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Strategic Management Homework (1000-1500 words)
In order to define a suitable strategy for an organization, it is important to assess the internal and external environment of the organization. Select an organization that you are familiar with or working and:
1. Using various environmental scanning tools such as Value Chain Analysis, 5Ms, Porter five forces, PESTCCLE, key successful factors, benchmarking or other tools to assess the environment of the organization.
2. After assessing the company, summarized the finding by SWOT analysis.
3. Provide recommendation for the selected organization.
Requirement:
The essay must be type written with formal formatting.
title page is required.
All the names of the group member should be typed on the title page.
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i will upload a sample format for yours use thank you
European university
Global Marketing / Cases in Marketing
ASSIGNMENT
The Success of GIORDANO
Name:
Student No.: ——
31 Oct, 2009
CONTENTS
Page
Executive Summary ………………………………………………………… 1
Introduction ………………………………………………………………… 1-2
Target Markets ……………………………………………………………….. 2
Segmentation Base …………………………………………………… 2-3
(1) Geographic Segmentation ……………………………………….. 3
(2) Demographic Segmentation ……………………………………… 3
(3) Psychographic Segmentation …………………………………. 3-4
(4) Benefit Segmentation ……………………………………………… 4
The Effective Targeting of Market Segments …………………………… 4
(1) Identification ………………………………………………………… 4
(2) Sufficiency ………………………………………………………… 4-5
(3) Stability Accessibility ……………………………………………… 5
Targeting …………………………………………………………………….. 5-6
Positioning ………………………………………………………………….. 6-7
Recommendation ……………………………………………………………. 8
Conclusion ……………………………………………………………………. 9
References …………………………………………………………………… 9
Executive Summary
GIORDANO is one of the global brands of apparel manufacturer and retailer. In order to retain its brand equity and future develop of its profitable business, we have to discuss the marketing strategy by approaching their business values (Quality, Knowledge, Innovation, Service and Simplicity.) to gain a better understanding of their needs and want so as to determine the future business strategy while there are a lot of players entering the market.
In the following, we will thoroughly examine the effectiveness of market segmentations, how GIORDANO maintain its competitive advantage in future by segmentation, targeting and positioning. Also, based on the summarization and analysis of these findings, some recommendations are provided for company future improvement and development.
Introduction
Company Information – GIORDANO
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Giordano, International Limited is a retailer of men’s, women’s and children’s quality apparel, accessories and supplying products to third parties, founded at 1981 by Jimmy Lai in Kowloon, Hong Kong. Giordano has become a pioneer of customer service in the Asia-Pacific region and, as of January 2009, currently employs more that 8,000 people and operates 1,900 stores worldwide in 30 countries. The company is Asia-Pacific’s most successful retailer and sells its name under the brands of “Giordano”, “Giordano Concepts”, “Giordano Junior”, “Giordano Ladies” and “BSX” (Blue Star Exchange). Giordano has been publicly listed since 1991 and since then trades on the Hong Kong stock exchange under the stock code 709.
Base on its mission statement – to make people “feel good” & “look great”1, they believe that understanding consumer’s needs and wants are significant. They are not only value their customers, but rather value the very assets that drive the company towards its goals – the people. Summing up with its great effort in effective marketing strategies, today GIORDANO has become a one of successful brands in the market with its well-know products at economic prices. Now, there distribution networks are extending to over 1,900 stores and counters in Grater China, Japan, Hong Kong, Korea, Southeast Asia, Australia, India and the Middle East.
Target Markets
In such competitive markets, there are many similar retailers over the markets. Like Hon Kong, GIORDAN is facing difference competitors such as Esprit, Bossini, and UNIQLO etc. However, obviously, we noticed that Esprit is the major competitor of GIORDANO as both brands have very close features no matter in target market and consumers, products design, price setting and customer services. First of all, we would like to look at the target customers that GIORDANO has chosen.
Segmentation Base
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GIORDANO is one of the biggest brads by selling causal wear over the world markets. It has used different elements to analysis its target market which include Geographic Segmentation, demographic, Socio-cultural Segmentation and Behavioral Segmentation variables.
(1) Geographic Segmentation
GIORDANO has spread its business to more that 1,900 shops and over 30 territories worldwide. Nevertheless, Asia is the main geographic target segment for GIORDANO as there are more that 500 outlets located in Mainland China, Macau, Taiwan, Japan, South Korea, Vietnam, Singapore, Philippine, Malaysia, Thailand, etc., and Middle-east region in year 2009.
(2) Demographic Segmentation
The Giordano’s five brands (Giordano, Giordano Concepts, Giordano Junior, Giordano Ladies and BSX) are clearly separate in different segments by age, occupation, gender and income.
l Age – Giordano Junior – kids aged 0 to 10
l Occupation – Giordano Concept – target for customers whose have a purchasing power and stylish business class and young person
l Gender – Giordano – quality apparel for men and women
l Giordano Ladies – focus on female of women’s clothing
l Income – BSX – price setting lower than “Giordano”
(3) Psychographic Segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics.
l
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Social Class – Giordano sells the apparel in relatively affordable price; thus, it at upper lowers class (BSX), middle class (Giordano), and upper middle class (Giordano Concept).
l Lifestyle – Customer who seek for simple and leisure lifestyle
(4) Benefit Segmentation
l Location – The convenience is very important for such busy modern people. Giordano has to obtain prime location for its retail operations with it current cash hoard.
l Quality Service – Provide excellent service has become a reason for customer re-purchasing and brand loyalty.
The Effective Targeting of Market Segments
Basically, GIORDANO has made the effective market segmentation by fulfilling the following criteria.
(1) Identification – GIORDANO has well organized their products to satisfy the market segment needs based on their location, wealth, culture and lifestyle.
(2) Sufficiency – GIORDANO is targeting mainly on middle class people and its products are applicable to them. Also, the upper middle class population in worldwide has been trending up so the product may need to cover other classes.
(3)
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Stability – Middle class people have purchasing power, willing to buy and try new product for four seasons.
(4) Accessibility – In an economical way, the product has high profit margin as long as meeting the customer’s demanding quality of life. It is important to provide different accessories to achieve the people characteristic of try new product.
Targeting
Giordano embodies the contemporary lifestyle choices – simplicity in design and quality in substance. Its total commitment to superior service and outstanding quality and value has enabled the company to successfully execute on its multiple-market and multiple-brand strategy. It has successfully established retail operations worldwide while continuing to develop and grow the brands Giordano, Giordano Concepts, Giordano Ladies, Giordano Junior and BSX, each with its own individual market positioning and retail identity.
l Giordano – Mainstream Giordano brand focusing on quality apparel for men and women.
l Giordano Ladies – Upscale market women’s clothing much on the line to increase the market share. Operates mainly in the Asia Pacific region and prominent in China, Hong Kong, Singapore and Malaysia.
l
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Giordano Concept – A more up-market brand with a high emphasis on its own “less is more” retail approach involves innovative and modern black, white and grey monochromes in a large variety of styles. It target on the stylish and customers are willing to pay.
l Giordano Junior – Children’s clothing store that sells a variety of stylistic and basic apparels for kids aged 0 to 10.
l Blue Star Exchange (BSX) – A new product line of Giordano to cater to the needs of its existing value-of-money segment and gave its stores a “new look”. The young people are the target people by BSX offering design and styles and simplifying everything at low-price market.
Positioning
“The place the product occupies in consumers’ minds relate to competing products. Typically, positioning defined by consumers on the basis of important attributes”.2
Marketers can follow several positioning strategies. They can position their product on specific product attributes; on the needs they fill or the benefits they offer; according to usage occasions; for certain classes of users; directly against a competitors; away from competitors and for different product classes.
Giordano’s positioning strategy to be that of “value-for-money” and “quality merchandise at affordable prices” with high level of service provided to customers.
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A main competitor of Giordano is Esprit. They are seen as more up-market than Giordano, whilst being stylish and trendy. However, Esprit promoted a “lifestyle” image, even though it is positioned similarly to Giordano. So, Giordano could re-launch its image, to be more stylish and thus promoting a lifestyle and not just a brand. It is not necessary for Giordano to follow same positioning strategies for different market but it will depend on the market condition of a particular whether to follow standardized or customized strategy. The company can go after with standardized positioning strategies “value-for-money merchandise” for different market within the same region like South East Asian countries.
As Giordano face strong and similarly positioned competitors in the market, the pressure to adopt a slightly different position that suits the unique market situation of particular country may increase. Giordano may acquire another existing brand or start-up a new business entity under a different brand, with its own positioning strategy. For example, Bluestar Exchange, which catered to a more price-conscious, mass-market segment.
Giordano would do better to keep a consistent positioning, keep its management focused on its core strengths, and send a clear message to all its staff and customers. Giordano gradually and slowly moved its positioning upwards to meet the rising affluence, and hence the resulting desire for high-end apparel, of its core target segment.
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Recommendation
From the above analysis we have some recommendation for Giordano International Limited. These are:
(1) It is essential to start promotions to increase brand awareness when starting businesses in new market.
(2) The location and site selection for establishing Giordano’s outlet in different country will be critical. The company should carefully select the site to position their stores which will be convenient for the customers.
(3) Customer is the key and main factor for differentiation is customer care. The company needs to follow customized customer service strategy for each market segment.
(4) Giordano may maintain a restricted range of core products has allowed responding to market changes faster than its competitors. Also, needs to find out possibility of outsourcing to maintain low costs.
(5) To retaining as a global brand of apparel manufacture and retailer, it is very important for GIORIANO to maintain two key elements: 1) good quality standard of products, 2) high quality of service through provide job training, product knowledge, communication skills for staffs and after-sale service to customers.
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Conclusion
Overall, we recognized that GIORDANO is a healthy company with clear identified target markets, unique brand positioning and well executed marketing activities. The management conducted their business in such an excellent and professional manner which helped this brand to reach from Asia to the Middle East and India, Australia, Eastern Europe, and now in North America.
The business concept is well accepted by consumers and sales target are well delivered. We have found that brand positioning is very effective and it coheres with the target market selected through a suitable market segmentation method. Giordano sees itself as being more than just a retailer of casual apparel. It was able to successfully incorporate customer service a as part of its product. Besides its brand name, logo, style and quality, excellent service has become part of tangible products sold at Giordano store.
References
1. Giordano International Limited (Hong Kong). (n.d.). Retrieved October 25, 2009, from http://www.giordano.com.hk/web/HK/index.html
2. Philip Kotler and Gary Armstrong, Principle of Marketing. Prentice-Hall Publications (1999) (8th Edition)
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