This document develops a strategic plan through the main tools; the first section is dedicated to the presentation of the company and its competitive market. Tools including the positioning of the brand, SWOT analysis and Value chain of the company Caroll are used to understand the strengths and weaknesses of the brand.
The second part is dedicated to the Chinese market. The aim is to observe the opportunities offered by the market in terms of target, present competitors, therefore PEST analysis, 5 forces of PORTER are used.
In the final part, the strategic plan is developed from the two previous parts. This plan is developed with main tools such as the Boston and Ansoff Matrix. The conclusion of this file revolves around the marketing mix to suggest solutions of advertising, distribution, adaptability of products to the market, etc.
Nowadays, it is imperative for a company to tap the best market places. Therefore, they must analyze these markets with the aim to find the most appropriate one. It is more difficult with the growing economies. One country is nevertheless more attractive than the others. China is, in fact, for a few months now, the second biggest world economy behind the United States. This country is developing itself faster than any other country.
Caroll has good expectations for such a country as France represents the third country of Europe investing substantial amounts in China.
Moreover thanks to UbiFrance, we know that more than 1,000 companies have established their own offices in China. And there will be more companies which are just coming to visit the country with the aim to analyze the opportunities and threats that the market offers.
This project is going to establish a marketing plan for the company Caroll which belongs to the group Vivarte. We are going to use many tools including the value chain analysis, the Boston box, Ansoff matrix and Porter's five forces. Moreover, we are going to analyze their internal and external environment to tap the Chinese market.
[...] The fashion market & competition Internal Audit: In the clothing retail sector, it has been estimated that 80% of the companies starting a new business will fail in less than 5 years. Caroll already holds a strong position in many markets. That is why it is not so risky. What is risky is failing in China as the potential is too substantial. There are in fact different step to focus on: - Analyze the market: understand the needs of customers, the environment, etc. [...]
[...] Would a company such as Caroll which targets the middle class in the fashion retail succeed? Is the population adapted to such a type of fashion apparel company? We are going to answer to these questions through different steps. First, we are going to present the company Caroll and it group Vivarte. Subsequently, we are going to analyze the market place of China and its opportunities. Tools such as the 5 forces of Porter and a SWOT analysis will allow us to assess the status of the Chinese market. [...]
[...] Source: http://www.nationmaster.com/country/ch/Age_distribution SLEPT Analysis Political Corruption & counterfeiting are present Signed the Kyoto protocol in 2002 Member of the WTO Economic Largest population of the world (more than 1 billion) Just became the 2nd biggest world economy Growth in export Highly qualified staff & employees for low costs Social Problems of environmental issues (storm) Issue of poverty, regions touched by unemployment Technological A market with local competitors having a huge level of innovation & development of technology Legal Laws with restrictions regarding foreign companies investing in China PORTER's 5 forces - Supplier power In the aim to reduce costs, Caroll will have to find local suppliers and work with Chinese workforce. [...]
[...] The culture of China which gives huge importance to tradition may perceive in a threat in Caroll's Western image. First, the brand has to consider all the aspects of the Chinese market in order to adapt its products. The channels of distribution and advertising campaigns have to be adapted to reach customers. It needs to insist on the “French identity” which is a strong advantage in China. The first option to apply is to launch two official stores, one in Beijing and one in Shanghai to develop the brand. [...]
[...] - In terms of 3 Vs, the business model of Caroll is based on the largest presence as possible with stores addressed to mainly middle class women interested in fashionable clothing. The Brand Positioning Matrix Analysis of the competitors The conclusion we can extract is that concerning the Chinese market, the three most dangerous competitors are Manoukian, Zara and H&M. H&M is not a direct one in France, because the population targeted is younger and the prices are lower but in China, the popularity of the Swedish brand makes it a direct competitor. [...]
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