its application. EXTERNAL AUDITING: External auditing of Code of Conduct among our suppliers is carried out by Auden Auditors - S.A., which came recommended by the non-governmental organization Setem. The procedure followed in the external audit is basically the same as that followed in the internal audit. Finally, the external auditors issue a certificate of compliance with our Code of Con- duct, as well as a document including recommendations on these issues should they be necessary.

SUPPLY CHAIN OF PROMOD

PROMODS Supply Chain involves a complex network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of the brand's unique.

APPAREL MANUFACTURE AND DESIGNING Apparel manufacturing starts with the design of the garment to be made. Patterns are made from the design, which is then used to cut the fabric. The cut fabric is usually assembled into garments. The apparel segment is the most laborintensive and fragmented segment of the supply chain. With the headquarters in France PROMOD employ around 200 internal designers and cooperate with around 50 pattern designers and 100 buyers. Together, they create the companys collections, considering the three basic factors: fashion, quality and price. Promod introduces over 100 new items every two weeks and an average of 12 mini collections every season.

BUYING AND PRODUCTION PROMOD does not own any factories and relies on network of external suppliers Buyers, who are part of designer process are in contact with 12 production offices, located in Europe. Personnel working there have been selected locally, and their main task is to mediate between buying department and external suppliers. Production offices helped avoiding miscommunications, because there often differences between designers suggestions and final products. Following steps are followed when promod order a new product. First, internal buyers specify production offices design, number of items required, material and other details. Productions offices decide which suppliers possess facilities to produce desired items and send them specifications. After that, suppliers have 24 hours for preparing samples and sending them back promod Then the quality is checked and accordingly price is quoted. MANUFACTURER TO RETAILER With growing competition and changing market condition promod believes in providing fashion to the market on time. Instead of following the traditional four fashion seasons (spring, summer, autumn and winter) promod changes its fashion once a month. There are about 5000 people employed in the logistics department in PROMOD. Instead of shipping merchandise from the central warehouse, PROMOD delivers product from factories directly to consumers, thanks to a much more efficient supply chain. This eliminates stock-out cost and improves service levels. Promods back-end capabilities are critically important in its success. The brand is adept at managing the various options available in the omni-channel retail world.

PROMODS employs the following programs:

Supply sourcing: locating a source of supplies not manufactured by the brand.

Shipment tracking: This allows users to establish an account and obtain realtime information about cargo shipments. They may also create and submit bills of lading, place a cargo order, analyze charges, submit a freight claim, and carry out many other functions. In addition, customers can track shipments down to the individual product and perform other supply chain management and decision support functions. The application uses encryption technology to secure business transactions. Shipping notice: This automates the receiving process by electronically transmitting a packing list ahead of the shipment. It also allows PROMOD to record the relevant details of each pallet, parcel, and item being shipped.

Freight auditing: This will ensure that each freight bill is efficiently reviewed for accuracy. The result is a greatly reduced risk of overpayment, and the elimination of countless hours of paperwork, or the need for a third-party auditing firm. By intercepting duplicate billings and incorrect charges, a significant percent of shipping costs will be recovered. In addition, carrier comparison and assignment allows for instant access to a database containing the latest rates, discounts, and allowances for most major carriers, thus eliminating the need for unwieldy charts and tables. Shipping Documentation and Labeling: This creates fewer needs for manual intervention because standard bills of lading, shipping labels, and carrier manifests will be automatically produced; this includes the specialized export documentation required for overseas shipments. Online Shipping Inquiry: This gives instant shipping information access to anyone in the company, from any location.

PROMOD strives to achieve the highest quality standards in all components and stages of its supply chain process. The company has been working to address issues deeper in the supply chain including raw materials like leather, fur and cotton.

TRENDS AND DRIVERS OF SUPPLY CHAIN

This segment relates to the size of the various demographic groups, their specific needs, shopping patterns, and spend changing styles in workplace and leisure attire are also influencing retail and manufacturing operations.

SUPPLY CHAIN CHALLENGES AND OPPORTUNITIES

In the past, retail stores often carried apparel products months in advance of the season in which they would be worn. Times have changed, however, and consumers nowadays tend to buy closer to need. To meet this demand, manufacturers have had to shorten design, development, production, and distribution cycles. UK apparel market continually demands fashionable new products and yet it takes years for most companies to bring new products to market. Most apparel production, even today, is typically planned far in advance, based on highly speculative forecasts. Long lead-times, distances and hand-offs between members of the supply chain create tremendous losses for retailers due to markdowns, stock-outs, high inventory levels and shrinkage. In an effort to mitigate these losses, the players in this industry have tried to shift risk either back to the suppliers or forward to their customers. Having realized that there are huge gains to be materialized by bringing efficiencies into the supply chain, players like Limited Brands are working collaboratively with their suppliers on Product and process innovation. In fact, PROMOD, executes two parallel supply chains for smooth delivery of its products based on Whether the product is a basic or fashion item. Although two separate supply chains strategies seem necessary they inevitably add a great deal of complexity to the overall operation.

RETURNS AND MARK DOWNS

The total returns for PROMOD are only 2% of sales. The stores currently currently have provision for reverse logistics. If a customer makes a return and the item is able to be replenished then it goes back on floor; if not, it is marked as stock-room damage. About 10-20%of returns in PROMOD stores are damaged goods. June July and December, January are the only two times in the year that PROMOD offers sales. Sales in PROMOD go up to 70% of discount. This is the only time of the year when products which remain unsold are marked down.

DEMAND FORECASTING AND PLANNING

On the demand planning and forecasting front, the Catalog and Web businesses are governed by separate strategies. This is primarily because the drivers of demand for the two channels are different. For the catalog, the demand forecast is mapped against the curve of the product life cycle from the point the catalog is mailed to when 98% of the product is sold. Moreover, circulation of printed books is the primary driver of sales. Within a catalog, dynamics related to location of the display of product, and to the model selected for the display, are sales drivers. Once Direct has visibility as to the actual product layout of the catalog, it re-forecasts the demand several weeks before it is mailed, and subsequently adjusts its purchase orders. For the web, on the other hand, the forecast is based on individual item performance on an hourly, daily or weekly basis. The Net-Growth Ratio gives one of the key metrics that Direct uses to monitor its sales. PROMOD, especially the catalog business, has additional levers in the way that they can offer a wider breadth of fashion assortments. This is because the marginal costs of carrying fashion versus basics product in Direct is governed by different dynamics in comparison to stores -- as the stores have huge fixed costs due to real estate.

GLOBALISATION AND FUNCTIONALITY

Since PROMOD IS AN FRENCH BRAND its website is highly focused on globalization, making it simple for International customers to navigate the site by offering a myriad of language and shipping options.

Content is both localized and optimized for the global market

With increasing sales in Asia account for much of PROMODS recent success. PROMOD has a successful online supply chain. They believe in growing and increasing market more through E-COMMERCE. PROMOD analyze the needs by women and therefore come up with new designs and trends.

PUSH AND PULL VIEW OF PROMOD PULL DIAGRAM FOLLOWED BY PROMOD

PULL VIEW
To satisfy the needs of customers is the main strategy of PROMOD by offering them a quality product, with safety and guarantees in all aspects of its production while seeking to provide an excellent service at all times through online customer services at http://www.promod.eu/help/write-to-

us/categorie/09#. FOLLOWING STEPS ARE FOLLOWED BY PROMOD: PROMODS sales department identifies a need for a product from their customers. The sales department tells the marketing department about the needs with supporting information. The marketing departments use business analysts to support the project and to complete the research. Data and supporting evidence is passed back to the marketing department for completion of a business plan. The units comprises of senior executives makes decision regarding the project. After the approval plan is passed back to the designers to prepare and implement the manufacturing process. Raw materials required passed to purchasing. Purchasing work with logistics and transport to plan the purchases and delivery of the materials to the manufacturing unit. Suppliers receive orders for product and then dispatch on agreed dates Products received into the warehouse and then to manufacturing. Finished products are moved from manufacturing to the finished goods warehouse. Finished goods are put into inventory awaiting orders. Customer place orders through customer services Customer services takes orders and input them to the PROMODS computer system. Order is taken and sent to the warehouse. Export department manages the final dispatch of the product and produces export document. The warehouses dispatch the order. The transport company delivers it to the PROMOD located store. Accordingly PROMODS staff informs the customer about the arrival of their ordered product.

RETURN STRATEGY ADOPTED BY PROMOD

GIVE YOUR MONEY BACK IN A PROMOD STORE*
IF ONE IS NOT COMPLETELY SATISFIED WITH ORDER, SIMPLY BRING BACK THE ITEMS TO A PROMOD STORE WITHIN 10 DAYS AND TAKE ALONG DELIVERY NOTE. THE STORE WILL FORWARD THE RETURN TO THE WAREHOUSE AND THE CUSTOMER WILL BE REIMBURSED.

RETURN GOODS BY POST

IF ONE IS NOT COMPLETELY SATISFIED WITH THE ORDER THEN RETURN THE ITEM WITHIN 10 DAYS TO THE FOLLOWING ADDRESS (The item must be original wrapping with a filled-out return slip) PROMOD Entrept 6 Service retours ZAC du Parc du Beck Rue des Filateurs 59150 Wattrelos , France. A thorough quality control throughout entire production chain ensures suitable performance of garments and accessories, which answer to every situation. They also have permanent communication channels with customers, both at points of sale and through social networks and specialized departments. Customer services is carried out at points of sale by our staff, who have been specially trained in this regard, PROMOD offers there customers an excellent service. Special training is aimed at customer service, the product, merchandising, trends, etc. In addition, they collect the opinions of customers about their garments and accessories in order to adapt better to their tastes and needs, transmitting these suggestions to the designs of there collections. In addition to the points of sale, customers have several channels of communication. At central headquarters they have a specialized department for any query, doubt or suggestion. Requests are dealt with in 12 languages: German, Catalan, Chinese, Korean, Spanish, French, Dutch, English, Italian, Japanese, Turkish and Russian, Indian.

A total of 162,882 requests they processed almost every year. The main channels of communication are detailed below:

Social networks 0.5%

Fax and letters 1.5%

Via chat 3%

Telephone calls 41%

Emails and forms 54%

The points of origin of these queries were varied: stores, email, etc. The main aspects consulted were the following: Suggestions 1% Congratulations 1% Complaints 22% Request for information 76%

There were also numerous requests from students for data for research work, particularly for design, marketing, advertising, economics and business studies.

PUSH VIEW
PUBLICITY The Department of Communication renews image every season and plans the media on a world scale, adapting its global strategy to the characteristics of each country. The model(s) in their different campaigns are selected taking into account that they are fashion icons, with a suitable and healthy image. In PROMOD brand image transmit a series of values that set them apart:

latest trends in fashion, design and style. All this strengthened by the presence in their campaigns of well-known faces from the world of show business, fashion and sport.

COMMUNICATION WITH THE DIFFERENT MEDIA Press office maintains a constant flow with the different media. During the 2012 financial year approximately 230 press releases were issued and we provided over 140 interviews to the press. Also during this period, a total of 88 institutions and schools visited installations. During 2011 they took part in 65 conferences and seminars organized by different universities and institutions, particularly on issues relating to our corporate social responsibility policy, logistics system, growth and internationalization, etc.

VISITS TO WEBSITES Through website http://www.promod.co.uk/ it is possible to consult all the information on organization, organized in a practical and interactive way. On the website it is possible to find the entire collection and different proposals, for example a Fashion Corner where there are style tips and analyses of the brands new lines.

HEAVY DISCOUNTS AND COMPLEMAENTARY OFFERS

PER SO NAL DATA PROTECTION It should be noted that all the information on personal data used in our organization is protected in accordance with the specifications of the different laws and regulations applicable, without there having been any incidents relating to this in the period of reference.

POLICY REGARDING ANIMAL FUR Any animal skins used in our garments and accessories are from animals destined to the human food chain. Our organization does not use any rabbit skin or the skin of any exotic animals even though these fall under the category above.

FINANCIAL AND INFORMATION FLOWS IN PROMOD

FINANCIAL FLOWS
The financial flow in a typical supply chain includes thousands of invoices and payments in a given year. PROMODs financial flow takes place through following ways: PAYMENTS Payment from a customer can be through Cash in hand Credit/ debit cards (visa, master card, American express and carte bleue) Safe delivery (chosen address) In the interests of secure payment, the PROMOD sites use the sogenactif secure payment service. This service incorporates the SSL security standard. The confidential data (16 digit credit card number, expiry date) is encrypted

(encoded) and transmitted to the sogenactif server but is not transmitted to the server.
.

FLOW OF MONEY FROM CUSTOMER TO PROMODS ACCOUNT

INFORMATION FLOW
Fast response is built upon a partnership involving each link in the chain from producer to textiles right through to the retailer who sells the garment to customer. Retailers communicate information about sales, not to the apparel manufacturer, but also to the textile producer. PROMODS target segment is precisely defined and composed of women who love fashion and what the latest fashion trends. Unlike Zara, mango, Benetton PROMOD is actively focusing on IMAGE, COMMUNICATION CAMPAIGN, PR, and EVENTS AND CELEBRATIES to support its fashion positioning and promote its brand. PROMOD also uses its blog KEEP THE BEAT to keep in touch with its customers and welcomes customers feedback and expectations of the coming collection.

Main competitors of Promod

Zara
Zara is the flagship chain store of Inditex Group. It is claimed that Zara

needs just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year. Nowadays Zara is present in 71 countries, with a network of 1.474 stores in privileged locations of major cities all over the world. Compared with Promod, Zara is a company more international not only about the distribution but also the brand. Zara Stores has 4 basic product lines: men, women, the young and kids. Promod only focuses on womens clothing so it may loss a majority of market even it have the similar price and quality as Zara. The most unusual strategy of Zara is its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. In this case Promod was invested in some womens magazine and newspaper in order to advertise its brand name.

Bershka
Bershka is new clothing and fashion brand, which was created in April 1998.It, now has 558 stores in 39 countries. Bershka has a larger distribution than Promod even though Promod has a longer history than Bershka.Just like Promod, Bershka regard the young people as the target market. On the other hand, Promod is oriented on womens needs, and it seeks fashion accessibly with high quality, not too classical or too sharp. But Bershka is looking for the most modern and sharp style, especially for party girls. Additionally, the price of Bershka is lower than that of Promod, and the quality still needs to be improved. Bershka stores are large and spacious, with an avant-garde appearance. They are intended to be meeting points for street fashion, music and art. In the store, customers can watch videos, listed to CDs or read magazines. Therefore, the additional service is much wider than that of Promod.

Mango
The Spanish firm has designed a key ring especially for this project, which

will be on sale in the more than 900 MANGO stores throughout the world. MANGO continues to grow and consolidate its position in the international market. The Spanish firm experienced growth of 8% with respect to the previous year, closed 2005 with a turnover of 1.144 billion Euros, of which 75% corresponds to sales outside Spain. The firm opened over 118 stores in 2005 and expects to obtain even better results in 2006.And most of them are located in the city center like Promod does. Creating todays womans wardrobe is the aim of all of Mangos collections. Inspired by art, design and pop culture, the brand transforms the latest trends into a personal and unique urban fashion concept. Accessories, which have become a major feature of MANGO designs, are an area of firm commitment for the brand. And the style of MANGO wouldnt be so sharp or very classic, so it suits professional office lady quite well. And in this aspect, it is the same like Promod. The campaign aims to prove that the more mature woman can adapt trends, and that fashion is not limited to women of a certain age and size. Here is the table that shows the simple differences between Promod and its competitors, Zara and Mango.

Promod

Zara

Mango

Orientation Style Price

Women All styles Moderate

All people All styles Moderate Window show& Internet

Women Professional Moderate Celebrities& Internet

Promotion

Magazine& Internet City Center Intermediate

Location International

City Center& Duty- City Center& Duty-Free Shops Free Shops Advanced Advanced

Analysis of the retailing mix

Distribution network Promod designs its products and distributes them in a network of 531 stores spread over 34 countries mainly in Europe, the Middle East. And it has a turnover audience of over 700 million Euros, almost 60% abroad and nearly 20% in partnership. It employs over 3600 people. 100 stores were opened in 2006 (net openings) and teaches provides 150 new stores in 2007. 100 stores were opened in 2006 (net openings) and teaches provides 150 new stores in 2007. Promod is one of the Specialty chains in most European clothing retailers. Specialty chains usually have a wider geographical reach, with some very large players, such as H&M, C&A and Zara. Some are directly owned and operated (e.g. C&A) while others have a franchise structure (e.g. Benetton). The economics of sourcing and marketing differ from those faced by independent retailers. Specialty chains as Promod are also called verticals, as their main characteristic is the control of these companies over the products they sell. Additionally, Promod sells its own branded production, produced by favored suppliers. Promod uses advanced information and management systems through its website, but also through its intranet (electronic data interchange and just-in-time). To be specific, Promod as a single-industry specialist like Mango, Pimkie, Benetton, Terranova, Gap, Kiabi, Top Shop, always focusing on the professional production and the all-round service system. When it comes to the locations and design of the store, Promod is usually established in the city centre or mall and the good location provides the clients the most convenient way, as well as convenient schedules. Thanks to this geo marketing strategy, Promod is very close to its customers, in terms of physical presence, but also in the customers mind.

Services
Moreover, Promod stresses on the quality of advice customer can get from a friendly, committed and available well-trained staff, to answer customers needs. Promod aims at differentiate itself from main competitors by adopting this customer-oriented attitude.

Price
Concerning the price, the orientation of Promod is to offer affordable clothes, and Promod's collections are made with their own designers, producing a range of ready-to-wear items for quick seasonal trends, timeless classics or cutting-edge designer-inspired pieces. Nevertheless, Promod obviously sets its price according to the competition. Merchandising The Average size of a Promod store is 160 to 250 square meters with the Catchment area of more than 50 000 people. And the Linear showcase is around 8 meters with clear classification of products. Clothes are arranged by style: this permits customer to identify the Promods universe, and get inspired. The store is set in two main area: City area: proposes clothes for working women with suits but also elegant clothes for party or special occasion. Leisure area: proposes a large range of trendy clothes and accessories through different styles. In these two areas we can find permanent products considered as basic products and non- permanent products, which create event in the shop every week. To create the event and attract the customers, Promod has adopted a cross marketing strategy, which consists of setting up basic products and new products in a natural and appealing way, on dummy or event wall every week. The facing theme is determined by the Promods marketing

department and set by the store managers and employees of Promod network. It is the same process for the shop window realization, changed every week. Promod aims at keeping homogeneity in all its stores. This is why Promod employs visual merchandisers in order to check the merchandising rules are respected in all stores by store managers. Then all clothes and accessories are implemented on different supports: shelves, areas, facing, coat hanger, still according to the marketing department strategy. Store manager makes sure that the offer is clear for customers. Communication As French owned women wear brand, Promod is stepping up its profile amongst the UK fashion media by signing up Juice PR to introduce its range to fashion journalists. The company is offering consumers high street women wear through its online boutique. The online boutique has proved successful in other European countries and is updated daily including weekly newsletters on the latest trends, bestseller charts and style guide services. Every item sold in store will be available for purchase online, including sale stock. Other extras include footage of the Promod team putting together the model photo shoots. However, Promod wants to stay discreet and aims at simplicity. Promod doesnt use aggressive marketing campaigns, even when there are some promotional offers in store, Promod doesnt stick flashy - 50% flyers on its shop windows, but just sets a central area in the store with a simple flyer to inform customers. Promod trusts in its customers loyalty, tries to set a mutual trust. We can find on 2 walls of the store, large photos that are here just to immerse the customer in the Promod atmosphere. The communication strategy preferred by Promod is through its staff, which is supposed to vehicle the Promod simplicity, and enthusiasm, team spirit, professionalism and creativity.

SERVICES OF PROMOD SAFE PAYMENT DELIVERY OF PRODUCT GIFT AND PROMOD CARD ALTERNATION WEBSITE PLEASANT STORE ADVICE AND FEEDBACK E-ORDERED BOOK EXCHANGE OF PRODUCT BOOK PRODUCT CREDIT NOTE

SWOT ANALYSIS
STRENGTH: Strength PROMOD is a world leader in the design, manufacture and marketing of distinctive casual apparel for women. PROMOD clothes are high quality products usually made of wool. PROMOD is traditionally known for knitwear and casual clothing in a wide array of colors, featuring fashionable FRENCH design and projecting a youthful image. WEAKNESS: In US, PROMOD products are expensive which gives opportunities to many competitors who provide lower prices for the same quality. - Increase in competition due to direct selling by others. OPPORTUNITIES: PROMOD does not have market shares in the many countries, so it can improve its Position in that market. PROMOD can capitalise on the strong image of French design. THREA TS: THREATS the clothing market is getting saturated and the competition is getting Tougher and tougher (GAP, Old Navy, Ralph Lauren, Tommy)

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