Khaadi and Ideas Retail Mix

Assignment

Retailing (50744)

Submitted to: Mr. Adnan Ahmed

Submitted by: Tazmeen Fatima Khan (14727)

Date: 4th February 2021

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 A Retail Mix:
A retail mix is defined as a mix of variables depicted below. A well-articulated retail mix
allows the retailer to understand their position in the market and help differentiate themselves
as well. Retail mixes may also vary depending on the store and type of product offered to the
end consumer. The retail mix is also often referred to as the “6 Ps” as depicted below:

Retail Mix:

Taking all the six variables of the mix into consideration, the needs and shifting behavior of
the target market can be better assessed and allows the retailer to devise a more efficient
customer-centric strategy.

Keeping the above mix in mind, the retail mix of Khaadi and Ideas by Gul Ahmed are
discussed in detail below. Khaadi and Ideas are direct competitors in the Pakistani Fashion
Retail Market.

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 Khaadi:
Khaadi is a market leader in the Fashion Retail Market, with more than 50 stores in 17 cities
across Pakistan, and 22 stores Internationally.

Product:
Over the years, Khaadi has expanded its product categories, ranging from clothing to bags
and most recently, skincare. The defining and differentiating attribute of these products is the
ethnic look and background. Due to the target market ranging from young females to middle
ages married women; the products now also feature fusion designs to be considered by both
segments. Additionally, the service each consumer experiences on their purchase journey is
also efficient and fast.

Promotion:
Due to the recent popularity of social media platforms, Khaadi also has a very active online
presence which it uses for advertising and PR purposes. The platforms such as Facebook
and Instagram are used to highlight how Khaadi is now a brand moving towards
sustainability and often sponsors known fashion personalities and influencers for effective
PR. Other than that, Khaadi invests considerably in billboard and TVC advertising.

Presentation:
Bright colors, ethnic themes and wooded atmosphere; are key presentation elements of all
Khaadi stores. The merchandising strategy is also very efficient; entering the store you are
hit with very bright colors and the store has two paths; one leading to Pret and other to
unstitched collection with skincare and accessories in the middle. Mannequins are also
utilized.

Place:
The LuckyOne Khaadi retail outlet was visited for this assignment. Khaadi is known to have
a comfortable, spacious environment for consumers. The retail store mapping is done
strategically, so that each consumer spends more time exploring and hence, creating more
footfall and sales. Khaadi retail stores can be found in most major locations all around
Pakistan, and operating hours are usually 10 am to 8 pm currently, due to the pandemic.

Personnel:
The store managers and retail workers are also always well-versed and presentable, with
adequate knowledge about product categories, levels and any discount offer if any. They are
divided into different areas. A differentiating factor is that some workers are dedicated to the
changing rooms to make that process comfortable and time-efficient to avoid customer rush.

Pricing:
In recent years, Khaadi has increased its prices quite drastically. This can be attributed to the
economical fluctuations in the textile industry and in the country as well. Although this did
not affect the consideration set of target market as much, as Khaadi targets SEC B and above.

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 Ideas by Gul Ahmed:
Ideas is the retail brand backed by Gul Ahmed Textile Mills Limited and one of the most
popular brands in the fashion retail market.

Product:
Ideas has a very vast product assortment. There are three major product categories: Women’s
clothing and accessories, Men’s Clothing and Household assortments such as bedsheets and
towels. Additionally, Ideas also has sub-brands such as Salt which is more about western
female wear. This is separate as Ideas does not want to confuse its main target segment.

Promotion:
Quite like Khaadi, Ideas is also very active on social media platforms but are more well-
equipped to use celebrities and influencers in their TVCs and campaigns. Most recently, in
their great sale campaign, many notable influencers were sponsored to create digital content
and be featured on shopping bags and billboards and TVCs.

Presentation:
The entire emphasis in the retail Idea stores is on shelf display, and comparing to Khaadi, the
presentation of Ideas is less sleek and inviting. While Khaadi stocks an adequate number of
clothing, Ideas is known to fill shelves with as much stock they can. This creates a haphazard
theme and consumers often go through them quickly, thus spending less time. The
accessories such as purses and footwear are often found near the payment counter, which
encourages consumer’s attention while they wait to pay and often wander in that category,
leading to sales.

Place:
Khaadi has more retail outlets compared to Ideas. While Khaadi has many stores that are not
in malls, most Ideas stores are located in a mall environment. Ideas does not use a lot of space
and there is also not much emphasis on colors or creating an Ideas store-specific theme;
instead, the focus is on consumer efficiency and functionality. Although, as mostly Ideas has
price reduction campaigns and a lot of consumers visit the store, the less spacious
environment can become frustrating.

Personnel:
The customer service workers at Ideas are also well-versed with customer handling,
especially since the brand has much more sale campaigns compared to Khaadi. Although,
they are often found following the customer too much which can be inconvenient for many
customers, as most do not find the clinginess helpful.

Price:
Ideas is perceived as a cost-efficient brand due to its standard pricing that suites its target
segments of SEC C and above. But even more so due to the high frequency of discount
offers that happen throughout the year.

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