MKTG1170 FASHION & TEXTILES MARKETING

ASSESSMENT 1: CASE STUDY ANALYSIS

CASE STUDY: Extracts from Premier Investment Limited Just Group Annual Report 2015

STUDENT: Ellen Hamilton

STUDENT NUMBER: s3332494
TEACHER: Tarun Punwar

SUBMISSION DATE: 20th April 2016

WORD COUNT: 3 553 (excludes Executive Summary, Reference List and Appendices)

CONTENTS PAGE
1.0 EXECUTIVE SUMMARY ....................................................................................................................................................... 3
1.1 Purpose........................................................................................................................................................................................ 3
1.2 Method ......................................................................................................................................................................................... 3
1.3 Limitations ................................................................................................................................................................................. 3
1.4 Assumptions ............................................................................................................................................................................... 4
1.5 Findings ...................................................................................................................................................................................... 4
1.6 Recommendations ................................................................................................................................................................... 5
1.7 Conclusion ................................................................................................................................................................................. 5
2.0 INTRODUCTION ..................................................................................................................................................................... 6
2.1 Company Overview ................................................................................................................................................................ 6
2.2 Company Performance ......................................................................................................................................................... 6
2.3 Brief summary of current market situation .................................................................................................................. 6
Competition .......................................................................................................................................................................................................................... 6
Innovation ............................................................................................................................................................................................................................. 7

2.4 Aim ................................................................................................................................................................................................ 7

3.0 ISSUES ...................................................................................................................................................................................... 8
3.1 Inability to adapt to changes within the market ......................................................................................................... 8
3.2 Low diversification and unclear market position of brands.................................................................................. 8
3.3 Lack of brand integrity ......................................................................................................................................................... 8
4.0 INVESTIGATIONS AND ANALYSIS .................................................................................................................................... 8
4.1 Issue 1: Inability to adapt to changes in the market................................................................................................. 8
Strategy 1: Adopt a vertically integrated supply chain network ...................................................................................................................... 8
Strategy 2: Increase competitive scope through collaboration ......................................................................................................................... 9

4.2 Evaluation ............................................................................................................................................................................... 10

4.3 Issue 2: Low diversification and unclear market position of brands ............................................................. 10
Strategy 1: Diversify the brand in establishing Just Jeans as a denim house ........................................................................................ 10
Strategy 2: Create a diffusion line under Just Jeans for Childrens wear ................................................................................................... 12

4.4 Evaluation ............................................................................................................................................................................... 13

4.5 Issue 3: Lack of brand awareness ................................................................................................................................. 13

Strategy 1: Build brand awareness through brand integrity and brand equity .......................................................................................... 13
Strategy 2: Market penetration of existing brands............................................................................................................................................... 14
4.6 Evaluation .................................................................................................................................................................................................................... 15
5. RECOMMENDATIONS .......................................................................................................................................................... 15

5.1 Invest in a vertically integrated supply chain network in order to be responsive and quick to
changes and demand in the current market...................................................................................................................... 15
5.2 Increase competitive advantage by repositioning brands in the market and through diversification.
............................................................................................................................................................................................................. 16
5.3 Rebuild brand awareness by developing a clear brand message and unite company objectives,
values and practices. .................................................................................................................................................................. 16
6. 0 ACTION PLAN .................................................................................................................................................................... 16
6.1 5 Ways to Win the Market ............................................................................................................................................... 16
6.2 How to implement the 5 Ways to Win the Market strategy: ............................................................................... 16
7.0 CONCLUSION ...................................................................................................................................................................... 17
REFERENCES .............................................................................................................................................................................. 18
APPENDIX ................................................................................................................................................................................... 19

1.0 Executive Summary

The intention of this case study is to identify issues and concerns with the current business
operations and company objectives of the Premier Retail Investment or Just Group.
Major issues identified include; the inability to adapt to changes within the market, low
diversification and unclear market positions of current brands and lack of brand integrity.
These issues have been analyzed and critiqued using marketing theories and market growth industry
tools, such as Ansoffs Growth Matrix, the Industry Attractiveness Table, the Industry and Market
Attractiveness at Macro Level and Market Position Maps.

From discussion of each issue, two viable options or strategies are dissected and evaluated in
relevance to the issue and the company. A single strategy is selected as the final recommendation
and implemented in the Action Plan.

1.1 Purpose
The purpose of this case study is to identify current problems within Premier Retail Investment
Just Group business operations, develop recommendations or strategies for growth and
improvement and to select and justify the most practical solution.
1.2 Method
Research has been conducted through secondary research methods such as class tuition,
participation in class workshops, video lectures, online, investigation of websites, reports, databases
and online articles.

1.3 Limitations
Recommendations are made without consideration to available capital or specific restrictions or
barriers. Marketing theories are developed and discussed solely for this case study and may not
characterize an accurate representation of market groups.

1.4 Assumptions
It is assumed that a feasible solution for Premier Retail Group to achieve market share growth is to
re-create the business model and build a transparent and vertically integrated system.

1.5 Findings
a) Issue One addresses the companys inability to adapt to changes within the market. This
may be due to the current operations and supply chain network and lack of acceptance to
change. This is discussed by comparing and contrasting the Just Group to the Cotton On
group in terms of supply chain and market growth and acknowledges the differences of the
two retail companies. This comparison develops strategy one to integrate the supply chain
into a vertical operation. Strategy two takes a different approach by increasing the
competitive scope through collaboration. It further discusses the benefits of associating the
brand with a respected figure, however, is argued as a short-term solution, therefore less
effective in achieving market share growth.

b) Issue Two stresses the lack of diversification within the Just Group brand portfolio and the
un-clarity of the market position for some of the key brands. Through the theory of Ansoffs
Growth Strategy matrix, an initiative to create the Just Jeans brand as a destination to hold a
range of denim brands and products is discussed as strategy one. In contrast, strategy two
suggests a potential opportunity to develop a diffusion line of Just Jeans childrens wear.
Conversely, this is debated as a greater risk as failure of the brand extension may deteriorate
the existing perception of Just Jeans.

c) Issue Three explains the current lack of brand awareness of the Just Group in comparison to
key players in the market. The importance of brand integrity and brand equity is outlined
and strategy one explores the process of re-establishing these core values and direction for
the company. On the other hand, strategy two addresses new avenues to access the market
4

with current products utilizing the Industry Market Attractiveness Table. In evaluation, the
importance of brand integrity and company direction as a long-term strategy is valued as
greater relevance than current market penetration theories.

1.6 Recommendations
a) Invest in a vertically integrated supply chain network in order to be responsive and quick to
changes and demand in the current market
b) Increase competitive advantage by repositioning brands in the market and through
diversification
c) Rebuild brand awareness by developing a clear brand message and unite company
objectives, values and practices

1.7 Conclusion
In investigation it has been discovered that the major issues that Premier Investment Group or Just
Group is challenged by includes the current business model, the brands offered and the low brand
awareness. Each of these areas have since been somewhat neglected within the firms direction. For
the Just Group to maintain their position as a key player in the Australian retail industry and to
potentially achieve market share growth, it is vital that the firm initiates immediate action to these
problem areas. Suggested action plan 5 ways to win the market strategy that aims to achieve
growth in market share once each of the key areas are completed and is a prime solution for Just
Group.