Strategic marketing plan for Caroll (the French "fashion house") in China

Résumé du document

Today, with globalization, companies have to establish in countries other than their origin country, in order to be more competitive and to resist in the market, especially in the clothing retail market. So, most companies open new subsidiaries in other countries and more on emergent markets with a good and high growth. One of the most coveted markets is China's. Indeed, China had an incredible growth which reached 8.7% in 2009 and in the first semester in 2010, it reached about 12%.

It is thus really attractive for companies which want to expand and increase their profits. Also, with this growth, the consumers' purchasing power increases too. As a result, Chinese consumers have more revenues and spend more money for consumption of current goods, in particular for clothing. Indeed, their consumption increasingly becomes the consumption in western countries. For this reason, many clothing retail companies started to establish in China, when the country opened in 1990's. For example, there were LVMH, Gucci, Etam, HSM, Cartier.

In this case, we are going to study the company Caroll, which is a French fashion house, and which has decided to establish in China, to become more international and attract a new target, the Chinese middle class. Indeed, this class is the most important in China and has a good growth in its purchasing power. However, to set up in a new market, especially in China, we have to analyze the market environment and its differences, to adapt more easily. The goal of this study is therefore to design a strategic marketing plan for Caroll in China. To achieve it, we will analyze the company (overview, history, SWOT). Then, we will do a market audit of China (PEST, clothing retail market, competitors). Finally, we will make a strategic marketing analysis. We will use some tools (7Ps, Boston Box, Ansoff matrix).

Extraits

[...] So, the goal of this study is to design a strategic marketing plan for Caroll in China. To achieve it, we will analyze the company (overview, history, SWOT Then, we will do a market audit of China (PEST, clothing retail market, competitors, Finally, we will make a strategic marketing analysis. We will use some tools (7Ps, Boston Box, Ansoff matrix Situation analysis of Caroll Overview of Caroll In 1963, Raphael Levy and Joseph Bigio created Caroll, a new brand to conquer women who feel good about themselves and who want the same thing in their clothes. [...]

[...] So, it's really attractive for companies which want to expand and increase their profits. Also, with this growth, the consumers' purchasing power increases too. So, Chinese consumers have more revenues and spend more money for consumption of current goods, in particular for clothing. Indeed, their consumption looks increasingly to the consumption in western countries. It's for that, lot of clothing retail companies started to establish in China, when the country opened in 1990's. For example, there were LVMH, Gucci, Etam, Cartier. [...]

[...] Valued Proposition: what to offer - Clothes: simple, chic, elegant with high quality Valued network: how to deliver - in stores, in internet site: urban area, shopping centers SMART Objectives Goal of Caroll is to entry in China to open new stores in order to win market shares and to increase its profits and its positioning in the world. Specific: Caroll want to enter on the Chinese market. Measurable: Caroll want to attract women on middle market (about of the target). Achievable: answer to customers' needs to realize goals Realistic: Caroll is already present in Japanese market and it is a success. [...]

[...] Also, for two years, Caroll develops its distribution network. Indeed, now, we can purchase its products on internet. This proves, Caroll follows trends and adapts to new way to consume. Then, there are other services like advices from stylists and professionals fashion which help consumers for their So, this dynamism constitutes one of the strength of Caroll, which finds the good middle between trendy fashion and mass consumption, stylists and normal consumers. SWOT analysis II) Market Audit: the Chinese market analysis PEST Analysis The textile Market in China The 3 main elements which characterize the textile market in China are the following: - An urban population (more and more) - A market dominated by women - The emergence of middle-class Competitors Direct competitors In France, Caroll has a lot of competitors and this last are present too in the Chinese market. [...]

[...] So, there is a big opportunity for it, to gain and loyal consumers. Then, its target is urban, and more and more Chinese people become urban. So, this target will increase again, in next year. But Chinese consumers are really difficult. So, we have to adapt to their needs and expectations. [...]