Costing in pepe denim case study

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Pepe Jeans London is a denim fashion brand that began as a small market stall on Portobello Road and became one of the fastest growing jeanswear labels in Europe, maintaining a global presence in more than 80 countries around the world. Pepe Jeans London was looking to promote the launch of its new Powerflex Jeans, whilst also reaching a wider audience and increasing the number of on-brand user-generated assets. In collaboration with Olapic, the campaign encouraged consumers to do the same and share their videos using the hashtag GetItOnChallenge. Upon submitting the videos of their completed challenges, consumers would receive a free pair of the jeans in return. The Challenge Pepe Jeans London was looking to promote the launch of its new Powerflex Jeans, whilst also reaching a wider audience and increasing the number of on-brand user-generated assets. This is why it was important to promote our UGC video gallery across all channels to inspire others to take the challenge once they saw that so many others, including influencers they like and trust, were already doing it. The Olapic team was very supportive in the planning and development of this campaign, helping us aggregate the enormous volume of content shared socially and making it easy for us to showcase the video gallery on our challenge website.

Pepe Jeans Case Study

Introduction: Kesar Bajaj Bajaj , chairman of Pepe Denim, a manufacturer and retailer of jeans in India, was facing tremendous pressure to improve the financial position of the company and its market valuation. Bajaj and his younger brother Dinkar had floated Pepe Denim as a private limited company in Ahmedabad, Gujarat, in In , the brothers decided to convert the company into a public limited company. Pepe Denim began manufacturing operations with just one factory in Ahmedabad district but the brothers put in a lot of hard work and took the company to a level where in , it had stores spread throughout the country and a workforce of 20, It also used to export its jeans to China, Brazil, and Nepal.
Abstract: This case discusses a business situation in which the profits of Pepe Denim, a jeans manufacturer in India, declined despite consistency in the sales of jeans, because of competition from other similar products. Competition led to a reduction in the selling price and rise in cost, resulted in decreasing profits. In such a situation, the company decided to add two new product lines - Denim Handbags and Denim Skirts - which would require the same type of raw material and the same labor. The case study helps us understand and analyze the decision to add two new products lines on the basis of a comparison of cost and profit before and after the introduction of new products. With this, the case study gives enough scope to derive different cost concepts like full cost, direct and indirect cost, elements of product cost, different kinds of overheads, and last, how to calculate the total cost of a product.

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