Internship Report at PT.lennor_final

Internship Report at PT. Lennor

New Comer in Fashion Retail Industry

Internship Project29 March – 16 April 2010

at PT. Lennor, Jakarta

Sista Armita Sari

Internship Report at PT. Lennor of 36New Comer in Fashion Retail Industry

All the content of illustration, company logo and information about PT. Lennor in this report has been officially permitted by

PT. Lennor and is solely used by the author for academic purpose.

For permission to additional use, please write to PT. Lennor, Crown Palace Unit D19, Jl. Dr. Soepomo No. 231, Jakarta

Selatan, Indonesia.

Republication or reproduction of any illustration, company logo and information by any party whether it in a book or in any

other resource, for any commercial use, is strictly prohibited.

Sista Armita Sari, One Year Combination Program 2009/2010, ESMOD Jakarta


Foreword

Retail fashion is one of the most challenging and fast pace industries. To develop

and maintain the industry it demands integrity and synergy. Fashion wise, a

strong character and uniqueness are the core values to establish a remarkable

brand and to compete in the vivacious industry as one of the biggest company of

retail fashion in Indonesia.

PT. Lennor – developing retail fashion that still has many opportunities to dig out

and to develop. LENNOR brand is mainly offers Indonesian traditional woven cloth

in casual and executive style while wAw (What Are You Wearing) focuses on

knitted fabric for casual style.

The internship that I have undertaken in PT. Lennor was posted in the

Merchandising team and supports as the Fashion Designer for wAw (What Are

You Wearing) brand, which on the following this report it will be referred as wAw.

The assignment that I have been involved was designing the casual clothing line

and preparing the paper pattern of the designs. Nevertheless, in this internship

report I took the opportunity to study the big picture of PT. Lennor generally and

wAw specifically. Consequently, this internship report mainly examines the

potential and possible obstacle in PT. Lennor as the developing retail fashion

industry and the established brand of the respective company; LENNOR and

wAw.

Research of the internship report was conducted by using qualitative method;

analysis by internet research, direct surveys and interviews. The analysis was

concentrated merely in direct visit to several store outlet, Bazaar venue, and

short interview with the General Manager and the Lead Designer of wAw.

Additionally, the research about the product and the target market generally was

performed by personal research through store visit and stock inventory.

By and large, the objective of this internship report is to study the developing of

retail fashion industry and the brand image in the broad picture by learning on

the surface of daily business operation in PT. Lennor. Therefore, this internship

report will be focus on the organization as a whole and emphasize on the target



market. In order to summarized the internship report, the result of the research

is compiled into several aspects which consist of SWOT (Strength, Weaknesses,

Opportunities and Threats) Analysis of PT. Lennor whereas LENNOR and wAw as

the focal study. Since the analysis will be concluded based on the personal

qualitative analysis, as a result all the content may not be as precise as the

objective and target of PT. Lennor.

Due to the limited time and resources, this internship report may have several

shortages on analysis and result. In this manner, all the valuable critics and

comments are welcome in order to enhance the knowledge and information of

this internship report. Last but not least, hopefully this report will make a great

benefit for all the students and the Company where the Internship was performed

as well as my study and career in the future.



TABLE OF CONTENT

FOREWORD 3

TABLE OF CONTENT 5

GENERAL BACKGROUND 6

LENNOR 9

Product Specification 10

Size Specification 12

Material of Fabric 12

Care Instruction 12

Price References 13

Sales Promotion Event 14

wAw (What Are you Wearing) 15

Product Specification 17

Material of Fabric 18

Care Instruction 18

Price References 19

Sales Promotion Event 19

RESEARCH ANALYSIS 20

SWOT Analysis for PT. Lennor 22

SUMMARY 25

APPENDIX 26



GENERAL BACKGROUND

LENNOR is one established brand which aspired by Batik Semar and Lenny

Agustin to manifest their vision to revamp the Indonesian heritage of traditional

cloth. This aspiration is developed in the establishment of PT. Lennor. PT. Lennor

is established on 2009; it is the joint effort between Batik Semar, Lenny Agustin

as the Chief of Fashion Designer and PT. Lennor as the management. Generally,

Lennor is showing the beauty of Indonesian traditional culture by the ethnic

character and the contemporary influence through fashion and lifestyle. On the

other hand, PT. Lennor is also developing the casual clothing line by producing

casual wear with their infamous brand; wAw (What Are You Wearing).

The Vision of PT. Lennor is “To be a new ways and a leader in fashion retail

industry with an ethnic and casual style”, and the Mission is “to introduce the

traditional Indonesian culture with its ethnic character as a result it can be known

worldwide through friendly cooperation among the organization”.

By having two different styles includes ethnic traditional style and casual style.

PT. Lennor determines to build the uniqueness and character of playful designs

on each of them. This is mainly the strong image of PT. Lennor, where the fun

and friendly atmosphere are exposed among the organization itself.

As the collaboration of traditional cloth and contemporary designs, production of

traditional cloth such as Batik and Lurik is primarily handled by Batik Semar.

Nevertheless, the design of the textile is modernized to fits the young and

dynamic lifestyle. This to show that the product of PT. Lennor have their own

distinctive character yet still embrace the authentic ethnicity of Indonesia.



The establishment of PT. Lennor has been a tremendous success in several main

cities in Indonesia includes ten flagship stores; eight stores for wAw and two for

LENNOR. Currently they are opening one flagship store for wAw in Solo. The line

is mainly sold in medium upscale shopping centers in Jakarta and planning to

expand to other main cities in Indonesia like Surabaya or Bali and may not leave

out to overseas opportunity.

Organization Chart of PT. Lennor

The structure of organization in this report is merely highlighting the

Merchandising division as my job placement. Broadly, the structure organization

of PT. Lennor can be broken down but not limited into the following functions:

Human Resources

Accounting & Finance

Generally handles daily business operation relates to the respective department

within internal office operation.

Merchandising

Generally handles Order Management includes product development, production

process and pricing strategy

Business Development : Marketing & Promotion



Generally handles all the Marketing and Promotion event includes Internal and

External promotion such as public relation and event, Marketing Strategy for

each brand, collaborate with third parties, event calendar.

Operation

Generally handles daily business operation within Sales & Distribution, Stock

Inventory, and Store Display

JAKARTA OFFICE

Crown Palace Unit D-19Jl. Prof. Dr. Soepomo No. 231Tebet, Jakarta Selatan - 12870, IndonesiaTel +62 21 8370 4541Fax. +62 21 8370 4542

STORE OUTLET

LENNOR

- Central Park, UG FloorJakarta Barat

- Plaza Indonesia, 2nd FloorJakarta Pusat

wAw

- Ciputra Mall, 3rd FloorJl. Let.Jend. S.Parman, Jakarta Barat

- Central Park, 3rd Floor Jl. Let.Jend. S. Parman, Jakarta Barat

- Blok M Plaza, 4th FloorBulungan, Jakarta Selatan

- Kelapa Gading Mall, 2nd FloorKelapa Gading Permai, Jakarta Utara

- Summarecon Mall Serpong, 1st FloorBoulevard Gading Serpong, Tangerang

- Botani Square, 1st FloorJl. Raya Pajajaran, Bogor

- Plaza Ambarukmo, 2nd FloorLaksda Adiscipto, Jogjakarta

- Recent Opening at Solo Square, Solo – Central Java



LENNOR

LENNOR means “Summer” and perfectly describes Lenny Agustin’s passion in

creating and innovating playful, young and dynamic piece by combining modern

and traditional culture with a touch of ethnic elements.

LENNOR range collections are categorized in Ready to Wear for Men and Women

apparels and non-apparels. The brand has two basic product of Ethnic and

Executive. The Ethnic products mainly focus on the casual design for casual style

or semi formal attire. Moreover, the Executive products are more directed but not

limited to for office attire.

LENNOR positioned the brand in the middle-up level market and penetrated into

Urban Professionals by having the concept of original, ethnic and casual and also

producing limited products. The product of LENNOR ranges at medium to high

level price from IDR 350.000 up to IDR 1 million above.

With average store size by 60 - 80 square metres, LENNOR has opened two

flagship stores at Plaza Indonesia and Central Park in Jakarta and planning for

expansion in other main cities in Indonesia in the near future.



Store Concept (Courtesy of PT. Lennor)

Product SpecificationThe look of light yellow and black outlets of “LENNOR store” offer fashion items

like sleeveless, shirt, skirt, pants, and dresses. And also offer limited edition of

accessories like bags, necklace, bracelet, and scarf.

Specifically, LENNOR product categorized in several departments can be broken

down as following:



LENNOR Style (Courtesy of PT. LENNOR)

Apparel Non Apparel

Apparel Ethnic

Women

Top

Sleeveless (Tank Top)

Shirt (Blouse)

Outerwear/Jacket (Bolero)

Dress

Short dress

Long dress

Bottom

Pants

Skirt

Women

Bags

Handbag

Clutch

Pouch

Accessories

Necklace

Bracelet

Brooch

Shawl

Men

Top

Shirt

Outerwear/Jacket

Bottom

Pants

Apparel Executive

Women

Top

Shirt (Blouse




Dress

Short dress

Bottom

Pants

Skirt

Men

Top

Shirt

Size SpecificationThe size variant for all product ranges from Small, Medium, Large to Extra Large.

The measurement of size specification for each and every style is different

depends on the size.

Material of FabricLENNOR products are mainly using woven cloth as outlined below :

- Batik/Jarik (Cotton)

- Lurik (Cotton)

- Canvas

- Denim

- Drill

- Single Jersey Cotton Spandex

98% Cotton, 2% Spandex : Denim Stretch

92% Cotton, 8% Spandex : Tank Top Single Jersey Spandex

- Cotton Poplin

- Ice Wash

Care Instruction100% Cotton, 98% Cotton, 2% Spandex and 92% Cotton, 8% Spandex

Do Not Bleach Medium Ironing



Do Not Use Washing Machine Hand Wash and

Rinse

Best with Batik Soap

(Lerak)

100% Polyester

Do Not Bleach Cool Ironing

Do Not Use Washing Machine Handwash and

Rinse

Best with Batik Soap

(Lerak)

Price ReferencesApparel

Apparel Ethnic

Women

Top

Sleeveless (Tank Top)

Shirt (Blouse)


Dress

Short dress

Long dress

Bottom

Pants

Skirt

: IDR 140.000 –

590.000

: IDR 300.000 –

750.000

: IDR 320.000 –

550.000

: IDR 450.000 –

700.000

: IDR 590.000 –

900.000

: IDR 370.000 –

500.000

: IDR 330.000 – 590.000



Men

Top

Shirt

Outerwear/Jacket

Bottom

Pants

: IDR 350.000 –

750.000

: IDR 700.000 –

800.000

: IDR 390.000 – 490.000

Apparel Executive

Women

Top

Shirt (Blouse


Dress

Short dress

Bottom

Pants

Skirt

: IDR 350.000 –

550.000

: IDR 430.000 –

490.000

: IDR 490.000 –

670.000

: IDR 300.000 –

500.000

: IDR 260.000 –

380.000

Men

Top

Shirt: IDR 350.000 –

500.000

Non Apparel Women

Bags

Handbag, Clutch and Pouch

Accessories

Necklace

Bracelet

Brooch

: IDR 80.000 –

800.000

: IDR 160.000 –

375.000

: IDR 80.000 –



Shawl

300.000

: IDR 20.000 –

300.000

: IDR 250.000 –

350.000

Sales Promotion EventDuring this season, LENNOR offers free membership by minimum purchase of IDR

1 million, and all members get 10% discount every purchase for one year.

wAw (What Are you Wearing)

wAw range collections are simply classified in Ready to Wear for Men and Women

apparels and non apparels. wAw positioned the market in the casual clothing line

for middle level market and targeted into Young and Urban Professionals. Basic



and casual concept is segmented in “unisex” products. The brand aims for

women and men with casual lifestyle yet fashionable and always wants to look

young, dynamic yet stays simple.

In the average store size from 40 – 80 square meters, wAw store concept of

contemporary, distinctive and lively wAw is highlighted in the nuance of red,

white and black with the touch of simplicity yet edgy interior design.

At first impression, wAw main concept is basically simple and fun. Within its

simplicity, wAw offers variant bright colors of T-shirt and Polo Shirt to express the

fun and playful impression.

As detail outlined, the target market is broken down as following:

Market segmentation - Demographic

- Male and Female

- Teenagers and Adults (17 years old - above)

- All family size

- All occupation (Urban Professional)

- Income range 1000K and above

Market segmentation – Geographic

- Region : main cities in Indonesia

Market segmentation – Psychosocial

- low middle class

- casual lifestyle

wAw has opened several flagship stores in the middle up class shopping centers

around Jakarta, Serpong, Bogor, Jogjakarta, Solo and planning to be expanded in

other main cities in Indonesia.



Store Concept of wAw (Courtesy of PT. Lennor)



Product SpecificationThe product of wAw categorized in Basic and Printed within size specification

from small, medium, large and extra large. Generally the products are outlined as

following:

Apparel

Women and Men

- T-shirt

- Polo Shirt

- Printed T-shirt

- Outerwear (jacket & sweater)

Non Apparel

Women and Men and/or Unisex

- Bags

- Wallets

- Accessories

wAw Hats and Caps (Courtesy of PT. Lennor)



wAw Accessories(Courtesy of PT. Lennor)

wAw Bowling Bag (Courtesy of PT. Lennor)

Material of FabricWAW clothes are mainly using knitted cloth such as follow:

- Cotton Jersey

- Lacost

- Baby Terry

- Cotton Polyester

Care Instruction

Machine Wash Warm

Non Chlorine Bleach when Needed



Tumble Dry

Medium Iron

Price References

Apparel

Women

Polo shirt : IDR 130.000 – 190.000

T-shirt (Basic & Printed) : IDR 80.000 – 150.000

Outerwear (Blazer, Jacket, Cropped

Jacket): IDR 230.000 – 320.000

Men

Polo shirt : IDR 100.000 – 150.000

T-shirt (basic & Printed) : IDR 90.000 – 170.000

Non Apparel (Men, Women & Unisex)

Bags, Purse and Pouch

Coin Purse : IDR 30.000 Ladies Pouch : IDR 220.000

Sling Bags Unisex (shoulder bags) : IDR 90.000 – 300.000

Handbag (Net Tote Bags) : IDR 40.000

Tote Bags : IDR 190.000 – 250.000

Backpack : IDR 250.000 Bowling Bag : IDR 280.000

Accessories

Belt : IDR 100.000 – 150.000

Wallet : IDR 80.000 - 190.000



Hats : IDR 160.000 Caps : IDR 120.000

Sales Promotion EventDuring this season, the event calendar for wAw is conducted through up to 70%

Discount Bazaar, Weekend Surprises and Free Mug for every purchase of Couple

Series T-shirt or Polo Shirt.

RESEARCH ANALYSIS

The study of SWOT Analysis is often used by students and companies to identify

critical areas that need some improvement in order to achieve the specified

objectives. Literally explained, SWOT analysis is a strategic planning method

used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved

in a project or in a business venture. It involves specifying the objective of the

business venture or project and identifying the internal and external factors that

are favorable and unfavorable to achieve that objective. The technique is

credited to Albert Humphrey, who led a convention at Stanford University in the

1960s and 1970s using data from Fortune 500 companies [1].

The following diagram shows how a SWOT analysis fits into a strategic situation

analysis2.

Situation Analysis / \

Internal Analysis External Analysis/ \ / \

Strengths Weaknesses Opportunities Threats|

SWOT Profile

1 Retrieved from http://en.wikipedia.org/wiki/SWOT_analysis2 Retrieved from http://www.netmba.com/strategy/swot/



Internal Analysis

The internal analysis is described as a comprehensive evaluation of the internal

environment's potential strengths and weaknesses. Factors should be evaluated

across the organization in areas such as:

Company culture

Company image

Organizational structure

Key staff

Access to natural resources

Position on the experience curve

Operational efficiency

Operational capacity

Brand awareness

Market share

Financial resources

Exclusive contracts

Patents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of

strengths and weaknesses.

External Analysis

An opportunity is the chance to introduce a new product or service that can

generate superior returns. Opportunities can arise when changes occur in the

external environment. Many of these changes can be perceived as threats to the

market position of existing products and may necessitate a change in product

specifications or the development of new products in order for the firm to remain

competitive. Changes in the external environment may be related to:

Customers

Competitors

Market trends

Suppliers



Partners

Social changes

New technology

Economic environment

Political and regulatory environment

The SWOT analysis summarizes the external environmental factors as a list of

opportunities and threats.

The SWOT Profile is generated based on both analyses; internal and external

consequently creates the starting point to set up objective, strategy and

implementation. The SWOT Profile applies interrelated, between each of the

element. For example, the strengths are generated as leverage to achieve the

opportunities and to encounter the threats, while the weaknesses identify the

critical issues should be overcome in order to obtain the opportunities.

Research analysis on PT. Lennor to be focused on the SWOT (Strengths,

Weaknesses, Opportunity and Threats) analysis based on the point of study by

using direct and indirect methods includes Internet research and direct visit to

store outlets of wAw; Blok M Plaza and Central Park, as well as bazaar venue at

Blok M Plaza, Jakarta. Additionally, direct analysis was conducted by direct visit to

LENNOR outlet at Plaza Indonesia, Jakarta.

The research objective is to identify the strengths and weaknesses of the

company in order to enhance the sales promotion and improve product

development which eventually achieve the opportunities and reduce the threats

effectively in PT. Lennor.

Based on the information given previously, the sales promotion for both wAw and

LENNOR respectively is applying fashion show, discount for member, discount

bazaar as well as free merchandise for particular purchase.

SWOT Analysis for PT. Lennor

Internal Analysis

Strengths



Company and Brand Image

- Good reputation in the marketplace for LENNOR & wAw

- Solid brand image of the Designer and Batik Product

- Modern concept of young and dynamic style for both brand

Price, Product, Promotion and Positioning

- Competitive price for the market

- Strong product icon for casual and youthful style

- Effective market segmentation and sales promotion

- Up to date trend and trendsetter

Weaknesses

Market Penetration

- New comer in the marketplace

- The infusion of Ethnic and modern concept of Batik/traditional

cloth hardly penetrate the conservative market

Product Development

- Product development and production still in the growing phase

- Limited product category in wAw store

- Limited variant for T-Shirt and Polo Shirt (wAw product)

- Limited material of fabric for casual style

External Analysis

Opportunities

Sales Promotion

- Sales and Promotion event at the Shopping Centers such as

Seasonal Sale, Gift Voucher, Gift Card, Discount for preferred

Credit Card

- Boost discount rate and free merchandise

Advertisement and Publicity

- Advertisement or Cover in the newspaper, magazines, radio

and television



- Advertisement at the Shopping Centers such as Sign Board

- Official Website, Fan book in Facebook

- Publicity by giving sponsorship, fashion show, workshop in

Fashion Festival or School Event, etc.

Merchandising

- Product & Design Development for wAw ; bottoms, dress,

shoes and accessories

- Merchandising Specification; additional material of fabric and

details/creative fabric, broaden product line and size.

- Eco friendly products

Customer Service

- Enhancement customer service

- After sales service

Threats

Competitor

- Modernized/westernized market is more prefer to International

brand

- Competitor with lower price and more discount

- Competitor with more variant of design and faster collection

cycle

Location

- Store location is out of sight by the Shopping Center’s visitors

Product Quality

- Defective quality of product from the suppliers



SUMMARY

PT. Lennor established on 2009 by the collaboration of infamous Batik producer

and Fashion Designer. PT. Lennor have built distinctive brand of Casual Ethnic as

well as Casual Basic and Print in Ready-to-Wear clothing line. Both brands have

their own strong characteristics yet one solid brand image of youthful and

dynamic style while stays in simplicity. Their vision and mission aims to conserve

the Indonesian heritage of culture and traditional cloth. Morover, their strong

concept of youthful is utterly showed within the organization itself, this creates

the playful, lively and friendly working environment. As a new comer, PT. Lennor

has been showing their successful business by opening their stores in several

main cities in Indonesia and maintaining their strategy by improving the strong

focal point before stepping into the bigger area.

The research of SWOT analysis in PT. Lennor is emphasized by several important

profiles. As a result of internal evaluation of PT. Lennor, the strengths that should



be maintained and still have some room for improvement are focused on the

marketing mix includes Price, Product, Promotion and Positioning. Moreover,

weaknesses that could take into account in related to the market penetration and

the limitation of product variant can be improved in the product design and

quality. Alternatively, external analysis comprises of opportunities that can be

elevated are Sales Promotion, Advertisement & Publicity, Merchandising &

Product Development, as well as Customer Service while potential threats that

should be minimized are more in the competitor aspect.

Fashion retail industry is a fast pace business which full of dynamic flow and vast

liquid assets. To be successful in this industry, it requires strong focal concept

and solid synergy between the internal and external shareholders as well as

within the organization itself. The greatest challenge of Fashion retail industry is

to build the uniqueness and the soulful character in its collection yet can be well

accepted by the market majority. Overall, the strong dependable shareholders,

effective market research and product and design development are the key

foundations to build the excellent brand image and high-quality product.

APPENDIX



wAw at Ciputra Mall, Jakarta (Courtesy of PT. Lennor)

wAw at Central Park, Jakarta (Courtesy of PT. Lennor)



wAw at Blok M Plaza, Jakarta (Courtesy of PT. Lennor)



Store Display at Blok M Plaza, Jakarta (Courtesy of PT. Lennor)



wAw Bags and Accessories (Courtesy of PT. Lennor)



wAw Men’s Tops (Courtesy of PT. Lennor)



wAw Women’s Tops (Courtesy of PT. Lennor)


Internship Report at PT.lennor_final

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