TEAM POWER MONGERS

Q1. At the time when fast fashion continues to dominate the apparel industry, develop a marketing strategy that
would include STP, PESTLE, and market situational analysis for Runway's new sustainable fashion line.

Solution:
Runway, a fashion retailer company, was leading the European market in the apparel industry, but due to lag in technological innovation and
market fierce competition, it saw drastic fall in revenue and has declared bankruptcy. But now, company wants to comeback in the fashion
market through the sustainable fashion industry as it tries to push away the tag of being a fast-fashion retailer.

Market Strategy for Runway’s new sustainable fashion line.

1. SWOT Analysis
A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the
strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. A
SWOT analysis can be carried out for a product, place, industry or person.
Strength:
Highly potential team which understands consumer demand and style, good at catching and bringing
trends in the clothing apparel, able to launch high end products at low price, price doesn’t affect
quality.
Weakness:
R&D in terms of innovation of technology is weak, unethical stamp of violating copyrights issue, not
able to establish on E-commerce platform, brand loyalty and customer retainment.
Opportunity:
Demand of Sustainable product is high & supply is less, Mobile marketing and Digitalization
Threat:
Cost & Availability of sustainable products, Competition from other Apparel manufacturers, Competition from E-commerce platform
2. PESTEL
Pestel analysis was done primarily because of following reasons:
• To describe some of the macro-environmental factors that affect organizations
• These factors can affect strategies and the ways in which organizations seek to handle aspects of their environment
Political Economical
Dfd Big Surge in De-Globalization across the world Different labour laws across different countries
Dds Economic instability due to Covid-19 Pandemic Increase in unemployment due to Covid-19 pandemic
Upcoming elections in major economies including USA Unstable economy across the globe
Non-standardized e-commerce laws across the globe Reduction in the purchasing power of consumers
Sociological Technological
shift in consumers' mindset in favour of sustainable Use of digital marketing to manipulate consumer
products behaviours
Drastic shift of consumers from brick and mortar shops to Disruption in supply chains across the globe
e-commerce platforms
Influence of social media on consumers' purchasing Influence of big data analytics in determining shopping
pattern patterns
Supply chain models for sustainable fashion
Legal Environmental
Focus on UNSDGs Increased demand for sustainable products
Stricter norms and regulations for foreign companies in Influence of climatic conditions on apparel choices across
Some countries Different countries
Increase in emission of Greenhouse gases from textile
industries

3. STP
STP is an important process where segmentation is conducted first followed by targeting and positioning. For Runway’s new sustainable
fashion line and by analysing market scenario, we have come up with an idea of bringing trendy and sustainable cloths. Our STP Analysis is
done on the basis of our new product line.
We have segmented our consumers on the basis of Demography, Behaviour and Psychographics.

Demography – We are known for offering high fashion at low prices, typically targeting working class, lower middle class and students;
women aging between 15 and 30 years as they are ambitious with high buying power.
Behaviour – We are considering consumers who want to keep up with the trend
Psychographics- Personal, social, cultural and psychological influences result in a lifestyle and personality. In this segment, we are focusing
on consumers who are inclined towards sustainable products

4. MARKETING MIX
Product – We will bring our sustainable products into 3 categories i.e. signature, elite and natural. Apart from this we will also introduce
jewellery made from recycled and natural objects. Signature clothing will consist of cloths made by recycling raw materials and our normal
raw materials. Elite clothing will comprise of products which are made by mixing normal and organic raw materials. Natural clothing will be
made from 100% organic raw material.
Price – Our pricing will be relatively low with respect to our competitors and it is based on consumer needs i.e. low price and high quality.
Signature clothing will be cheapest, followed by Elite and then Natural.
Promotion – To promote our products we will be conducting many campaigns, eye catching engagement activities and will leverage the use
of Digital Marketing
Place – For short term period, we will be operating the stores which are currently in operations and will open new stores at prime locations
of the region. We will start our global supply chain as per the pandemic situation. We will also launch ourselves on E-retailing sector.

5. AIDA
Building a substantial and loyal customer base doesn’t happen over-night. There are a series of
stages that a customer goes through before being called as a customer/user of the product. The
AIDA model structures this journey and categorizes it into 4 stages – Attention, Interest, Desire
and Action.
Attention: Mascot, Campaign, UNSD goals
Interest: Follow up with our existing customer base, Discounts, Engagement Activities
Desire: Trendy & Sustainable clothes, trans-seasonal cloths
Action: Buy our merchandise, develop a loyal customer base.

6. ANSOFF
Ansoff matrix is used when companies want to look at opportunities to grow, and
hence need to choose one of the various growth strategies – Diversification,
Product Development, Market Penetration, and Market Development. Also known
as the Product-Market Matrix

Considering Runaway case, we are entering in an existing market with a new

product. So, we will go ahead with Product Development strategy.

Financial Sustainability
Assumption: We are assuming that we will get a company who will be ready for 49% stake and in total we will be able to generate funds
worth 1 billion USD. We will use this fund to finance our different activities.
Finance Source
Considering our present financial status and after filling for bankruptcy, we will use following measure to generate capital
• We will apply for 49% stake bid in the open market
• We will pitch our new business plan to generate funds through equity investments and short-term loans from NBFC’s
• Strategic use of our current assets
• Restructuring our assets
• Government Aids if any
Financial Strategy
We have divided our financial investments into different segments like R&D, marketing, Capex, Opex, etc. Distribution in R&D and marketing segment has
been explained further. Refer Pie Charts. Using the general thumb rule, we have calculated our company’s budget.
Operational Sustainability
For operational sustainability, we have divided our goals into short term and long term
Short Term Goals
Green Distribution & Retailing
1. Start targeting eco-friendly modes of transportation.
2. Move to eco-friendly packaging and charge premium on non-biodegradable packing to discourage them
3. Launching online stores is beneficial to the green retailing, which could cluster user experience and create the business
values.
4. Launch used clothes collection program, under which three kinds of collected garments are categorized:
• Re-wear: clothes that can be sold as 2nd hand goods
• Reuse: clothes unfit for wearing but can be converted into other garments
• Recycle: garments that cannot be further reused can be converted into fibres and used in manufacturing
5. Make all the information transparent
Sustainable Supply chain
• Source as many goods locally as possible to reduce the carbon footprint via transportation of those goods.
• Engage in developing the biological textile production.
• Start getting sustainable manufacturing practices by third party firms
• Use organic cotton and start investing in sustainable cotton production.
• Work with third party firms to procure organic cotton and training in-house farmers to grow organic cotton
• Start local sourcing, this reduces the lead time, which benefits in matching supply and demand and adopting a quick
response strategy.
• Start monitoring factory compliance and providing training to suppliers and their workers.

Long Term Goals

Green Distribution & Retailing Sustainable Supply chain
Using of E-Vehicles, using ferries instead of air transportation Grow your own organic cotton
Training Programs for drivers to comply with eco-friendly norms sustainable manufacturing
Expanding global reach through e-commerce and e-retail help eco-products to be promoted better among consumers
Run retail stores on 100% Renewable energy Use of Big Data and Blockchain
Q2. Runway Ltd. is planning to re-enter the market with a completely new makeover as a sustainable fashion brand. As the head of the
marketing team, you are responsible for running a cause campaign. Develop the short- term and long- term marketing plans for the
company as it tries to rebrand itself from a fast-fashion company to a sustainable fashion one.
Campaigns
Short Term Campaigns

1. Campaign: TV show interviews with environmental activists.

‘Why do we fall, so that we can learn to pick ourselves back up’ - Batman
Execution
• Rope in Greta Thunberg for an interview with a globally famous TV show to publicize Runway clothes.
• The distribution channels would be social media, TV, OTT platforms.
The Message
• Offer quality products while always looking for new ways to meet customer demands and environments call for its
protection and sustainability.

2. Campaign: Creating a green army.

Execution
• Will rebrand as more eco-friendly and gain empathy by lending a helping hand to the needy by training and employing
them.
• This will be done under the ‘I am for humanity’ initiative.
• The distribution channels would be social media, TV, OTT platforms.
The Message:
• Pay attention to what the public feels about you and respond with products and services that counteract those
accusations.

3. Campaign: Garment collection

Execution
• A music video titled ‘Who is gonna save the world’, talks about recycling and reusing your clothes.
• The distribution channels would be social media, TV, OTT platforms.
• The actual campaign will run at the stores where categorised garment collection bins are placed as mentioned below:
a. Re-wear: clothing that can be worn again is sold as second-hand goods worldwide.
b. Reuse: textiles that are no longer suitable to wear and converted into other products, such as cleaning cloths.
c. Recycle: textiles that cannot be reused can be turned into textile fibres.

The message
• Runway is now moving towards being a sustainable brand keeping in mind all the ethical practices.

Long Term Campaign

Campaign: Reopening for you with care

Keeping in mind the allegations on mistreatment of women workers and the use of child labour.
Runways will set itself up for 9 targets for the next 3 years and review and measure its proceedings every year for the effort to set up
a sustainable world:

1. Making stronger ties with communities from around the world.

2. Helping 1,00,000 people access work and provide them trainings.
3. Three sessions per year for doing volunteer in our local communities.
4. More transparent information and a 100% traceability of our products, towards sustainability in supply chain using
blockchain.
5. Reducing our environmental footprint (Biodegradability, Water Footprint, Renewable Natural Origin, Green Chemistry and
Carbon Footprint)
6. Business Transparency in sharing details of our commitments with our customers
7. Go Digital, a responsibility to not harm the environment, but also to go further and enrich it.
8. R&D in Developing and innovating new packaging of our products and a commitment to a greater impact.
9. Powering all stores with renewable energy and to reduce the level of greenhouse gas emissions in the atmosphere.
Never too late to be Reinventing
For Immediate Release Runway Pvt. Ltd.
13th July 2020 [email protected]

While we understand that many of you might not be happy about the changes being made to our policies
and ideologies, we at Runway believe that, as a trendsetter in the fashion industry we are very much
responsible for the consequences of what we do.

Recently, one of our manufactures was allegedly involved in foul practices pertaining to the factory
workers. We do not support such practices and therefore have ended our contract with the manufacturer,
as mentioned in a previous press statement.

We at Runway also believe in leading by example. We keep in mind the consequences the environment
faces due to unethical practices. We have therefore pledged to become a more sustainable brand and our
motto going forward will be, ‘Sustainable way is the new and better way’. This new motto of ours benefits
our customers, our employees, and the environment:

• Our eco-design products are more versatile and are manufactured with longer lasting material.
• They consume less energy resulting is less carbon dioxide emissions.
• We ensure that all our workers are paid and treated fairly.

We hope that you stay by our side throughout this journey and help us contribute in a better way.

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