Pamantasan ng Lungsod ng Maynila
(University of the City of Manila)
Gen. Luna Corner Muralla St., Intramuros, Manila
PLM Business School
A RETAIL PLAN FOR:
In Partial Fulfillment for the Subject: Retail Management
Submitted To:
Prof. Anna Miranda
Submitted By:
Occupado, Paulino
A. ASSESSMENT OF THE MALL
Target Market Description
According to Josie Go, CEO of the company, the target customers of Karimadon are
women ages 18 to their late 40s. These are middle class and upper class consumers looking for
ready-to-wear, expertly crafted, reasonably priced designs that are comparatively original. The
"shadow market" of teenage clothing shoppers has been referred to as frequent purchase
behaviors that have developed over time. Karimadon makes sure that all women can depend on it
to make them feel special, confident, stylish and beautiful wherever they go.
Positioning
After being founded in the Philippines in 1980, Karimadon has established a name as one
of the most lasting clothing brands. The company is renowned for its affordable, high-quality
RTW or ready to wear formal wear, special event dresses, and gowns. Karimadon puts a
premium on a good fit, seeks out the best materials and manufacturers, and creates items that are
always in fashion. They take pride in the fact that all of their pieces are designed, manufactured,
and sold in the Philippines.
SWOT Analysis
STRENGTHS WEAKNESSES
● Over 40 years of experience in the ● Rarely update and post on social
industry media platforms
● Manufacturer of their own clothes ● Weak social media presence
● Easy to locate in SM North EDSA ● Lack of material for promotions
● Quality yet reasonably priced clothes
● Offers bespoke custom clothing
OPPORTUNITIES THREATS
● Redevelopment of the store
● Competitors in the mall
● Growing E-commerce and social
● Promotions of competitors
media in the Philippines
● Some people prefer to rent or borrow
● Personalities who uses their products
formal wears rather than buying their
own
Strengths
Karimadon's market expertise and clients' trust in the brand provide them a significant
advantage. Over 40 years have passed since Karimadon first entered the industry. They are aware
of what their target market prefers as a result. Additionally, because they produce a large portion
of their own clothing, they are able to respond quickly to market demands. Their customers can
rely on them in having what they want and when they want it.
Furthermore, SM North EDSA's Karimadon branch is simple to find. It is conveniently
located on the second floor of the city center, beside other stores that sell women's clothing,
making it simpler for customers to find the store. In addition, Karimadon's rich and high-quality
pieces that are yet reasonably priced make it a great choice for customers who want a trendy
outfit of excellent quality but don't want to break the bank. Customers can also order
personalized apparel from the store, which allows them to select the ideal fabric blend and
chosen pattern.
Weaknesses
Karimadon's social media channels are rarely updated and posted on, which causes some
customers to be less engaged with the brand. The majority of the company's recent updates on
their social media sites only receive 10 to 30 likes, in comparison to before, when the company
received thousands of likes on their postings. Furthermore, Karimadon lacks resources for their
promotions as well. I thought they didn't have a discount available when I visited their shop. Up
until I noticed the unnoticeable "50%" sale sign on one of the clothing racks.
Opportunities
Karimadon made some improvements to their shop. They only had one fitting room when
I first went to their store, and it was crowded. But now that they have three fitting rooms plus the
store feels large despite its small space. The new designs also improved the atmosphere of the
store by adding appealing lighting and backdrop wallpaper which gave an opportunity for the
store to gain additional customers.
Another opportunity for Karimadon is to utilize its online platforms, as more people are
increasingly choosing to participate online rather than in person because it is easier and more
comfortable. Finally, a lot of well-known people use Karimadon's products, like Julia Baretto and
Gwendolyne Fourniol, Miss World Philippines. The brand may earn more customers as a result
of the influence of celebrities wearing its items.
Threats
Brands that offer fashion and formal wear apparel for women are a threat for Karimadon
since they are an alternative brand of choice for the buyers. Their promos could pose a threat to
Karimadon since buyers might decide it makes more sense to shop there. Another risk is that
some people prefer to rent or borrow formal attire rather than purchasing their own, as formal
attire is typically only required on occasion.
B. OVERALL RETAIL PLAN
Philosophy of Business
According to Josie Go, the secret of Karimadon’s longevity is the quality and style of
their clothes. She stated that their customers know that anytime they come to Karimadon, they
will find something affordable yet quality and stylish that will flatter the body no matter the
shape, since Karimadon provides different body sizes ranging from small to extra large. The
brand also makes sure that all women can depend on Karimadon through making them feel
special, stylish, and beautiful wherever they go.
Form of Ownership
Karimadon is a family corporation that was established in 1980 and currently operating
for over 40 years now, as an exciting and dynamic fashion brand of ready to wear women's
apparel. Karimadon began when Josie Go, the CEO of Karimadon, started to manufacture a few
of her own clothing designs for her own wear since there wasn’t a huge selection of stores to buy
clothes from back then. Fortunately, she began to get good feedback from people. Since then she
started to sell owned designed clothes. Starting from casual wear and office wear, the business
grew and transformed through time.
Some of Karimadon's stores are franchised, and according to Josie Go, they didn't pursue
out their franchisees; rather, people approached them to apply for the franchise. In 2015, the
company also succeeded in opening its first-ever overseas location in Jakarta, Indonesia. It has
now grown to a total of 11 outlets from various Indonesian cities and malls.
Long and Short Run Objectives
The information provided is based on my observations about the three companies, from
three separate days that represents the market share of Karimadon and the other two women's
fashion brands, chosen as its rivals in SM North EDSA. Forme is the brand with the most market
share. They have the most customers entering and exiting the store. Additionally, while
comparing Forme to Karimadon and Kashieca, their location appears to have the most space. In
addition, the company also offers the broadest range of options for women's apparel.
Karimadon, which has the second-largest market share of the three rival companies,
comes in second to Forme. Upon my conversation with the staff, I discovered that the brand
serves more than twenty consumers each day, who certainly purchase their product offerings.
Additionally, the brand has attracted more customers as a result of the recent store
improvements. Having the least market share is Kashieca, it is the reason that people seldom
visit their store even on the weekend. Kashieca also has the least range of options for women’s
apparel.
Long Run Objectives
Our long-term goal is to improve client involvement on social media by using our
Facebook and Instagram accounts and running promotions that will undoubtedly appeal to our
market. In the Philippines as well as the global market, we also hope to become the most popular
brand for women's wear.
Short Run Objectives
For our short-term goals, we intend to consistently offer our target market of women our
luxurious yet affordably priced women's apparel, that will make them feel special and beautiful.
In addition, by executing our provided retail strategies, we aim to gain an additional 15% in sales
by the end of 2023, next year.
Definition and Analysis of Target Customer
Demographics Psychographics
● Gender: Female ● Actualizers, Fulfilleds, Achievers
● Age: 18-49 years old. ● Women who have a love for fashion
● Filipinos and other nationalities ● Tend to be sociable and
● Middle class and Upper class family-focused people
Because Karimadon only sells clothing for women, they have not overstepped their bounds
by entering the men's or children's wear markets. This is because they want to concentrate all of
their efforts on their core product line in order to maintain their competitiveness. Women who
adore fashion and are between the ages of 18 and 40 makeup Karimadon's target demographic.
These are people who are specifically part of the actualizers, fulfilled, and achievers
segmentation. Since the majority of their target customers are looking for formal clothing
because they have events and occasions to attend, they are also possibly people who value their
families and their social lives. In addition, Karimadon targets Filipinos as well as foreigners
since the brand operates internationally.
Competitive Analysis – 4Ps
Karimadon Forme Kashieca
PRODUCT
● Dresses ● Dresses ● Dresses
● Gowns ● Pants ● Tops
● Tops ● Skirts ● Pants
● Pants ● Accessories ● Skirts
● Skirts ● Tops ● Fragrances
● Accessories ● Jackets
● Shorts
● Footwears
● Fragrances
PRICE
● 1,899 - 3,999 php ● 1,298 - 1,998 php ● 928 - 2,398 php
● 2,999 - 9,999 ● 1,098 - 1,498 ● 218 - 1,198
● 1,299 - 1,599 ● 1,098 - 1,598 ● 898 - 1,498
● 1,599 - 1,899 ● 98 - 998 ● 928 - 1,298
● 1,700 ● 398 - 1,098 ● 88 - 298
● 99 - 599 ● 998 - 1,398
● 698 - 1,198
● 498 - 648
● 128-498
PROMOTION
● Website: ● Website: ● Facebook:
karimadonfashion.co formeclothing.com @kashiecaofficial
m ● Facebook: @forme ● Instagram: kashiecaph
● Facebook: ● Instagram: forme
@karimadon.fashion
● Instagram:
karimadonph
PLACE
● Located at Second ● Located at First Level, ● Located at Second
Level, City Center, City Center, SM Level, City Center,
SM North EDSA North EDSA SM North EDSA
● Karimadon has 31 ● Forme has 108 retail ● Kashieca has 18 retail
retail stores in the stores in the stores in the
Philippines Philippines Philippines
Retail Strategy
● Queens Bundles
The proposed promotion will be named “Queens Bundles”. The target customers of this
promotion will be those women who have an entourage needs, particularly those groups of
women who will attend a wedding event and are selected to be bridesmaids. In the Queens
Bundles, customers can choose 4 or 5 same pieces from selected dresses and gowns. Those who
will avail a bundle of 4 will be given a 15% discount, while for those who will avail a bundle of
5 same pieces will be given a 20% discount on the final price of their purchase.
According to the Philippine Statistics Authority, during the years 2019 and 2020, most
marriages occurred in the months of February and December. That is why this promotion will
run for January and November, the months before most marriages occur. Since most event goers,
buy their clothing needs days before the event takes place.
Dresses Selection
HOPE MARITA
Original price per piece: P2,999 Original price per piece: P2,999
Bundle (4): Save P1,799 Bundle (4): Save P1,799
Bundle (5): Save P2,999 Bundle (5): Save P2,999
HESTIA DRESS MOON
Original price per piece: P2,599 Original price per piece: P3,499
Bundle (4): Save P1,599 Bundle (4): Save P2,099
Bundle (5): Save P2,599 Bundle (5): Save P2,999
Gowns Selection
FAITH AUDREY
Original price per piece: P4,999 Original price per piece: P4,999
Bundle (4): Save P2,999 Bundle (4): Save P2,999
Bundle (5): Save P4,999 Bundle (5): Save P4,999
CARNATION CELESTE
Original price per piece: P4,999 Original price per piece: P4,999
Bundle (4): Save P2,999 Bundle (4): Save P2,999
Bundle (5): Save P4,999 Bundle (5): Save P4,999
MARGA LORIE
Original price per piece: P4,799 Original price per piece: P4,999
Bundle (4): Save P2,879 Bundle (4): Save P2,999
Bundle (5): Save P4,799 Bundle (5): Save P4,999
● Digital Advertising
Use of Facebook and Instagram will be the medium for the advertisement of the Queens
Bundles, since it is the most used platform nowadays. The advertisement will be a cost per click
basis that targets 10,000 users on Facebook and Instagram.
Facebook Advertisement
Instagram Advertisement
● Promotional Display
Promotion Poster
Promotion display in front of the store
Promotion display at entrance of Second Level, City Center, SM North
● Influencer Partnership
Partnering with the right influencer to help Karimadon to boost their sales as well as their
social media platforms. Influencers have their own personal branding and followers that trust
their expertise which the brand can take advantage of.
● Vouchers
Vouchers will be given to customers in the physical store who purchases a certain
amount. The vouchers given can be used for online purchases only and will last until December
30 of 2024. The objective of this strategy is to gain more customers buying in the physical store
as well as to push Karimadon’s customers into purchasing through their online store. These
vouchers are also a way of giving back to Karimadon’s loyal customers.
Customers who spend a minimum of 1,000 pesos in the physical store will be given a
Free standard shipping to their minimum purchase of 1,000 pesos in the online store. For 4,000
minimum purchases, they will be given a 20% discount on selected items. And for the minimum
of 8,000 purchases, customers will be given a 50% discount on selected items in the online store.
C. ADMINISTRATIVE AND MANAGEMENT PLAN
Organizational Structure & Brief Description of Jobs
OPERATION MANAGER
DESIGNER
STORE MANAGER
STAFF
● Operation Manager
The operation manager is responsible for the overall planning, managing, and
coordinating all operations related to the distribution of the manufactured clothes in NCR and
other provinces where Karimadon stores are situated.
● Designer
The designers of Karimadon are responsible for dress, accessories, gown, and casual
wear designs who work on the many collections and product categories. They aid in predicting
fashion, color, and fabric trends and create the graphics for high fashion, ready-to-wear, and
mass production. They are also in charge of bringing the clients' personalized clothing to life.
● Store Manager
The responsibility includes managing the store branch and creating a pleasant work
environment.
● Staff
The staff are responsible for selling the products, listening to customer complaints
and resolving any product issues, as well as assessing the needs of their customers.
Inventory Management
Karimadon imports the materials needed in manufacturing their own products. According
to Josie Go, she stated that sourcing from local suppliers gives them limited selection, while
sourcing abroad offers them many styles and designs to choose from. In addition, according to
the staff in the store, they have a database system to track the numbers and availability of their
products. They also have a weekly delivery of stocks from their factory in San Juan.
Daily Operations
Karimadon is open from 10:00 AM to 9:00 PM at SM North EDSA. Customers looking
for branded women's clothing that is fashionable and fairly priced are catered to by the business.
Additionally, their consumers can place online orders through both their official website and
social media pages. The shop also offers personalized apparel, where customers can pick their
own design from a booklet. After that, the staff takes precise measurements of the client. The
crew then provides the information to their designer.
Managing Risk
● Operational Risk
Operational risk is the likelihood that a company's internal systems, procedures, and
personnel will break down, causing business operations to fail. After speaking with a few
employees, I discovered that the store implements operational risk management by hiring the
appropriate personnel. Those who are morally upright and presentable to their intended buyers.
The store also inspects the products to ensure that they are in good shape. When they discover a
harmed product, they notify the factory right away. To keep their clothing in good shape, the
business even has a steam iron.
● Strategic Risk
The external factors that could keep the business from achieving its goals are known as
strategic risks. Since Karimadon has been operating on the market for more than 40 years, it has
developed skills in controlling strategic risks. Their main tactic for doing this is to always offer
their consumers timeless apparel styles in an effort to set the market's trends.
● Technological Risk
Technology risk, often known as information technology risk, is a category of business
risk that is defined as the possibility that any technological failure may cause a business to fail.
Along with the information that their clients give them, Karimadon ensures that both sets of
information are secure. Framing, mirroring, scraping, or data mining of the company's website or
any of its content is not permitted in any way.
D. FINANCIAL PLAN
Investment For The First Year and Success
PROPOSED STRATEGY QUANTITY ESTIMATED COST
Queens Bundles Advertisement and Promotional Display
Facebook Advertisement 5,000 clicks 90,000 php
(Cost Per Click)
Instagram Advertisement 5,000 clicks 90,000
(Cost Per Click)
Poster 2 800
Poster Stand 2 1,200
Influencer Partnership 1 50,000
Estimated Total Cost 232,000 php
PROPOSED STRATEGY QUANTITY ESTIMATED COST
Voucher
Free Shipping Voucher 1,000 2,000 php
(3.5” x 2”)
20% Voucher 500 1,125
(3.5” x 2”)
50% Voucher 300 750
(3.5” x 2”)
Estimated Total Cost 3,875 php
Profit Planning
● January
DRESS PRICE ESTIMATED ESTIMATED
(Discount Applied) UNITS SOLD SALES
January
Hestia Dress Bundle (4): 8,837 php 3 26,511 php
Bundle (5): 10,396 2 20,792
Hope Bundle (4): 10,197 2 20,394
Bundle (5): 11,996 1 11,996
Marita Bundle (4): 10,197 2 20,394
Bundle (5): 11,996 1 11,996
Moon Bundle (4): 11,897 2 23,794
Bundle (5): 13,996 1 13,996
Total 14 149,873 php
GOWN PRICE ESTIMATED ESTIMATED
(Discount Applied) UNITS SOLD SALES
January
Marga Bundle (4): 16,317 php 2 32,634 php
Bundle (5): 19,196 1 19,196
Celeste Bundle (4): 16,997 1 16,997
Bundle (5): 19,996 1 19,996
Carnation Bundle (4): 16,997 1 16,997
Bundle (5): 19,996 1 19,996
Audrey Bundle (4): 16,997 1 16,997
Bundle (5): 19,996 1 19,996
Lorie Bundle (4): 16,997 1 16,997
Bundle (5): 19,996 1 19,996
Faith Bundle (4): 16,997 1 16,997
Bundle (5): 19,996 1 19,996
Total 11 199,802 php
● November
DRESS PRICE ESTIMATED ESTIMATED
(Discount Applied) UNITS SOLD SALES
November
Hestia Dress Bundle (4): 8,837 php 4 35,348 php
Bundle (5): 10,396 3 31,188
Hope Bundle (4): 10,197 3 30,591
Bundle (5): 11,996 2 23,992
Marita Bundle (4): 10,197 3 30,591
Bundle (5): 11,996 2 23,992
Moon Bundle (4): 11,897 3 35,691
Bundle (5): 13,996 2 27,992
Total 22 239,385 php
Break Even Analysis
PERIOD ESTIMATED VARIABLE COST PROPOSED TOTAL
YEARLY SALES AND FIXED STRATEGIES PROFIT
COST EXPENSES
YEARLY 910,840 php 313,758 235,875 361,207 php
FIXED COST SALES PRICE PER VARIABLE COST PER BREAK EVEN
UNIT UNIT POINT
299,633 14,012 php 4,827 32
E. RECOMMENDATION
● Reward Loyal Customers
In order to keep their current clients and to thank them for their continued support of the
business, Karimadon should give rewards to their devoted clients. Given that attracting loyal
clients is more difficult than attracting new ones to your store, the brand should show them
appreciation.
● Post Relevant Content Regularly
Consistently posting fascinating and engaging information is the key to success on social
media. This will not only help to give your company a trustworthy appearance, but it will also
demonstrate that you care about engaging with your audience and that you have updated
information to share.
● Proper Placement of Promotions
Promotions such as sales and discounts should be placed at the store entrance, beside the
doors. When people see it, they will automatically think that it is a big steal from the store to
offer such promotions. This will help the store to attract new customers as well as to gain
additional sales.
REFERENCES
https://theexplorerschannel.com/karimadon-sm-cdo-downtown-premier/
https://josiahgo.com/qa-with-karimadon-president-josie-go-on-exploiting-business-opportunities/
https://www.pressreader.com/philippines/the-philippine-star/20171216/282239485978036
https://www.studymode.com/essays/Karimadon-Operations-Audit-1331345.html
https://www.karimadonfashion.com/about/
https://kingscity.com.ph/collections/karimadon
http://www.applesanddumplings.com/2014/03/its-all-about-karimadon.html
https://metro.style/fashion/inspiration/luxury-designer-rosenthal-tee-unveils-a-different/10905
https://www.statista.com/outlook/cmo/apparel/philippines
https://philippinebeat.com/2014/03/an-afternoon-me-time-with-karimadon-and-the-somoms/
https://www.philembassy.org.au/latest/news/filipino-designers-shine-in-melbourne-fashion-show
https://www.shopify.com/blog/facebook-ads-cost
https://www.pressreader.com/philippines/manila-bulletin/20170712/282029032267668
https://starcentralmagazine.com/featured-post/2019/08/25/meet-the-10-incredible-designers-who
-will-be-showcasing-at-the-sassy-co-fashion-extravaganza/
https://alphabelles.wixsite.com/site/single-post/2017/04/01/vancouver-fashion-week-karimadons
-serene-siren-collection-my-4-favorite-pieces
https://www.nibusinessinfo.co.uk/content/operational-risk
https://www.nibusinessinfo.co.uk/content/strategic-risk
https://www.karimadonfashion.com/terms-use/
