CONTENT 1-INTRODUCTION.......................................................................................................................................................1 2- MAVI'S ESTABLISHMENT PROCESS...................................................................................................................1 3- SIZE OF THE COMPANY.........................................................................................................................................1 4- MAVI’S MISSION AND VISION.............................................................................................................................2 5-ORGANIZATION OF THE COMPANY....................................................................................................................2 6-SWOT ANALYSIS OF THE COMPANY...................................................................................................................3 7-THE STRATEGIC PLAN OF THE COMPANY.........................................................................................................3 8-THE PROBLEMS MAVI FACED DURING THE LAST 5 YEARS..........................................................................4 9-INNOVATIONS............................................................................................................................................................4 9.1-MAVI’S PRODUCT INNOVATIONS...............................................................................................................4 9.2-COSTUMER LOYALTY PROGRAM INNOVATION.....................................................................................4 10-AWARDS....................................................................................................................................................................4 11-THE SENIOR EXECUTIVES OF THE COMPANY.................................................................................................5 12-THE ADVERTISEMENT STRATEGY OF THE COMPANY...................................................................................5 13-SOCIAL RESPONSIBILITY ACTIONS OF THE COMPANY.................................................................................5 14-MAVI’S SUSTAINABILITY REPORT......................................................................................................................6 14.1-MAVI’S SUSTAINABILITY JOURNEY........................................................................................................6 14.2-MAVI’S SUSTAINABILITY GOALS............................................................................................................7 15-THE ADVICE MAVI EXECUTIVES MAY OFFER TO A BUSINESS STUDENT.................................................7 16-FINAL THOUGHTS...................................................................................................................................................7 17-REFERENCES............................................................................................................................................................9 MAVI 1.Introduction Mavi is a Turkish clothing brand established in Istanbul in 1991 by Sait Akarlılar. Known especially for its jeans, the company has gained international acclaim in the denim sector. Mavi provides a diverse selection of apparel for women, men, and children, focusing on premium quality and customer-oriented designs with its slogan, "Perfect Fit." Based in Istanbul's Kağıthane district, the brand currently operates in over 35 countries and has established itself as a leading name in regions such as Europe, North America, and the Middle East. Mavi also serves a wide global audience through its stores in key cities like New York, Berlin, and Moscow. 2.Mavi's Establishment Process Sait Akarlılar, the founder of Mavi, was born on October 31, 1940, in Istanbul to a family that had migrated from Sarajevo. His father worked in various freelance jobs, and Sait completed only primary school. He faced early hardships, losing his mother in 1947 and his father in 1954. At fourteen, he began working as a tailoring apprentice, focusing on jacket making. By nineteen, he had mastered sewing sportswear items like coats and trousers.In the 1960s, the Akarlar family became the distributor for Levi’s in Turkey, where Sait Akarlılar actively participated, gaining firsthand experience with global denim trends. This exposure provided him with substantial knowledge in the industry. Building on this expertise, he founded Güven Tekstil A.Ş. in the 1970s, which soon gained a reputation for quality and reliability, securing its place in Turkey’s textile sector.In 1984, Akarlılar shifted his focus to denim and founded Erak Giyim Sanayi, expanding and rebranding his business. As demand for denim surged, Erak Giyim quickly became a leader in denim production, achieving success both domestically and internationally. This growth highlighted Turkey's increasing prominence in the global denim market.The success of Erak Giyim inspired Sait Akarlılar to establish Mavi in 1991, leveraging his extensive experience in the textile and fashion industries. By the 1980s, Turkey was seeing a significant increase in exports. Blue jean fabric production, which had previously been nonexistent, began to develop, and foreign brands entered the Turkish market. Recognizing the potential of this booming industry, Akarlılar envisioned Mavi Jeans.Turkey’s youthful population was a key factor in Akarlılar’s strategy. He understood that jeans were a dominant segment of casual wear, accounting for 80–85% of the market during peak periods and never falling below 60%. With these insights, he made the strategic decision to invest in both manufacturing and branding, laying the foundation for Mavi’s future success. 3.Size of the Company Mavi is a prominent fashion and retail brand, best known for its denim products. The company designs and sells a variety of items, including jeans, t-shirts, shirts, jackets, and other casual apparel. Positioned as a "lifestyle" brand, Mavi strives to deliver the "perfect fit" to its customers. Alongside its denim collections, it offers a wide range of everyday and casual clothing options.Currently, Mavi operates in 34 countries, reaching customers globally through physical stores and online platforms. It has a presence in 4,500 sales points worldwide, including 485 exclusive Mavi stores. Annually, the brand sells over 7 million pairs of jeans. Reflecting youthful energy and creativity, Mavi regularly updates its collections to 1 stay aligned with fashion trends, aiming to provide an engaging and inspiring experience for its customers.In 2022, Mavi generated 21 billion TRY in revenue, which grew by 25% to reach 26 billion TRY in 2023. However, its net profit decreased by 9%, dropping from 1.9 billion TRY in 2022 to 1.7 billion TRY in 2023. The company’s consolidated channel revenues consist of 69% from retail sales, 22% from wholesale, and 10% from ecommerce.Mavi’s customer base is composed of 63% men and 37% women, reflecting its broad appeal across different demographics. 4.Mavi’s Mission and Vision -Mavi's Mission: Mavi’s mission is to provide innovative, high-quality, and stylish products, ensuring that everyone can find a "Perfect Fit" that suits them and makes them feel comfortable. The brand operates with a customer-oriented approach, aiming to build strong loyalty by balancing design, quality, and comfort in its products to enhance customer satisfaction. -Mavi's Vision: Mavi’s vision is to be a leading denim and lifestyle brand both in Turkey and internationally. The brand is driven by its "All Blue" strategy, which integrates environmental sustainability into its business processes and promotes an innovative approach in the fashion sector. Key aspects of Mavi’s vision include: Sustainability: Commitment to environmentally friendly production processes and the use of recycled materials, promoting ecological awareness. Innovation and Technology: Leading the industry by adopting innovative technologies in design and manufacturing. Global Expansion: Increasing brand awareness in target markets and progressing as a global player. Customer Satisfaction: Providing a personalized shopping experience for each customer. 5.Organization of the Company The exact organizational structure of Mavi Jeans has not been explicitly detailed in public sources. However, as a globally recognized retail and fashion brand, Mavi likely operates with a matrix or hybrid organizational structure, which combines elements of functional and divisional structures to manage its extensive operations across multiple regions and product categories. Key Characteristics of Mavi's Organization: 1. Functional Specialization: Teams are organized based on functions like design, production, marketing, and sales, ensuring expertise in each area. 2. Global Divisions: With operations in 37 countries, Mavi likely has regional divisions to address specific market needs and cultural preferences. 2 3. Innovation Committees: Mavi's focus on sustainability and technology suggests it may employ cross-functional committees to manage projects like its "All Blue" sustainability initiative. 4. Digital and Customer-Centric Focus: The company emphasizes omnichannel strategies, suggesting integrated teams that bridge traditional retail and e-commerce. 6.SWOT Analysis of the Company -Strengths; Mavi is a fashion brand catering to young men and women, designed to make them feel youthful and connected to their cultural identity. Mavi designs and produces its clothing with the "Perfect Fit" concept, specifically tailored to match the body measurements of Turkish society. The increasing fame of celebrities like Kıvanç Tatlıtuğ and Serenay Sarıkaya, who serve as the brand ambassadors for Mavi, contributes to the brand's growing popularity. -Weaknesses: Although Mavi is a Turkish brand, its products are considered quite expensive. Customers often express dissatisfaction with Mavi products, reporting that they tend to become loose and lose their color over time. -Opportunities: The price increase of products from affordable clothing brands like LC Waikiki and Defacto, with their prices now being almost the same as Mavi's, makes Mavi a more attractive option in terms of price/performance compared to its competitors. The faster pace of fashion changes compared to the past is causing especially young people to consume more in order to keep up with the trends. -Threats: The interest rate policy implemented by the Central Bank could lead to a decrease in consumption in the future, which may negatively affect Mavi's sales. Mavi collaborates with many influencers. If any of these influencers engage in inappropriate behavior, it could negatively impact the Mavi brand as well. For example, a few months ago, a defamation campaign was launched against influencer Ecrin Su Çoban, with whom Mavi had a partnership. However, the way Ecrin Su Çoban and her lawyer handled the situation poorly led people to believe the defamation, and as a result, they were angry at Mavi for partnering with the wrong individuals. 7.The Strategic Plan of the Company Mavi's strategic plan focuses on sustainability, digitalization, and growth in global markets. Looking ahead, Mavi aims to increase product variety, expand into new markets, and enhance customer experience through digital platforms. Additionally, the brand is committed to adopting environmentally friendly production methods and a sustainable fashion approach, with the goal of building an eco-conscious brand image. Furthermore, Mavi continues to 3 develop effective collaborations and marketing strategies to establish a strong brand identity in both local and international markets. 8.The Problems Mavi Faced During the Last 5 Years During the COVID-19 pandemic, Mavi faced several significant challenges. Like many other retail businesses, the company struggled with supply chain disruptions, store closures, and a sharp decline in in-store sales due to lockdowns and social distancing measures. The shift to e-commerce became essential as customers increasingly turned to online shopping. However, the surge in demand for online sales led to logistical difficulties, including inventory shortages and delays in product deliveries.To overcome these issues, Mavi focused on expanding its digital presence and investing in e-commerce platforms. They adapted by offering flexible shopping options, such as click-and-collect services, and improved their website and mobile app to enhance customer experience. Additionally, Mavi worked to maintain strong relationships with its suppliers to manage production and stock challenges. The company also implemented strict health and safety measures in its stores, adhering to government guidelines to ensure the safety of employees and customers. Despite the challenges, Mavi's ability to leverage its strong brand identity and agile operations helped it weather the storm and maintain business continuity during the pandemic.The brand also faced increasing competition in the global retail market and had to adapt quickly to changing consumer preferences while maintaining its commitment to sustainability. To address these challenges, Mavi leveraged its digital tools and customer relationship management (CRM) systems to engage its large customer base more effectively. 9.Innovations 9.1.Mavi’s Product Innovations; The brand strengthens its positioning with premium segments and exclusive collections that provide a complete look, such as Mavi Lux Black, Mavi Icon, Mavi Studio, Mavi 100, and Alfabe. The casual lifestyle categories are expanding with collections like logo, sweatshirt, and Maviterranean. Brand collaborations, such as MarcheXMavi and Mavi Semt, continue to attract new and young customers while driving increased traffic. 9.2.Costumer Loyalty Program Innovation Customer data and product strategy are essential components of the brand's communication approach, with the customer loyalty program, Kartuş, having 9.2 million members in total. In 2023, Kartuş gained 1.3 million new customers. This loyalty program is widely utilized in retail transactions across Turkey, with approximately 6.9 million active users over the past two years, and its mobile app has been downloaded by around 5.7 million individuals. 10.Awards Mavi holds a dominant position in Turkey's denim sector, commanding around 21% of the market share, according to IPSOS data. The brand is also recognized as one of the leading choices for both men's and women's ready-to-wear apparel. Trust in the brand is high, as evidenced by Future Bright's trust index research, which names Mavi as the most trusted brand in Turkey. On a national scale, Mavi ranks 132nd on the "Fortune 500" list, positioning itself as one of the top 500 companies in the country. Within its sector, it ranks third among brands specializing in ready-to-wear, innerwear, and sportswear. Furthermore, Mavi's 4 commitment to sustainable practices has earned it an 8th-place ranking on TIME’s list of the World’s Best 500 Companies, where it stands out as a leader in sustainable growth within the apparel industry. 11.The Senior Executives of the Company Mavi's Chairman of the Board is Ersin Akarlılar. He holds a bachelor's degree in Economics from Boğaziçi University and completed his master's degree in Finance and International Business at New York University's Leonard N. Stern School of Business. The company's CEO is Cüneyt Yavuz, who has a bachelor's degree in Political Science from Boğaziçi University and a master's degree in International Relations from Johns Hopkins University. The company's CFO is Bige İşcan Aksaray, who holds a bachelor's degree in Economics from Boğaziçi University and a master's degree in Business Administration from Boston University. The company's CMO is Serpil Berkan, who graduated from the Faculty of Communication at Istanbul University. 12.The Advertisement Strategy of the Company Mavi's advertising strategy is deeply integrated with its brand identity, focusing on engaging with young, fashion-conscious consumers. The brand relies heavily on celebrity endorsements, often featuring popular Turkish stars such as Kıvanç Tatlıtuğ,Kerem Bürsin,Merih Demiral,Serenay Sarıkaya,Bensu Soral and global stars such as Barbara Palvin,Adriana Lima,Elsa Hosk,Romee Strijd in its campaigns.These collaborations help Mavi reach a broad audience, particularly in Turkey, where these figures are well-loved. The company uses various media channels, including TV commercials and digital platforms, to create an emotional connection with customers, often emphasizing a lifestyle that aligns with youth culture and freedom. 13.Social Responsibility Actions of the Company The textile industry is responsible for significant greenhouse gas emissions across its entire value chain, from cotton farming to the final consumer product. Mavi is committed to reducing its carbon footprint as part of its broader climate action efforts. The company works closely with its suppliers to promote more environmentally friendly production processes. Mavi’s product lines incorporate sustainable and innovative materials, with the goal of increasing the share of revenue generated from these items within its overall sales. The company is also boosting its investments in renewable energy and launching eco-friendly initiatives like energy-efficient stores.Sustainability is a key priority for Mavi, which focuses on the responsible use of water, controlled chemical usage, waste management, and biodiversity preservation. Mavi aims to reduce its chemical usage while ensuring compliance with the Zero Discharge of Hazardous Chemicals (ZDHC) standards, which safeguard both consumer and producer health while minimizing environmental impact. The brand is also committed to using recycled materials in its packaging, aiming for 100% Forest Stewardship Council (FSC) certified packaging. Mavi’s waste management strategy aligns with a circular economy, reintegrating waste and by-products into the production system. Additionally, the company works on public awareness projects to protect biodiversity.Mavi's corporate social responsibility initiatives, inspired by youth, aim to create sustainable social benefits. Since 2014, Mavi has supported the Indigo Turtles project by the Ecological Research Society (EKAD), which focuses on the conservation of endangered sea turtle species. Furthermore, Mavi established the Mavi Scholarship Fund to support 33 female students in their university 5 studies in collaboration with the Turkish Education Foundation (TEV). This project continues to grow, helping more young people each year. Additionally, Mavi has supported the "SosyalBen Hope Truck" project, which offers psychosocial support to children in earthquake-affected regions.Mavi also launched a fun initiative inspired by cats, transforming its logo into "Miav" and creating a special collection of t-shirts and jeans. As part of its ongoing commitment to animal welfare, Mavi has set up Miav cat houses in stores, converting unused shelves into shelters for stray cats, helping more animals in need. 14.Mavi’s Sustainability Report 14.1.Mavi’s Sustainability Journey In 2006, Mavi emerged as one of the pioneering global brands to embrace the organic cotton movement, introducing the Mavi Organic collection made from 100% organic Aegean cotton. By 2010, Mavi had expanded its sustainable initiatives, launching innovative materials such as TENCEL™ and modal in the Mavi Premium line, while also introducing the Mavi Kids Tshirt collection made from 100% organic cotton. In 2014, the brand collaborated with the Ecological Research Society (EKAD) on the Indigo Turtles project to protect endangered sea turtles, with the Indigo Turtles T-shirt collection being produced using 100% organic cotton. Customers supporting this initiative helped fund efforts to protect baby sea turtles with every T-shirt purchased. In 2017, Mavi made significant strides in sustainability by replacing the light bulbs in its stores with energy-saving LED fixtures and went public with an IPO on Borsa Istanbul. The following year, in 2018, Mavi partnered with the eco-friendly material producer Lenzing to incorporate TENCEL™ lyocell and modal fibers into its products. By 2019, Mavi had introduced several eco-friendly changes, including the launch of the sustainable All Blue collection, the removal of leather from jean labels, the reduction of paper usage in product labels, and a streamlined packaging process for online shipments. Furthermore, the Remote Energy Management System was implemented in 10 pilot stores, and Mavi All Blue won the "Most Sustainable Collection" award at the Rivet Awards. The brand also published its Supplier Code of Conduct. In 2020, Mavi took a bold step towards transparency, becoming the first Turkish apparel brand to disclose its carbon footprint through the Carbon Disclosure Project’s (CDP) Climate Change Program, receiving a score of B. It also earned an A- in the Supplier Engagement Rating (SER) by CDP. The All Blue collection expanded with eco-friendly T-shirts made from 100% organic cotton, and Mavi collaborated with Coca-Cola to create a collection made from organic cotton and sustainable recycled materials. Mavi also switched to renewable energy for its head office and stores and signed the UN Global Compact. Additionally, the Sustainability Committee and working groups were formed. In 2021, Mavi introduced jeans made from recycled plastic bottles with the Mavi Pro Sport Repreve® collection and launched the “Mavi Transformation Launched” ad campaign. The brand also collaborated with the luxury streetwear brand Les Benjamins to design the sustainable Les Benjamins x Mavi collection, using organic, recycled, and eco-friendly materials. Mavi furthered its commitment to sustainability by partnering with TENCEL™ and using Better Cotton Initiative (BCI) certified cotton for its 30th anniversary Maviterranean collection. Mavi also obtained OCS (Organic Content Standard) and RCS (Recycled Claim 6 Standard) certifications and became the first Turkish company to report to the CDP Forests Program. The Remote Energy Management System was implemented across all Mavi stores. In 2022, Mavi became the first and only Turkish apparel brand to be included in the 2022 Climate Change A List by CDP. It also joined the Better Cotton program and received recognition for its sustainable collections, such as All Blue, Hemp, and Mavi Pro Sport, which were named the 'Best Sustainable Collection' at the Rivet x Project Awards. Mavi's Turkey head office earned ISO 14001 Environmental Management System certification, and the brand became the first and only apparel brand to be included in the BIST Sustainability 25 index. Mavi also published its first sustainability report, outlining its strategy and goals, and was added to the Borsa Istanbul Sustainability Index. In 2023, Mavi achieved another milestone, becoming the first Turkish apparel company to earn double A ratings for Climate Change and Water Security from CDP. Mavi also earned a B rating in the 2023 CDP Forests program, surpassing the industry average. The brand's greenhouse gas reduction targets were approved by the Science Based Targets initiative (SBTi). Mavi also achieved an "A" score in the Supplier Engagement Rating (SER) and launched several new collections, including All Blue Natural Dye, Mavi Upcycle, and Recycled Blue. Additionally, Mavi became a member of the Business Council for Sustainable Development (BCSD Türkiye). 14.2.Mavi’s Sustainability Goals Mavi’s sustainability goals include a commitment to reduce Scope 1 and 2 greenhouse gas (GHG) emissions by 70% by 2030, compared to 2019 levels. The company also aims to decrease Scope 3 GHG emissions from purchased goods and services by 55% per Turkish lira of added value by 2030, using the 2019 baseline. Mavi plans to achieve carbon neutrality by 2040. In addition, the company intends to source 100% renewable electricity for its operations by 2030. By 2025, Mavi aims to use only Forest Stewardship Council (FSC)-certified labels, cardboard, and paper packaging materials. Lastly, Mavi is working towards sourcing 100% of the cotton used in its denim products from sustainable resources by 2030. 15.The Advices Mavi Executives May Offer to a Business Student The first advice Mavi executives offer to a business student is that they should deeply analyze the needs, preferences, and behaviors.Mavi's success comes from knowing its customers, especially focusing on young, fashion-conscious individuals who value quality and style.Secondly,they would offer to create strong identity such as creating an attractive slogan and casting celebrities who can identify with the brand in the ads because Mavi's "Perfect Fit" message and collaborations with celebrities have strengthened its brand equity.Also,They would offer to focus on sustainiblilty because Mavi's "All Blue" strategy integrates sustainability into every aspect of the business, aligning with modern consumer expectations. 16.Final Thoughts As a consequence,Mavi is a brand established as a result of its founder identifying a market opportunity and taking the right actions to capitalize on it.Then this brand gained popularity due to its strong marketing strategies and expansion into the global market.Now,this brand is growing because they understood consumer preferences and adapted to their changing 7 choices.An entrepreneur should apply the strategies I’ve just mentioned,which Mavi implements,when starting a business. 8 17.REFERENCES - - - - - - - - - - Bu Hangi Ulkenin (2024, Sep 22). Mavi Hangi Ulkenin Markası, Sahibi Kim ?. https://buhangiulkenin.com/mavi-hangi-ulkenin-markasi-sahibikim/?doing_wp_cron=1734025967.7742960453033447265625 Wikipedia (n.d.). Mavi Jeans. Retrieved December 12, 2024 from https://en.wikipedia.org/wiki/Mavi_Jeans Mavi Company (n.d.). About Mavi. Retrieved December 12, 2024 from https://www.mavicompany.com/en/mavicompany/about-mavi Patronlar Dunyasi (2007, June 1). Işte Mavi'nin Dakota ve Hudson'u. https://www.patronlardunyasi.com/iste-mavinin-dakota-ve-hudsonu Asar, A.(2024, July 6). Terzi Ciragi Olarak Kariyerine Baslayan Sait Akarlilar, Nasil Oldu da Mavi’yi Global Bir Marka Haline Getirdi?. Webtekno. https://www.webtekno.com/mavi-kurulus-hikayesi-h146125.html Capital (2003, September 1). Akarlar’in Yeni Hedefi. https://www.capital.com.tr/sektorler/diger-sektorler/akarlarin-yenihedefi#google_vignette Mavi Company (n.d.). Mavi’de Biz ve Ilkelerimiz Retrieved December 12, 2024 from https://www.mavicompany.com/i/assets/documents/pdf/2020/mavidebizveilkelerimiz. pdf Bisektör (2024, March 22). Mavi, Şirketi Geleceğe Taşıyacak Yeni Büyüme Stratejisini Açıkladı. https://www.bisektor.com/mavi-yeni-buyume-stratejisini-acikladi/ Birkan, B.(2014, November 30). Mavı̇ jeans swot analı̇ zı̇ . Slideshare https://www.slideshare.net/slideshow/mavi-jeans-swot-analizi/42188976 Mavi (n.d.). Hakkimizda. Retrieved December 12, 2024 from https://www.mavi.com/hakkimizda Mavi Company (2024, September 17). H1 2024 Results Presentation. https://www.mavicompany.com/i/assets/documents/2024/Q2/Mavi%202Q24%20Resu lts%20Presentation.pdf Mavi (n.d.). Mavı̇ ’s Sustainability Journey. https://www.mavi.com/sustainability/index-en.html Mavi Company (2022, December 12). 2022 Q3 Results Press Release. https://www.mavicompany.com/i/assets/documents/pdf/2022/Q3/Mavi_Q3%20RESU LTS.pdf Mavi Company (n.d.). Reklam Filmleri. Retrieved December 12, 2024 from https://www.mavicompany.com/tr/iletisimstratejisi/reklam-filmleri Mavi Company (n.d.). Global Imaj. Retrieved December 12, 2024 from https://www.mavicompany.com/tr/globalimaj/global-imaj 9 - - Mavi Company (n.d.). Sosyal Sorumluluk. Retrieved December 12, 2024 from https://www.mavicompany.com/tr/degerler/sosyal-sorumluluk Mavi Company (n.d.). 2023 Annual Report. Retrieved December 12, 2024 from https://www.mavicompany.com/i/assets/documents/2024/Q1/MAVIANNUALREPOR T2023.pdf 10
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