Ml Strategy

ML was founded by Malka family in 1991. The chain includes 85 stores all over Israel and 15 stores abroad ML has gained a good IMAGE and a NAME in the initial niche he has chosen in the plus size women and in the maternity fashion. Confronted to aggressive competition in this niche, ML had to develop a new business strategy.

1 ML business Abell model

ML has to continually implement new business actions in order to strengthen its advantage in front of the new entrants. It is maintaining its strategy of niches in developing a business for ” BIG MEN”, and modest clothes for religious and arab women. In the same time, they choose to be present in the segment of young women with sizes 42 - 46.

The new axis for this strategy, directed by the customers is shown on the Abell graph below.

Who:

Ð'§ Plus size women

Ð'§ big men

Ð'§ 42-46 young women

Ð'§ religious and Arab women.

What:

Ð'§ Confortable and flattering clothes

Ð'§ fashionnable and loose fit

Ð'§ natural and fine fabrics

Ð'§ low cost.

How:

Ð'§ opening numerous shops in strategic areas

Ð'§ using advertisment and mass media

Ð'§ investing in design of the clothes.

Tree dimensional business definition by Abell

2 ML STRATEGY

2. 1 MAIN FUNCTIONNAL ACTIONS APPLIED

Services to the customers:

The services to the customers have been improved in few fields :

ML uses different medias (TV, internet ) with attractive messages to present its collections. The launch of FIDELITY CARDS which give informations and reductions on sales, allows ML to stay in constant contact with its customers who are encouraged to buy in the chain. The success of this policy can be measured by the number cards already acquired(100000).

The internet SITE , well designed also allows the direct ordering of clothes with support many languages including arab and russian. It is important to note that is rare chain of shops in this buisness that permits online ordering.

Effectiveness:

ML is improving the PROXIMITY with the customers in opening new shops in malls, and in busy areas where they propose in the same places dresses and accessories.

In the business of clothing ,the importance of ADVERTISEMENT is of prime importance. In using all the mass media (TV, internet ) ,the company is succeeding in promoting their clothes and maintaining a good image of their products.

They also begun the manufacturing in China in order to lower the COSTS. This allows the company to conduct a better cost leadership strategy in front of the new competitors.

Creativity:

ML has been always the pioneer for the overwieght an obese population.

The most important new action has been directed towards “BIG MEN “.With the good reputation they have gained with the plus size women and pregnant women, ML is implementing the same concept with men. In fact, in Israel with 40% of the population overweight and 23 % really obese, men have no dedicated chain of shops for them.For this new niche ML has already opened 25 shops where one can buy suits , different clothes but also accessories like belts ,shoes , ties…. And even wine !!

ML has also taken a dramatic step in addressing the new clientele of younger women. They are now opening new shops and propose sizes from 42 . This segment is interesting but ”overcrowded”