A.

Market Positioning
PantSaloon will be established as a customized jeans maker
For college students and the young adults,
that offers flexible, unique and creative jeans
with perfect fitting and comfort
to the level of the customer's choice of fabric, cut and over-all design.

It is PantSaloon’s advantage to become a specialized clothing servicing store that will emphasize
wide-ranged creative designs, styles and fabrics along with the perfect fit and comfort to the
customer.
PantSaloon will be known for its uniqueness, flexibility, creativity, and innovativeness. These
youthful characteristics will make the whole perception of the store away from the tailor shops
that are usually associated with being stiff and traditional.

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 custom-made 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.

B. 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 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 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.

C. 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
Page 1 of 4
are willing to pay 500 to 1,000 pesos for custom-made jeans. EALA Inc. decided to price its
jeans from 800 to 1,000 pesos depending on the customizations made on the jeans.
Since PantSaloon is a specialty store, we can set a medium-ranged premium in all prices.
Mark-up percentages will range from 100% to 150% of the variable costs that will include
direct fabric materials and manufacturing labor.

D. Promotions
1. 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 first three months:

• Establish awareness of the stores existence among residents and students within Katipunan
area
• 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
• 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
Page 2 of 4
 • 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.
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.

2. 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
• 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.

Market positioning
customized jeans maker
for college students and the young adults
offering flexible, unique and creative jeans,
and perfect fitting and comfort
of the client's choice of cut and fabric
Page 3 of 4
product
Symbol of creativity, uniqueness and expression of individuality

Place
2/F Drews Bldg. Katipunan, QC
near to target market
perpetual growth of the student market

price
Php 800-1000 per pair
middle-ranged premium on prices

promotions
- launching cum fashion show
- marketing efforts for brand awareness
- tie ups with fashion and urban magazines and lifestyle TV shows

Page 4 of 4