REPORT TITLE : ASSESSMENT 4

COMPANY NAME : PADINI

DATE OF SUBMISSION : 1 NOVEMBER 2017

PART A : YEAP SU YING 5715301

DEVAKY

PART B : TAN SHI HUI 5835586

MARINA HONG KE YIN 5839105

PART C : MANDY YEOH 5838800

YEOH ZHI SHING 5820510

PART D : ALL MEMBERS

1
PART A
Basically, every business is influenced by macro environmental forces. It can affect the need
of the company’s product to rise or fall, or create entirely new product needs (Tischler, n.d.),
as macro environmental forces are the major external that can influence an organization’s
decision making and affects its performance and strategies. It can be the opportunities and
also pose threats to the company. Analysing the Padini Holdings macro-economic influence
factors by four main groups of macroeconomic factors, which are political and legal factors,
social factors, technological factors and natural factors that will be further discussed in more
insight. A company could be success if they are able to use its own potentials and adapt to the
company’s environment.

Every business is regulated by the political environment, which involves government

agencies, laws and pressure exerted groups. Political and legal factors are basically how the
government affect and restrict the individuals and organizations in the economy. Hence,
marketing decisions are strongly influenced and affected by developments in the political
environment (Claessens, 2015). According to the secondary data, Padini Holding Bhd sales
has risen over the five years after they are operating their business. This is due to the
government’s proposition and in order to better consumers passing in the vesture industry,
‘Mega Sales Carnival’ has been carried by the Malaysian authorities to be held three times a
twelvemonth. Padini’s goal is to promote Malaysia as a ‘value for money shopping finish’,
with this aggressive approach, it has attracted the Malaysians and tourists to shop at the local
dress mercantile establishments, which in bend would improve customer spending in the
vesture industry, increase the state’s foreign exchange net incomes and foreign tourist
disbursement (Reddy, J 2017). As Padini Holdings was initially engaging in the manufacture
and wholesale of men, ladies and kids wear, so there are different rules and regulations that
guide licensing requirements, labour issues and incorporation procedures for Padini to obey
in order to not break the law. Due to Padini has a huge product offering in the market for their
consumers, such as SEED, PADINI and VINCCI, which are luxury and fashion brand
clothing, Outlets Brand and PADINI Authentics, which are cheap and affordable brand
clothing and its own kids and maternity wear, Miki, hence all these brands have been
credited by the Association of Accredited Advertising Agencies of Malaysia (4 A’s) in
collaboration with Interbrand, to be the world’s leading brand consultancy in the top 30
Malaysia’s most valuable brand.

2
Cultural factors, age distribution and population growth rate are included in the social factors,
it had a significant impact on consumers’ buying decision. It is linked to other factors that
impact society’s preferences, basic values and behaviour. Every consumer has different sets
of beliefs and habits which was developed from their family status and background and the
trends in the social factors will affect the demand for the company’s products and operations.
For instance, Girls in South India wear skirts and blouses as compared to girls in north India
who are more into Salwar Kameez. (Cultural Factors Affecting Consumer Behaviour, n.d.).
The Hongkee in Hong Kong are really willing to spend their disposable income to dress up,
especially those younger coevals, and never concern about the economy, as they are really
very concern about their personal image. Nowadays, the propensity for the manner will
change so sharply, and it has affect Padini to has competitive advantage. As Padini is the
backend operation dress industry so they can still keep the cost of the production to be low.
Due to the civilization between the Chinese in Malaysia and Hong Kong are almost the same,
so Padini can distinguish the civilization job. Besides, it is also due to Malaysian had
influenced by the Hong Kong civilization through broadcast and media since we had our
telecasting (A Case Study On Padini Malaysia Essay, 2017). Malaysia is classified as an
upper middle-income country, and the median monthly household income in Malaysia has
increased from RM2,626 in 2012 to RM4,585 in 2014, which is growing at the rate of 11.7
per cent annually. While the mean income has risen from RM5,000 to RM6,141 from 2012 to
2014, which is an increase of 10.3 per cent per annum (Appendix 1). Based on the report on
household expenditure survey in 2016, it has proven that Malaysians are spending 3.4% of
their income on clothing and footwear (Appendix 2). It has clearly shown that Malaysia’s
consumers’ lifestyle is changing and becoming better and better due to the rise in education
levels. High profile retailers as well as global mass media have shaped consumers' buying
behaviour, resulting in the Malaysians being more westernized (Analysis of Malaysian
investment company Padini holdings Berhad, 2015). The Malaysian are spending most of
their free time shopping around the trendy fashion shops. Therefore, Padini Holdings Bhd
should constantly keep update with the latest fashions and trends. They need to spend more
on advertising to show their existence and keep the customers informed that they are
providing their customers with cheap, quality and trendy clothes. Besides, they can also give
discounts or rewards when the customers subscribe to their newsletter.

3
 Statistic of Malaysian Online Shopping

Al most dai l y Once a week Once a month Once a yea r

Figure1.0
Technological factors form a crucial impact in the macro environment. They are linked to the
development of new technology that would affect the consumers’ needs and wants. It
included technological aspects, like research and development activity, technology incentives
and the rate of technological change. It would affect the costs and quality, then lead to
innovation. Nowadays, with the internet, retailers can sell their products through online and
present it to their customers on their door-step efficiently with timely mode. According to a
study by Malaysian Communications and Multimedia Commission, 35.3% of Malaysians
were profound of online shopping (The Sundaily 2017). And according to the Malaysia
Digital Economy Corporation (MDEC) director of e-commerce enablement, Wee Huay Neo,
with the 7% of online shoppers purchase almost every day, 26% once a week, 54% once a
month and the remaining of 13% once a year. As they notice that it is easy to obtain and
purchase everything they want and need with just a click of a button. Malaysia has the
highest penetration of online shoppers, which is 67% (figure 1.0). In the year 2000, Padini
Holdings Bhd has established Padini Dot Com Sdn Bhd to provide electronic business
services and solutions for the group. They created their own online shopping website to let
their consumers an easy way to shop, and it help to save up a lot of time for those who are
busy all the time even on weekends and lazy to go out for shopping. Besides, this also helps
them to gain more net income utilizing on-line mediators and reduced the costs on opening
new stores. The online shopping website is the support to prove that Padini Holdings Bhd is
making use of the technological factors to make benefits to their business. New age
technology had brought many radical changes in business world which is the recent trend that
greatly boost up a business and something that almost every business is engage with social
media. Social media have increasingly showing high percentage of interactive engagement
with their consumer. Padini had used social media, such as Facebook and Instagram, and they
have more than 100k of followers on Instagram and over 500k of people who liked their

4
official page on Facebook (Appendix 3). In this way, we see that this technological change
has lead Padini to operate their business in a different way. Nevertheless, Padini Holding also
never neglect their main target on their retail traditional business.

Natural factors include everything that may changes the nature of the environment. This
includes environmental aspects such as weather, climate change, which would influence the
industries, such as tourism and farming, and human effects like non-biodegradable litter.
There are some visible environmental changes, like the heavy rains caused the landslide.
Besides, some environmental changes are invisible or slightly hard to see. Environmental
changes have a major influence on virtually all markets, consumers, products and services
(Ashriq, 2015). In Padini Holdings Bhd, environmental factors have big impact in trends, as
nowadays consumers are very fashionable and very concern about their outfits. Furthermore,
due to the new trend, there are a lot of different consumers constantly demand for a different
product and service. So, Padini is able to be in the line as they offer a huge range of different
products to satisfy the satisfaction, want and need of their consumers. Environmental factor,
such as the seasonal festivals, like Hari Raya, Happy Deepavali and Chinese New Year, these
festivals had influenced Padini’s sales to increase. As for the nationwide sales programs, such
as the Merdeka Sale and Malaysian Mega-Sale also benefits Padini’s sales revenue.
However, during off-peak season, typically on every April to June, it has comparatively lower
sales figures than peak season. However, it is normal to have lesser sales on off-peak season
and it has known as the characteristic of the vesture industry and it has expected to have no
any impact on Padini’s overall financial performance (Appendix 4). As the weather in
Malaysia is hot year-round, so Padini brings the Spring Summer 2017 collection, which is
suitable for the Malaysian. Due to the environmental change, we are moving to “GO
GREEN”, Padini Holdings bring this change to their business where they use only bio-
degradeable plastic bags in their retail shops. They are also selling product that align with
‘Go Green” such as bags, clothes and so on.

The report states a lot of perfectly research results of the macro-economic factors based on
Padini Holding. Each of the factors are deeply analysed and the data obtain from various
official sources of Padini holding, news update, social media and etc. The finding shows quite
a high number of different terms and definitions of macro-economic factors. The research has
proven with secondary data which is provided in the appendices. This could be more

5
empirical if there is primary data research is being done such as interviewing the Padini
holding to increase the credibility of the data.
Appendix 1

https://www.dosm.gov.my/v1/index.php?
r=column/cthemeByCat&cat=120&bul_id=aHhtTHVWNVYzTFBua2dSUlBRL1Rjdz09&m
enu_id=amVoWU54UTl0a21NWmdhMjFMMWcyZz09

Appendix 2

https://www.dosm.gov.my/v1/index.php?
r=column/cthemeByCat&cat=323&bul_id=WnZvZWNVeDYxKzJjZ3RlUVVYU2s2Zz09&
menu_id=amVoWU54UTl0a21NWmdhMjFMMWcyZz09

6
Appendix 3

Appendix 4

7
http://nexttrade.blogspot.my/2017/02/padini-earnings-soared.html

Part A reference list:

A Case Study Of Padini Malaysia Essay 2017, accessed 19/10/2017,
https://devilsdenfarm-bandb.com/essays/a-case-study-on-padini-malaysia-essay-1133

Analysis Of Malaysian Investment Company Padini Holdings Berhad 2017, accessed

23/20/2017,
https://sherrysellsseashells.com/analysis-of-malaysian-investment-company-padini-
holdings-berhad-5499/

Ashriq, Z 2015, Factors That Affect Company’s Achievement, accessed 19/10/2017,

https://padlet.com/zarinashriq17/mok13b3q5oj7/wish/60560484

Claessens, M 2015, The Macro Environment – Six Forces In The Environment, accessed
19/10/2017, https://marketing-insider.eu/macro-environment/

8
Cultural Factors Affecting Consumer Behaviour n.d., accessed 19/10/2017,
http://managementstudyguide.com/cultural-factors-affecting-consumer-behaviour.htm

Ee, A.N 2017, Malaysians Are Online Shopaholics [newspaper], The Sundaily, accessed
22/10/2017, http://www.thesundaily.my/news/2151542

Environmental Factors n.d., accessed 19/10/2017,

https://www.nps.gov/olym/learn/nature/environmentalfactors.htm

Hainla, L 2017, 21 Social Media Marketing Statistics You Need to Know in 2017, accessed
22/10/2017, https://www.dreamgrow.com/21-social-media-marketing-statistics/

Movekids 2017, Movekids – Padini CNY Kids Fashion Week 2017, accessed 20/10/2017,
https://www.youtube.com/watch?v=f1CYjB5X3u8

Reddy, J 2017, Padini Holdings Berhad Is A Malaysia Based Investment Marketing Essay,
accessed 20/10/2017, https://jamilareddy.com/padini-holdings-berhad-is-a-malaysia-based-
investment-marketing-essay/2456/

Social and cultural factors affecting business n.d., accessed 19/10/2017,

https://ceopedia.org/index.php/Social_and_cultural_factors_affecting_business

Swot Analysis n.d., accessed 22/10/2017,

http://www.marketingteacher.com/marketing-environment/

The Sundaily 2017, Online Savvy Shoppers In Malaysia Prefer Mondays [newspaper],
accessed 22/10/2017, http://www.thesundaily.my/news/2017/09/21/online-savvy-
shoppers-malaysia-prefer-mondays

Tischler, J n.d., accessed 19/10/2017, http://smallbusiness.chron.com/macroenvironmental-

forces-affecting-marketing-71632.html

9
PART B
1. Describe the market segmentation variables evidences in the company’s offerings
(service) and explain how you determined this to be true.
Market segmentation is simply a subdivision or part of an overall market with specific and
distinctive characteristics. Market segmentation has become more critical in any business or
marketing plan. As opposed to mass marketing which direct marketing activities to the entire
market, in market segmentation, the marketers tailor marketing to the needs and wants of the
particular market segment.(Recklies.D, 2015) However in segmentation, the first step is to
determine which type of product customer will prefer. Accordingly, that customer will be
from the targeted segment. Who would want the product and whether it falls in the needs
segment, the wants segment or the demand segment. Once the decided product are going to
make, only will carry on the market segmentation. Market segments can be divided into
several ways.(Bhasin.H, 2017) For example the four different types of market segmentation
will be demographics, lifestyles and psychographics, geographic and behavioral
segmentation. The details of each type of market segmentation will be discussed in the
following paragraphs.
First and foremost, the life is one of the widest types of market segmentation used in
the market. Lifestyle and psychographic segmentation are used by the marketers. This
segmentation is advantageous because it allows marketers to engage in product design and
marketing in a focussed manner. It is also an approach that places emphasis on the shared
interests, opinions, attitudes and values of customers. Application of psychographic
segmentation can be seen all across nowadays. For example, Zara markets itself on the basis
of lifestyle, where customers who want the latest and differential clothing can visit the Zara
stores. Similarly Arrow markets itself to the premium office lifestyle where probably your
bosses and super bosses shop for the sharp clothing. Thus, this type of segmentation is mainly
based on lifestyle or AIO. (Bhasin.H, 2017)
Furthermore, geographic segmentation is the type of the market segmentation divides
people on the basis of geography. Potential customers will have different needs based on the
geography they are located in. (Bhasin.H, 2017) This type of segmentation is the easiest but it
was actually used in the last decade where the industries were new and the reach was less.
Today, the reach is high but still geographic segmentation principles are used when you are
expanding the business in more local area as well as international territories. For example, in
cold countries the same company might be marketing for heaters whereas in hot countries the

10
same company might be targeting air conditioners. Thus, many companies use geographic
segmentation as a basis for market segmentation.( Kokemuller.N, 2017)
Besides, other than demographics segmentation is behavioural segmentation. With a
behavioralistic segmentation strategy, marketers target customers based on their interest or
experience with your company or products. With this strategy, according to customers market
segments have shared familiarity with your products. Benefits sought usage, loyalty, prospect
or customer status are common characteristics. Car companies often use benefits
segmentation to target a broad market looking for different benefits, such as economy,
performance, luxury or status. Targeting new prospects is also distinct from targeting brand-
loyal customers. (Bhasin.H, 2017)
The type of segmentation used by Padini is demographic segmentation also being
used by the marketers. Demographic segmentation include of dividing the market into groups
based on variables likes age, gender family size, income, occupation, education, religion, race
and nationality. PADINI has segmentized demographic by focusing on the factor like age,
gender, income and occupation as the important factor to do the continuous targeting.
PADINI has set up 8 brands, which has covered age from baby up to old ages ,gender with
male and also female, income which in the range of RM1000-RM2000,RM2001-RM5000
and RM5001 above, and finally occupation like office-worker and others semi-formal wear
which suit majority occupation. This helps the organization to divide the market into several
groups and target each of these groups to enhance the performance of the organization.
(UKEssays,2015)
Padini Authentics is a brand that reflects individuality and confidence, inspired by
carefree student life, where style is casual and relaxed, a feedback given by the customer.
According to my opinion, I strongly agree that Padini stores provide confidence to the
population as their clothes and shoes satisfied most of the customer at an affordable and
reasonable price especially during promotion time. In Padini store, there are different sections
for clothing, such as sport wear, formal wear, kids wear, casual wear as well as women’s
accessories. Due to their variability of product, the Padini company able to gain loyalty from
the customer because their segmentation is at the range of 7 to 50 years old. The customers
are able to trust and feel satisfied to their clothing materials and quality. Hence, the above
statement is true as Padini stores gives confidence and variety of clothes makes customers
buy from them.

11
2. Provide a profile of the market segment at which you think it is targeted (that is,
describe the characteristics of the target market).

Toddler Teenagers Adults

- Their wear is - Most of them - When they have
clothing for them spending their money to spend,
who have not yet money online they will spend
grown to full clothes shopping their money by
height. because it can shopping with
- Their clothing is
save time, save their friends.
often more casual - They can be under
gas and more
than adult clothing, financial pressure
options
fit for play and - Fad-driven as if they misused
rest. they love trends their money in
- Parents are the one
therefore they buy or chasing
who purchased and
always willing to after trending
choose clothes for
spend money on stuff.
them. - Expenditure is
what is the latest
- They are rapidly
high and therefore
trend.
growing and
- Ever-changing they have to find
therefore they need
because they affordable clothes’
to change their
want to try new shopping.
clothes’ size - For career
things
regularly. - Grown up enough purposes they
- Some of them will
to work but their have to buy
be a picky kid as
salary per month different clothes to
they will choose
is lower than the look smart in
what kind of
people who are working place.
design they want. - Some people
graduated.
- Easily get attracted
- They purchase in desire to cloth
by the graphics
every period as themselves
design of t-shirts
they are growing according to
and skirts.
and need bigger fashionable
size. clothing.

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3. Describe market targeting strategies (e.g. mass or differentiated or niche
marketing) followed by your brand.
Mass marketing is a market strategy in which a firm decides to ignore market
segment differences and appeal the whole market with one offer or one strategy,
(Businessdictionary, 2012) which supports the idea of broadcasting a message through
mass media that will reach the maximum number of people possible. By reaching the
largest audience possible, exposure to the product is maximized, and directly correlate
with a large number of sales or buys into the product. Mass marketing emphasizes on
high sales and low prices and aims to provide products and services that will appeal to
the whole market. (Economicstimes, 2016)
Differentiated marketing is when a company creates campaigns that appeal to
at least two market segments or target groups. Differentiated marketing strategies can
target many more than two segments, shoe companies often create campaigns that
appeal to both men and women in a variety of age groups. Differentiated marketing
strategies can also use different messages in the same campaign for different
segments. For example, a retailer might market low cost to a budget-conscious
segment and product quality to an affluent market segment. (Newton,2015)
Niche marketing is the subset of the market on which a specific product is
focused. The market niche defines as the product features aimed at satisfying specific
market needs, as well as the price range, production quality and the demographics that
is intended to impact. It is also a small market segment. It is highly specialized, and
aiming to survive among the competition from numerous super companies. The final
product quality is not dependent on the price elasticity of demand, but the specific
needs that the product is aimed to satisfy. In some cases, aspects of brand recognition
such as practicability, money saving, expensiveness, environmental, conscience and
social status. (Ward, 2016)
From my point of view, Padini is the company uses differentiated marketing to
promote their new trends of clothes to the market. Padini company appeals to more
than two segments which are toddlers, teenagers and adults which their age ranges
from 7 to 50 years old. The brand, the designation of the interior shop, the labeling of
the stores, communication such as advertising through billboards, online website and
brand strategy different and powerful on the market. Padini hire models to wear their
own product clothes and showing the photos to the customers in public, it creates
attraction from the public to buy their trending clothes. For instance, during public
holiday, Padini will provide discount on every clothes of at least 20% and even more

13
up to 70% to increase their sales or even gives a free angpow packets or recycle bag
for every customer who spent RM200 and above in buying their clothes, shoes and
etc.

14
Part B reference list:
Bhasin. H, 2017, 4 types of Marketing segmentation and how to segment with them? ,
accessed 17 October 2017
https://www.marketing91.com/4-types-market-segmentation-segment/

Economicstimes, 2016. Definiton of Niche Marketing. Accessed on 17 October 2017

https://economictimes.indiatimes.com/definition/niche-marketing

Kokemuller.N, 2017, Marketing Sgmentation Variable & Characteristics, accessed 17

October 2017 http://smallbusiness.chron.com/market-segmentation-variables-characteristics-
69263.html

“Mass Marketing”, 2012. Business Dictionary. Accessed on 17 October 2017.

http://www.businessdictionary.com/definition/mass-marketing.html

Newton, C. 2015. Difference Between Differentiated Marketing Strategy and Concentrated

Marketing Strategy. “Differentiated Marketing”. Accessed on 17 October 2017.
http://smallbusiness.chron.com/difference-between-differentiated-marketing-strategy-
concentrated-marketing-strategy-30462.html

Recklies.D, 2015, Marketinf Segmentation- Why is it Important? , accessed 17 October 2017

http://www.themanager.org/2015/02/market-segmentation/

UKEssays,2017 ,Market and company analysis of Padini, Accessed 20 October2017

https://www.ukessays.com/essays/marketing/market-and-company-analysis- of-padini-
marketing-essay.php

Ward, S. (2016). Niche Market Definition for Business. Accessed on 20 October 2017
https://www.thebalance.com/niche-market-definition-for-business-2947188

15
PART C
Cultural factor is the basic cause of a person’s wants and behavior. It comprises of set of
values of a particular community and has significant effect on individual’s buying decision.
So, marketers always spot cultural shifts to discover new products that might be wanted. For
example, Padini which set up branches in Hong Kong may probably focus on the fashion
design. As most of the Hong Kong people are more concerned on their personal image, they
are willing to spend money on luxurious things to make up themselves rather than savings.
(2016,p10) Hence, Padini will have the potential benefits towards the fashion market. Even
the trend of the fashion change aggressively recently, Padini still can keep the production cost
low and obtain the competitive advantage in the market. (University of California, 2016) On
the other hand, if Padini tend to export their products to some of the more conservative
countries such as United Arab Emirates (UAE) and Syria, Padini must produce the products
based on the enforcement of Islamic codes of behavior and dress as there is some additional
dress requirement at certain religious site. For instance, women are not advised to wear short
skirts and keep their shoulder covered as this is highly offensive. In this case, Padini should
design longer skirts, long trousers and shirts with long sleeves and high neck lines.
In addition, each culture has different subcultures such as common life experiences, religion,
nationalities and geographic regions. Subcultures make up important market segments as
marketers often design products and marketing program tailored to the consumers’ needs. In
this scenario, Padini can eliminate several culture problems in Hong Kong as the culture
between Hong Kong and Malaysia are quite similar. Malaysians, especially Chinese, are
often influenced by Hong Kong’s culture through online. As most of the products are based
on Hong Kong culture, it has indirectly shared their culture with others.
Moreover, every society has some form of social class structure. Social class are society’s
permanent and ordered divisions whose member share similar values, interests and behaviors.
It can be classified into four categories which are upper class, middle class, working class and
lower class. Despite the low production cost, Padini’s products are still in good quality. They
provide various choices of men’s and women’s fashionwear and accessories and also office
wear which is much welcomed by working class and also middle class. Besides the
affordability of price, it will also maintain their good image and status.
Social factors play an essential role in influencing the buying decisions of consumers which
can classify under groups, social networks, family and role and status. Firstly, groups can be
separated into three types which is membership groups, aspirational groups and reference
groups. Membership groups is group with direct influence and to which a person belongs
16
whereas aspirational groups is the group an individual wishes to belong to. Reference groups,
on the other hand, is group that form a comparison or reference in forming attitudes or
behaviour which the members join for seeking opinions. In this case, Padini has membership
groups which customers can apply to be the member of Padini anytime. With the Padini
Membership Card (PMC), customers can enjoy attractive privileges such as getting to
experience the latest fashion and lifestyle trends and also enjoy numerous benefits. Besides,
word-of-mouth influence become the powerful impact on consumer buying behaviour. Some
individuals will identify the reference group such as friends and professional organizations in
order to get some recommendations from them. If their friends have good comment on
Padini’s products, the individuals will definitely buy their products. In contrast, if someone
have bad comments on Padini’s products, they will not spend on Padini’s products.
Secondly, online social network are online communities where people socialize or exchange
information and opinions. Social networking communities range from blogs to social media
sites such as Facebook, Twitter, Instagram and Youtube. Padini have pages in those media
sites to promote their products and raise brand awareness. Besides that, Padini also engage in
programs that broadcast the fashion shows around the clock in the Specially Formulated
Fashion Channel in the satellite TV.
Family plays an important role in influencing the buying decisions of individual. When an
individual gets married and starts a family, most of his buying decisions are taken by the
entire family. In this case, when the parents are loyal to a particular brand, they will have
direct influence to their children. For example, when parents often shop in Padini which sell
affordable and good quality clothes, their children will also buy Miki that is under Padini
which sells children clothes.
Lastly, a person’s position in each group is defined in terms of both role and status. The
buying tendency of individuals depends on the role he plays in the society. Besides that, an
individual may also play a dual role in the society depending on the group he belongs to. For
instance, an individual working as Chief Executive Officer with a reputed firm may be
someone’s husband and father at home. In this case, Padini offer different types of clothes for
their consumers such as casual attire as well as work wear.
Personal factors may also affect consumer behavior. Some of the important factors that
influence personal buying behavior are: age and life-cycle stage, economic status, occupation,
lifestyle and personalities.
Firstly, age and life cycle have a potential impact on the purchasing behavior of consumers as
consumers change their purchase of goods and services over time. There are eight unique
17
brands under PADINI, which are PADINI ,PADINI Authentics, PDI, P & CO, Seed, Miki,
Vincci, and Vincci Accessories that target consumer is due to both sexes and all ages. For
instance, the brand of Padini Authentics focus more on quality casual wear and thus target the
teenagers segment of the market. Besides, the brand of SEED focus on urban office-wear
whereas MIKI target the market of toddlers.
Secondly, economic situation of the consumer has a great influence on their buying behavior.
Marketers always watch trends in spending, personal income, savings and interest rates.
During recession, the economy is struggling due to factors like unemployment and
fluctuation of interest rates and thus most people earn low income and low savings.
Subsequently, the consumers lose their purchasing power and the sales of Padini will also be
affected. On the other hand, the sales of Padini definitely rise during expansion as a result of
increasing in purchasing power as most of the people will earn higher income and savings.
(Stephanie.L,2017)
Another factor affecting consumer buying behavior is the occupation of a person. People that
work in the office may need more formal attires whereas the others may need casual clothes.
In this case, we can conclude that Padini is a ‘one-stop shopping’ store as it sells clothes for
office workers and also other semi-formal wear which suits majority occupations.
The next factor is lifestyle which refers to the way a person lives in a society and express
things in their environment. Lifestyle involves AIO dimensions (activities, interests and
opinions) factors which affect purchasing behavior of consumers. For example, Padini
Authentics focuses mainly on quality casual that caters for college lifestyle which provides
wide variety of products ranging from clothes, accessories, caps, bags and many more with
affordable price that satisfies its customers.
Recently, major marketers studied and discovered the link between personality and consumer
buying behaviour. Products are often created to have ‘brand personalities’ which can greatly
influence the buying behaviour of consumers. For this reason, Padini are trying to match the
image of their products and services to what they perceive as the self-image of the customer
prospects. In this case, Padini provide a variety of quality products with different types of
brand personalities in order to ensure the customers choose the brands that match their own
personality to seek satisfaction.
There are four major psychological factors that influence the buying behavior which are
motivation, perception, learning, belief and attitudes. Firstly, the level of motivation affects
the purchasing behavior of customers. According to Maslow’s hierarchy of needs, it can
comprise of psychological needs, safety needs, social needs, esteem needs and self-
18
actualization needs. It proposed that people are motivated to fulfil the basic needs before
moving on to meet higher level growth needs. For example, consumers’ psychological needs
will be fulfilled due to the reasonable price and good quality of Padini’s product as clothes
and shoes are the basic needs for everyone. Padini also satisfied higher level growth needs of
consumer (esteem needs and self-actualization needs). The prominent brand of Padini family
includes Vincci, Miki, Seed and Padini Authentics which sell a variety of quality products to
the consumers such as urban office-wear, casual wear and some shoes made from synthetic
material. Thus, self-confidence is gained and consumers’ status are shown when they wear
those stylish clothes.
Moreover, select, organize and interpret information in a way to produce a meaningful
experience of the world is called perception. There are three different perceptual processes
which are selective attention, selective distortion and selective retention. In selective attention
stage, sellers try to attract the attention of the customer. Whereas in case of selective
distortion, customers try to interpret the information in a way that supports what customers
already believe. Similarly, in the case of selective retention, marketers try to retain
information that supports their beliefs. With the recent development of the Malaysian fashion
retail industry, there has been an increase in the adoption of loyalty programmes. Major local
fashion retailers, such as Padini, operate their own loyalty programmes (Padini Membership
Card) have received a good response from their consumers. In the consumers’ perception,
comparing with nonmembers, they think that these loyalty programmes have provided
exclusive benefits and privileges to them. For example, PMC members are able to enjoy 5%
point rebate on total purchase based on the calculation of annual basis. Furthermore, special
promotions and the birthday discount card will also be mailed to them during their birthday.
Therefore, it become a motive and directed the consumers to keep loyal to the brand of Padini
to seek satisfaction.
Lastly, client has specific beliefs and attitudes towards different products such as clothes. As
such beliefs and attitudes shape the brand image and affect consumer buying behavior, traders
are interested in them. Marketers can change beliefs and attitudes of consumers with special
campaigns in this regard. Hence Padini often use social media, flyers, posters or magazines to
make up good images of their products and make the consumers to have correct belief toward
their products. Consumers of Padini may certainly have the wrong belief on the quality of the
clothes and the attitudes of the promoters. Also, effective motto will become one of the ways
to fit their products into existing attitude patterns. Padini good motto “Loving from the heart”
will put people into a frame of mind of liking and move toward them.
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ONLINE SURVEY FROM CONSUMERS

Appendix 1
Yes 31 62%
No 19 38%

Are the consumers aware that Padini Authentics and Padini sells different types of
clothes?
62% of the respondents are aware that Padini Authentics and Padini sell different types
of clothes. However, a percentage of 38% of them are not aware of this. This percentage
shows that even the person who knows the existence of the brand does not know the
difference between both the brands.

Appendix 2
Affordable 13 26%
Good Quality 27 54%
Comfortable 19 38%
Expensive 10 20%
Attractive 10 20%
No idea 11 22%

How do consumers describe Padini Authentics compare to its competitors ( F.O.S,

Giordano,Tropicana Life)?
Compared to the other brands, the respondents described that Padini Authentics have the
good quality and comfortable brand by majority of them.

Appendix 3

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Design of the clothes 17 65%
Quality 11 42%
Price 9 35%
Promotion 13 50%
Advertisement 3 12%
Trend 5 19%
Material 7 27%

What brings the consumers to purchase Padini Authentics products?

The reason that drives majority of the respondents to shop in Padini Authentics was firstly
because of the design of the clothes, and then followed by the promotions, quality, price,
material, trend and the advertisement.

Part C Reference list:

University of California, 2016, A Case Study on Padini Malaysia Essay, accessed 22 October
2017, https://studymoose.com/a-case-study-on-padini-malaysia-essay#

21
YH.T, 2009, Consumer Perceptions Toward Fashion Retailer Loyalty Programmes and Their
Impact On Consumer Loyalty, accessed 21 October 2017, available at
http://studentsrepo.um.edu.my/3400/6/CH_5.pdf

Davadas.N. 2013. Padini Authentics Situation Analysis. Scribd. Accessed 27 October 2017,
Available at: https://www.scribd.com/doc/121653515/Padini-Authentics-Situation-Analysis

Lee. S. 2017. Economic Factors that Affect Consumer Behavior. Bizfluent. Accessed 28
October 2017, Available at: https://bizfluent.com/info-7920459-economic-factors-affect-
consumer-behavior.html

22
PART D
A communication tool is the specific device or product that carries a communication
message to a target group for instance through internets, apps and emails. There’s a variety
forms of tools, each with their unique strengths, limitations, costs and characteristics which
structure and present factual information in a fashion that helps the audience understand.
There’re two types of communication tools which is one-way communication and two-ways
communication. The choice of tools will depend on the communication goals, the profile of
the target group, the various advantages and disadvantage of each tool, and the
communications budget.
In one-way communication, information is transferred in one direction only, from the
sender to the receiver. There isn't any opportunity for the receiver to give feedback to the
sender. On the other hand, two-way communication involves feedback from the receiver to
the sender. This allows the sender to know the message was received accurately by the
receiver. Communication is also negotiated which means that the sender and receiver listen to
each other, the messages then gathers information to respond.

Padini spread their market by advertising through magazine which is known as one-
way communication tool. As we can see from the picture above, Padini have establish
themselves to the front page of Female magazine. We are aware that Female magazine is one
of the top leading magazines in Malaysia that can be purchased from the retails. This shows
they are actually publishing their products on their new collection of sizzling fall/ holidays
trend. According to the Malaysian Magazine Industry - Statistics & Facts Magazine retail
sales have dropped from about 103 million in the end of 2014 to about 75 million by the end
of 2016. This statistics proof that most of the people have shift their reading behaviour and
move to the social platforms such as Facebook, Twitter and etc. In my opinion, based on the
statistics result, I believe that magazines that act as a communication tools are no longer
effective and social media has taken place in our real life.
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 Newsletter is another one-way communication tool that is commonly used in today’s
world. It is basically an email direct marketing which is very important in a business as it
brings the message directly to the targeted audience. Nowadays, people are relying
everything on the internet, especially teenagers, so it will be way more effective sending
emails to the target market than sending postcards or catalogues to the consumers. Newsletter
is one of the communication tools used by Padini Holdings Berhad to provide their latest
updates to their target market. Consumers are given an option to fill up their email address or
not when they enter Padini’s online website, so it will not create any annoyance to the
consumers who are not willing to receive any emails. In my opinion, newsletter is an
effective communication tool because after the consumers sign up for Padini’s newsletter,
they will collect consumers’ personal particular and provide their consumers with more
information about their products, services, contests, sales and promotions.

Following the growth of social commerce, this shows enormous potential for retailer
to connect with buyer on their favour platform. According to a statistic, 30% of online
shoppers are more likely to purchase from social media networks which is considered as two-
ways communication tools, such as Facebook, Instagram or Twitter (Ecommerce Trends: 147
Stats Revealing How Modern Customers Shop in 2017, n.d.). Padini also spread their market
by advertising through these social medias in order to gain more attention from online
shopper. Padini had created their official Facebook page, Padini Holdings, on 2014. It has
more than 500,000 people liked and followed their page, however Padini failed in seeking
their consumers’ attentions which can be seen through the number of likes of the posts that
posted on their page. Their highest number of likes of Facebook posts are 4000, which means
not even 10% of their followers are paying attention to their posts. It has proven that Padini is
not effectively communicated to the target market through Facebook. Besides Facebook, in
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my opinion, they also failed in advertising at Instagram as their followers are very less
comparing to their competitor such as H&M. It can be evaluated from the number of
followers, likes of the posts and the most importantly is the comments, which is considered as
the feedback and also an attention from their target market. In addition, Padini also created
Twitter to advertise their products. Padini updated a lot of posts, such as promotions of the
week and the launching of new arrivals to seek their followers’ attention. The promotion of
the week, such as updating of stock clearance which has only 15 likes and 26 people shares
their post. It shows that it also failed in advertising in Twitter which can be evaluated from
the low response from the followers. Nevertheless, this statement can be supported by the
number of likes in the whole Twitter page is only 12. (Appendix 1)

Communication Campaign
Corporate Social Responsibility of Padini (CFTH)
According to Padini Holding Facebook page, on the 18th October 2011, Caring from the
Heart (CFTH) committee has bring up a charity campaign at Pusat Jagaan Rumah Kasih
Sayang SLCH located in Bukit Baru, Melaka. 24 elderly people are in that home, including
groups of the less wealthy. Consist of different races as defined as “1 Malaysia” home which
consist of different races such as Malay, Chinese, Hindu and also Serani. Desperate needing
of money since their monthly expenses is RM10,000.00 per month. 43 participants from
Padini Holdings joined the event (including 12 representatives from Headquarters, especially
from Melaka outlets express their great dedication, engagement and care towards folks of the
home. Money is collected for the personal needs of the people in the home. Lunch was
offered align to the campaign. The campaign started off by welcoming the founder of Padini
to the home. Padini Holding proudly establish about 40 years and celebrated 40th
Anniversary of Padini. Padini gave their donation RM4,500.00 in cash and more than
RM800.00 in kind to the home. This amount was collected from the sales of drinks during the
2 days Warehouse Sales that was held on 30 September 2011 – 01 October 2011 at Padini
HQ. They also gave away 2 boxes of clothes 2 boxes of clothes. This program has been
carried out successfully. Not only we help to lessen their burden but also brings them joy in
celebrating the coming Deepavali. Padini would also like to deeply thank all participating
staff involved for their time and compassionate actions. The benefit after this campaign that
Padini holdings able to bring joy and lessen their burden in celebrating coming Deepavali.
Nevertheless, this programme has given a great impact to community and enhance their good
reputation of their company-Padini.
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Reflection:

Based on the Lazada image above, it showed that there is 5 out of 5 in the average product
rating. This shows the maximum rating achieved by Padini for these particular materials
which is the newborn baby summer infant girl painting romper jumpsuit clothes set. This
rating justifies that Padini is making profit from this website. From the review below, we can
know that the customers satisfied with the quality of materials as it mentioned “material is
soft”.

Padini’s Fashion Shows

Besides than Corporate Social Responsibility of Padini (CFTH), Padini organized a “Penang
Fashion Week” in order to triggers a stylish start at the Gurney Paragon Mall at Gurney Drive
here as the international brands and homegrown labels stole the limelight in a series of
runway. This has resulted in the way that a lot of people was attracted as well as industry
luminaries over the weekend. Malaysians icons Datuk Jimmy Choo and Amber Chia the local
artist attended this Padini Fashion Show’s gala opening alongside state Tourism Committee

26
chairman Danny Law and Star Publications (M) Bhd’s executive director Tan Sri Kamal
Hashim. On Saturday which is the 18th April 2015, there were fashion shows featuring
Padini’s various brands, followed by local designer unveiling one-of-a-kind “black to black”
creations. The models were wearing their new products in specific malls such as Gurney and
Mid Valley, this will cost lesser. Through the fashion show form Padini, the public were
aware of Padini’s clothes fashions, which is simply and trending. It can attract the attention
from the customer to their models during their Fashion show. The publics are also aware of
the brand of these nice clothes and Padini has successfully implanted their brand name in the
mind of more of people. The company invited some fashion professionals, helping them to
promote and advertise their company well. There are 8 unique brands under Padini, which are
Padini, Padini Authentics, PDI, P&CO, Seed, Miki, Vincci, and Vincci Accessories. All of
these brands clothes, jeans shoes as well as accessories such as handbags and necklaces were
the brands wore by the models while modelling on the stage. However, Vincci, and Vincci
Accessories are more focused on flexible tastes of woman consumers bags, shoes and
accessories. Therefore, they were attracting quite a number of women who loves their
designation. By organizing fashion show, Padini brought education of fashion to the public.
(Star, 2015) Secondly, apart from adult fashion show, on the 2nd February 2017 which is
Chinese New Year period, at Sunway Putra Mall, Padini organized kids fashion show by
having little cute kids modelling on the stage. This kids fashion show has promoted not only
Padini adult’s clothes but also kid’s trending clothes to the mothers, as it has more choices for
kid’s clothes. It encourages especially the mothers to buy their child more good quality
clothes. This kids fashion show also provides the little kids to have a stage to perform and an
opportunity to learn cat walk while modelling on stage and take it as an experience for the
children. The good quality of children’s clothes offered at an affordable price and have good
quality. Last but not least, Padini Group have signed an exclusive 10-year deal with F J
Benjamin Group who has 30 years of experience in Indonesia. During this period, Padini has
expanded their outlets to Indonesia and Padini are confident that Vincci fahion products will
find favor with increasingly affluent Indonesians. The expansion of Padini outlets to
Indonesia lead to another level of fashion to Indonesia, bringing Indonesians more insights of
wearing trending clothes in daily life. At the same time, Padini allows the Indonesians to be
able to buy affordable, trending yet good quality of clothes, shoes and accessories at
reasonable prices, allowing the Indonesians to enjoy the worthiness of buying their clothes.
(InsideRetail, 2012)

27
Appendix 1

https://twitter.com/padini_tw?lang=en
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Part D reference list:
Ecommerce Trends: 147 Stats Revealing How Modern Customers Shop in 2017 n.d.,
accessed on 28/10/2017, https://www.bigcommerce.com/blog/ecommerce-trends/#cmtoc
anchor id 10

Inside Retail Asia, 2012, F J Benjamin in Indonesian venture, accessed 28 October 2017,

https://insideretail.asia/2012/08/08/f-j-benjamin-in-indonesian-venture/

Tan,J, 2015, Great start to Penang Fashion Week [newspaper], The Star, accessed 28 October

2017, https://www.thestar.com.my/news/nation/2015/04/20/great-start-to-penang-fashion-

week/

29