January 11, 2023

New Product Development

AMERICAN DRESS HOUSE GOES ONLINE

Submitted To: Sir Umar Chaudhary

Submitted By:
Shanza Noreen 01-222211-010
Tabish Maqsood 01-222211-013
Alina 01-222211-002
Aisha Arshad 01-222211-001
Muhammad Usman 01-222211-008

Class: MBA 4-C

Department of Business Studies

Bahria University
Islamabad
 American Dress House Rawalpindi

Introduction and Problem Statement:

The American dress house is more like a tailoring shop and deals in suits for men’s
specifically. They also deal in unstitched cloth that anyone wants to stitch a suit in. They are
well equipped with all types of tailoring expertise including the shirts, trousers and the whole
package/suit for men’s. The best thing about them is their pricings and their fitting as these
are the two main pillars/components that every customer sees when he wants to get a suit.

The problem here is that they are doing business offline which makes their customer meet
difficulties whenever they want to visit and get a suit from there. Although they are very
professional and liked by everyone who avail their tailoring services yet there are tons of
difficulties that a customer faces. One of the major difficulties customer face is that their
location, it is situated in a crowded area of Rawalpindi i.e. Saddar Market and they have a
huge crowd even in their shops. People have to provide their measurements there physically
and have to meet the requirements in that crowded shop which is quite difficult for everyone
and full of hassle.

Scale and Scope of the Innovation

The process of scaling an innovation result in its widespread application. After an

innovation's discovery, proof of concept, and piloting, it is considered the final step. It is
frequently utilized in business to maximiser the product's operational size after keeping all
the problem in mind we have come to know that American Dress House want to bring their
online application and presence where people can provide their measurements or can choose
their cloth online and have an appointment with them at a specific time range and their tailor
can visit them to get the measurement (if needed) or can get their order placed through an
online platform. This can be huge and can reduce so much stress and time of both the parties
i.e. tailors and customers and the delivery date can be reduced to half as their delivery dates
are way more than a month and we can also provide dress at home for the customer
satisfaction so that customer can check the quality and texture of the fabric.
So, looking upon our service it will fall in the second category of services i.e. services
directed on product/ possessions. It's because we will be providing stitching services on their
possession i.e. cloth which they will buy first even from us (mainly).

Market Analysis/ Segmentation:

For American Dress House we will have two major segments of market i.e Rawalpindi and
Islamabad and then will be further segmented on the basis of some specific sectors where our
target market lies. Further our segmentation will be based on demographics.

Demographics
Age 25yrs - 45yrs
Gender Male/Female
Population 3.3 Million (RWP/ISB)
Ethnicity All
Social Class Lower - Middle – Upper
Income Bracket All
Geographical ISB/RWP
Psychographic Lifestyle
Behavioral Benefit Sought
Marketing Mix

Product:
Our core product is stitching services done through our highly skilled tailors and their
professional fittings for every customer.

Price:
Pricings is also our core offering as it differentiates us from our competitors. By doing online
we will also look into our delivery prices which basically have to be borne by the customer to
get their suits delivered.

Place:
The place we are offering now is online channels that will include their online website and
along with that customers can place their order through the application which can be very
convenient for every customer who has to come all the way from islamabad and far areas in
rawalpindi.

Promotion:
So for the promotion purpose as we are promoting our online presence for order placement
etc our main focus is through social media channels includes Facebook, Instagram and
TikTok specially because of our huge target market out there, and along with that we will be
doing some mainstream media promotional ads and some conventional marketing like
billboards promotions.

People:
So in our service delivery people are very important because the customer who is placing the
order must aware of their measurements or we have to guide them by showing some size
chart etc along with that we have to have a trained staff who is taking online orders and can
brief to our tailors to start working on specific order according to the correct measurements.

Process:
The process will start form online website or the application where we have first step to
choose the cloth first along with color and other styles then customer has to provide their
measurements there according to the size chart, they can also apply for the tailor to get their
measurements by either visit them or they can visit on specific time so that the shop don't get
crowded and the measurements can be took properly. After that the customer has to set the
delivery dates and checkout with their available options. American Dress House has a policy
of having 50% payment done at the time of offer and 50% at the time of delivery so this is
very consumer centric and feasible for everyone. After that in the last stage they will confirm
their order.

Physical Evidence:
Our representative confirming the order will provide a signal that we care about accuracy of
what they want. When the final dress or design will reach them it will itself speak about the
fine quality stitching provided by the American Dress House. Timely delivery made by our
rider will also provide our customer with the evidence that they will get their dresses before
their special occasions.
Porter’s Five Forces

Bargaining Power of Buyers

In the fashion industry, consumers can lower product prices. Buyers can achieve this by choosing
not to purchase from a given firm or shifting to buy from an alternative seller in the market.
Therefore, American Dress House online presence will increase the order as it is already have its
brand value and they are also providing the dress in reason pricing which is affordable for their
customers
Bargaining Power of Supplier
In this industry, bargaining power of supplier is somewhat low because of the fact that there are a
lot of different suppliers in the industry that can help the American dress house to procure supplies
that is unstitched cloth hence, the bargaining power of supplier is low.

Threat of Substitution
It is not easy to substitute clothes thus, players in the industry have little to no ability. Therefore,
the threat of substitution is insignificant as customers may sometimes are not interested in buying
there are some shops who are providing readymade suits on rent for the customers

The threat of New Entrants

Entrants of new firms into the clothing and fashion industry have limited effect since they have
little uniqueness to induce into the market. However, we don’t have threat related to this market as
we design our service in such a way that satisfies customers’ needs

Competitors Analysis

Currently if we look onto competitors that are working online then we can look Lawrencepur
as they are delivering the suits online and physically they are present in the same market i.e.
Saddar Rawalpindi which makes them direct competitors. Along with them all of the brands,
local clothing outlets where people can go for purchase clothes will be our indirect
competitors. Lawrencepur are providing suits that are ready to wear and customers can buy
online from them but they are expensive and are not providing the perfect fit for every man
out there.
So here we are using a differentiation strategy which is our most demanded tailoring service
along with the choice of choosing the cloth for their suits online. There are some entry
barriers in this online industry but our demand is already in the market. We just have to push
our brand in the online market through online mediums

Targeting approach:
As we are targeting the social classes from the twin cities that is Islamabad and Rawalpindi.
Our targeting approach is fully focused. We will be using all sorts of advertisements tools
like billboards, Instagram, Facebook etc. to reach our targeted segment of the population.
Once our message reaches our potential customer, he will be using our website or application
to contact us to select all the requirements and place order without any hustle.
.
General Product Description
Product:
Our core product is an online service that helps the consumer and the owner of
American suiting to take and give services respectively in an efficient manner. The American
suiting is already offering a lot of services in men’s dress shirts, dress pants, prince coats and
other casual and formal products however, the core product here is their online service which
is going to allow the customers to design their customized outfits online and then place their
order through mobile application or website.
The customization will also allow the users to customize their designs as they are in
the heads of these consumers, as if sometimes the customer might not like anything that s
already available so that they can create their own designs by mixing and matching
techniques in order to create their desired products under the reach of our own resources.
Supplementary services:
The supplementary services strengthen the core product and adds value to the core
product because that is what customers are looking for now and that is what creates a
competitive edge for the brand as well. The mobile application is the core product however,
the supplementary services that can be provided with this core product is the doorstep
delivery of the ready products of customers. This can be another added value for the customer
as they will get their services at their doorstep and they won’t even have to visit the store
physically. Of course the brand can charge extra fees for these services however, it will help
the brand to improve their brand image for sure. Call services can also be offered to the
customers once their order is ready, they can also get notification on apps when their order is
done to be delivered.

Product Technical Specification

For providing service we will be using intermediaries for the success of every business there
are a lot of intermediaries that are required in order to become a complete brand. The
intermediaries needed for this service according to the flower of service are the payment
intermediaries like Jazz cash, Easy Paisa and Bank accounts that will be linked and will be
used by customers to pay online payments. Delivery services like Bykea, Careem or any
other delivery service can also be an intermediary in order to deliver these packages to the
doorstep of customers, if needed.
For marketing we will be using Facebook, TikTok, Instagram, and other advertising tools
Once our message reaches our potential customer, he will be using our website or application
to contact us to select all the requirements and place order without any hustle.

Cost:

Application 100,000

Promotion 50,000

Un-stitched clothes 200,000

Equipment’s 40,000

Packaging material 20,000

Total 410,000

Integrated marketing plan:

Target audience:
Our target audience is the males who use technology and do not have time to visit
stores.
Businessmen and other professionals
Youngsters

We need to target this range/sample of population hence all the advertisements of marketing
that is done for the brand must be visible to these potential customers hence, all the related
social media platforms must have an ad of this service as well as the billboards must also be
placed in the places which are visible to this set of population specifically. The objective of
such marketing plan is basically to shape and manage the customer bank of the brand and to
know their behavior on the pre-purchase, encounter, and post-encounter stage as well.

AIDA model
Will be applied which includes awareness of this new service, Sales strategies and public
relations campaigns
Awareness
Awareness about product and service to attract the attention of consumers
Interest
Once the consumer is aware that the service exists. The business must work on increasing the
potential customers, interest level.
Desire
After the consumer is interested in the product or service, then the goal is to make consumers
desire it, moving their mindset from “I like it” to “I want it.
Action
The ultimate goal is to drive the customer through marketing campaigns and customers take
initiate action and purchase the product and service.

‌Build loyalty can be then increased by providing best post-purchase or after-sale services
including alterations etc. in order to build stronger brand loyalty. Other ways of encouraging
brand loyalty include:

● ‌Encouragement of word of mouth

● take more Reviews
● Recommendations on several
● ‌Building a brand community

Marketing communication:
After making a marketing plan, the marketing options are to be communicated to the
potential or target customers. For this we need to have a marketing mix that includes different
marketing channels to ensure that the marketing of this brand is done efficiently. The
objective is to spread the word around the potential customers through advertisements and
online marketing.
● This includes print and digital media marketing like email marketing and
messages etc.
● Online marketing can be done by Instagram, Facebook, website and other
social media platforms
● Sales promotion can be done by celebrity endorsements and personal
communications
● Telemarketing can be used
● PR can be sent through different events and activities as well.

Conclusion
In conclusion, development of new technologies is the creation of new products and
innovative services that can enhance the quality of service or product that is provided to the
consumers. For this purpose all different aspects of marketing, management and other fields
of business are needed to be on point in order to reach goals and ensure customer satisfaction
as well while keeping the profit margins moderate to high for the benefit of the service
provider and the user of that product or service.

References:

Gaikwad, A., Ingale, G., Lutade, A., Satav, P., Kadam, T., & Gavli, R. DIGITAL
TAILORING APP.
Rosmansyah, Y., Habibi, F. F., & Bakhrun, A. (2019, November). E-Marketplace Prototype
for Tailor and Confection SMEs in Indonesia. In 2019 International Conference on ICT for
Smart Society (ICISS) (Vol. 7, pp. 1-4). IEEE.
Phale, P. (2019). Online Shopping System with Stitching Facility. JournalNX, 279-282.
Abbas, B. S., Trisetyarso, A., & Saputra, W. (2020, March). Mobile-Based Plus-Size Fashion
and Custom Online Marketplace Prototype. In 1st International Multidisciplinary Conference
on Education, Technology, and Engineering (IMCETE 2019) (pp. 336-340). Atlantis Press.
Appendix: