V.

Marketing Mix

A. Product

As can be observed, majority of the brands in the market offer jeans that
are ready-to wear which do not actually correspond to the actual fit of
each and every consumer. This has become a pressing concern for most of
the college students and young adults as they would always spend
difficult times finding the jeans that would fit right. Although alterations
could be done to repair the clothes’ dimensions, more often than not, the
process can possibly ruin the style or design of the product. EALA Inc. was
able to understand the problem that today's youth face hence the reason
of coming up with the idea of PantSaloon, a brand that will provide jeans
that would perfectly fit them at their own wanted cut and design.
PantSaloon's service is geared towards addressing the usual problems that
college students and young adults always come across with. Thus, the
cuts, fabrics and dimensions that shall make up our jeans will be made
customly in order to give our target market the right fit and the right
comfort match their body frames. Moreover, our house designers will
create trendy collections and will also regularly update the design and
style of our jeans thereby conceiving a uniquely stylish boutique that
perfectly matches the today's youth.

Features
Themes. The world of fashion moves in a relatively fast paced track that
we need to continuously plan and innovate designs in order to keep up
with the present and forthcoming trends. Consequently, PantSaloon
fashion shall exert efforts in providing jeans and pants that are
appropriate to the current fashion themes, but would still refer to the
customer’s requests. In order to offer this, EALA, therefore has to
constantly search for the latest trends on the web, magazines, and
catalogues, and should also be keen in observing how prominent fashion
figures project themselves through the clothes they wear. In addition, we

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will seek advices from fashion enthusiasts and hire in-house designers
who will assist us in keeping up with the current fashion statements.

For the introduction of the venture, EALA will issue the first collection of
four designs showing off the brand’s capabilities of producing stylish
pants. The designs are flexible enough to match any kind of cut that the
customers are openly comfortable with. The designs will include the
following:

PS 1 – pant designed with detailed stitching

PS 2 – jean designed thru deconstruction
PS 3 – jean showcasing pocket embellishments and beadings
PS 4 – jean showcasing pocket embroideries

PantSaloon will introduce new designs and keep up with it by having

quarterly themes, depending on the forecasted demand and clamor of
fashion aficionados.

Colors and Fabrics. Since the business is basically selling on the over-all
individuality of the customer, PantSaloon, will offer a wide array of colors
of jeans and other types of fabrics used for pants like denim, corduroy,
twill and canvas. Colors will be pre-approved by the house designers as
they know which colors are matching the kind of fabric.

For denim, we will have stretch and non-stretch. We will also soft and hard
jeans. In addition to that, PantSaloon will also offer good kinds of
bronzed/metallic jeans, dark-colored and the light colored ones. For twills,
an array of such colors, from black to khaki to white, will be from offered.
Same thing goes with corduroys and the canvases.

Special fabrics like army cloth and checkered fabrics will also be provided
for those who want an older look.

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Product Line. The initial product line will consists of all-jeans collections.
PantSaloon will be focusing on the manufacturing of its core product and
will make sure that expertise in such activity will be achieved in the first
three years. Variations of pants like shorts and skirts will be offered as well
on seasonal basis or if the customer requests for it. The entire jean
collections shall revolve in a tagline that will promote personal adaptation
of the jeans to the customer's fitting such as: Makers of the jeans
specially-made for you.

On its fourth year of operations, PantSaloon will open its array of t-shirts
that is in line of the objectives and target market of PantSaloon. It will
invest in opening statement-shirt venture where customers can have their
personal statements printed on their shirts.

Two years after that, PantSaloon will be opened for jacket-customization.

Other merchandise and accessories, like bags, wallets belts and leather
bracelets will be offered as well.

Maintenance of the merchandise and service offerings will be observed

and assured through the years. Designs will be improved and updated to
make sure that the taste of the moving target market is kept captured.

Augmented Products. Aside from the stylish jeans collections,

PantSaloon will also hire friendly and accommodating trained personnel to
make the customer’s experience within the store something to be
remembered and repeated. They will be called Jeans Engineers. Such label
will give an impression that the personnel are all technically trained to do
create the perfect jeans for the customers.

Today, people are much more concerned with the environment and
PantSaloon understands that. Thus, our store will only utilize stylish
reusable paper bags and not the plastic ones in order to contribute to this
cause. Customers do patronize companies that operate with a heart. In

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recognizing our responsibility to society, this is not to be done for
promotions alone but also for the greater good of the community.

Also, PantSaloon will have spacious fitting rooms for comfort, which
needed so customers can appreciate the beauty of the product that our
store has to offer. Oftentimes, students and young adults do not come
alone. They have companions like friends, barked and colleagues with
them that's why PantSaloon is putting a waiting area composed of mini
sofa and beanbags. Fashion Magazines like GQ and InStyle will be
available as well for fashion references.

Almost all major shops accept credit cards and this will be the same for
our store. PantSaloon understands the hesitance of some shoppers in
bringing a lot of money for shopping.

Added to that, to make the experience very relaxing and worthwhile, we

will also play feel good music. Surround mirrors will also be put up on the
walls so potential customers can know right away if the product looks
good on them without having to fit the clothes. Promo giveaways such as
posters, pocket calendars and key chains will be given to buyers so they
can remember our store all the time.

An after-sale service, like alteration, will be offered for free to make sure
that the jeans stay fit to the customer.

B. Price

Prices are set according to the positioning and image of the brand. Items
at PantSaloon will cater to the needs and interests of college students and
young adults in the Class A, B and C brackets of the Katipunan area.
Survey results have shown that 43% of the total respondents are willing to
pay 500 to 1,000 pesos for custom-made jeans. EALA Inc. decided to
extend the prices of the more elaborate clothing design to a maximum of

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P2,500. These price ranges are strategically set to mean affordability
against Viktor, while the appreciation of higher price against ordinary
shops speaks of higher quality.

Since PantSaloon is a specialty store, we can set a medium-ranged

premium in all prices. Mark-up percentages will start at 150% to 300% of
the variable costs that will include direct fabric materials and
manufacturing labor. The assumed costs are at minimum orders of 30
jeans order in different sizes already. Appliqués and other design materials
for the clothes are excluded from the basic manufacturing cost.

C. Place

It is best to put up the clothing store in the area where the business can
easily tap its target market. For this particular reason that is why
PantSaloon will be initially put up in Katipunan. It will specifically be
located in the second level of Drews Bldg, right behind Shakey’s.

One apparent reason for putting up the store in the Katipunan area is that
the place is relatively accessible to college students in the higher social
strata. Just right outside the store is Ateneo, which happens to be the
perfect representation of the target market.

The location also has the ability to pre-determine the clients of the store.
Katipunan, among any other areas in Quezon City, has high commercial
and residential land value. The target market is centralized in the area,
such as those who are residing in La Vista, Loyola Heights, and Xavierville
Subdivision.

As a new entrant in a relatively new market, jean-customization,

PantSaloon needs to establish a very strong niche first before moving up
or outside that niche. For PantSaloon, the locality is of Katipunan is the

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best place to put the business up as the target market is literally
centralized in the area.

EALA Inc. is looking also to the fact that the studentry market is forever
active because of the annual entrance of freshmen to the academes. It
only means that the market will never be saturated because every year, a
group of new students will be replacing the touched market of the
graduating students.

PantSaloon will maximize all its effort is tapping the Katipunan market
before it actually expands to other communities. EALA Inc. is looking for
pursuing an extension in highly urban areas like malls, where the same
profile of the current target market is located.

Beyond the ten years of operations, the store will continue expanding to
other relatively urbane malls such as Gateway and Glorietta. The group
will also consider locating to other parts of the Metro such as Alabang
Town Center in the South.

D. Promotions

Short-Term Promotional Activities and Goals

For the first three years of the business operation, the company will
aggressively advertise the brand and products among students and young
adults residing within Katipunan area. As much as possible, EALA Inc.
chooses to find ways of doing the necessary promotions without having to
pay much. The company cannot afford to engage in costly advertising
efforts in our first years hence, product offers and gift certificates shall be
done to promote the business instead.

Goals for the three months:

• Establish awareness of the stores existence among residents and
students within Katipunan area

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• Attract initial customers to enter the store, window-shop, and render the
PantSaloon service
• Have the “first buyers” spread the good news (word-of-mouth
advertisement)

The store will be opening on January 1, 2007. The first three months will
actually be the trial period and all activities will be noted for future
assessment. For this period, operations should be personally handled by
the owners.

It is EALA Inc.'s concern to make sure that the shoppers will immediately
notice the store. The interior design of the store itself will serve as an
initial “come in” advertisement. Industrial and post-modern look will also
be the theme of the store to highlight the 'engineering' of jeans. White
and bright, warm lighting shall be used in place to enhance the color of
the jeans and project a classy ambience. Experts also said that this kind of
lighting makes one more stunning because the natural color of the skin is
yellowish.

Displays include the prototype designs of the collections and the sample
fabric that they may choose from. Framed posters showing patterns as to
how jeans are made will be placed around the store. Staff and personnel
will also wear shirts that have "Pants Engineer" print to emphasize that
jeans that PantSaloon makes are all made especially for the customer.

The objective is for the customers to get an idea of the nature of

PantSaloon service. What a better way to win over window shoppers and
actually convert them to actual buyers!

Goals for the second quarter of year 1:

• Make noise, have the media press notice the PantSaloon brand
• Encourage repeat buying by giving special services
• Begin to establish brand equity

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• Attract prospective loyal customers

After the assessment of market response during the first three months of
operations, EALA Inc. will launch PantSaloon in a fashion show and concert
party. A ribbon cutting to be led by the owners and top fashion celebrities
will kick-off the party. Fashion show will showcase three sets of collections
from the in-house designers of the store. For this fashion show, PantSaloon
will not only use the skinny-type girls and boys as models. EALA Inc. will
incorporate diversity in the 'reality' of the actual users of the jeans. This
will include the petite type and the chubby types among others. The
concert on the other hand will showcase hit bands. The bands' vocalists
will wear a pair PantSaloon jeans during their performance.

Press and media people from fashion magazine publications and lifestyle
TV shows will be invited. MTV or MYX will also be invited to cover the
program for a wider media mileage.

Goals for the second half of year 1:

• Start establishing relationships with the print ad media
• Develop further the equity and image of the PantSaloon brand

At this stage, PantSaloon will begin to implement aggressive marketing

efforts by sponsoring photo shoots of leading magazines for college
students and young professionals. The initial product line will be seen in
the glossy pages of Summit media publications, which include Seventeen
and Cosmopolitan magazines and Metro’s Chalk magazine.

According to the Marketing Manager of a leading clothing brand,

PantSaloon can have the products advertised in this way for free! All we
have to do is have the fashion editors notice the PantSaloon brand and
promote its products.

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In addition, the store will begin to offer limited editions of about 10 to 15
pieces of certain items, part of which will be given to famous celebrities
and other personalities who are regularly doing modeling stints in the
magazines stated. They will eventually serve as the shop’s sort of “free”
endorsers. Hopefully by this time, PantSaloon will be seen regularly in the
monthly issue of the said magazines. Many are already doing this. It was
observed that exclusivity and scarcity of a fashion item particularly when
seen on models, increases its desirability especially to the fashionistas
among others.

Goals for the second and third year of the operations:

• Participate in the online and TV advertising campaign
• Update the customers and non-customers alike about what’s happening
in the PantSaloon boutique
• Establish personal relationships with the customers

The PantSaloon website will be developed to further inform the consumers

about updates on the latest fashion tips and ways of taking good care of
jeans aside from the items and promos the store will be offering. The
website will also feature a web page for customer feedbacks, suggestions,
and requests. Store profile, brand advertising, and pictures and prices of
the latest items will be featured as well.

There are TV shows that offer free guest appearances of promising

entrepreneurs or exposure of newly established stores. Examples are
Breakfast Supersize, Wazzup Wazzup and Us Girls of Studio 23. PantSaloon
will grab the following opportunities in exchange for free jeans service.

Long-term Promotional Activities and Goals

Goals for the third year of operations onwards:
• Induce repeat buying behavior among customers
• Shift from taking on sponsorship deals to being regular advertiser in
premier magazines

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• Gain stronger customer loyalty
• Have regular customers anticipate for the store’s latest offers
• To continuously capture a larger share of the market
• Choose a famous personality model that will best represent the brand
image
• Have the customers’ trust, appreciation and have them look up to the
PantSaloon brand
• Achieve a total awareness of the brand among the upper class societies

By this time, the group will now have the ability to pay for an entire
advertising page on glossy magazines. PantSaloon will continuously
conduct fashion shows showcasing the new styles available. Re-launching
will be done in the PantSaloon's 4th and 6th year of operation as it widens
its product line by offering customized statement shirts and jackets on the
said years.

PantSaloon will also continue to give commemorative items like notepads

and calendars on special occasions.

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