Strategic Marketing: Caroll on the chinese market

Résumé du document

Nowadays, companies are upping their competitive index in order to keep up with the globalization trend sweeping the international business landscape. A company cannot hope to survive only by opening subsidiaries in its own country. So, these companies are forced to open subsidiaries in other countries; however, this necessitates some previous studies to ascertain if it would be simple or hard to establish operations in a certain country. The cultural, demographic, geographic or economical differences can often be reasons for the failure in the implementation of a company on a market.

This document deals with French company Caroll's intention to enter the Chinese market. This “middle market” is very difficult owing to the country's cultural disparities from the Western nations. Initially, we will present an overview of the company and followed by that of the Chinese market. Finally, we will present our marketing plan for its implementation.

Founded in 1963 by Raphael Levy and Joseph Bigio, the company was originally named “Les tricots Caroll”. It gained immense popularity with its knitwear products and premium Shetland wool and has amassed over 1,000 retailers. In the 80s, it started to evolve with the addition ofa “Prêt à porter” collection, and opened its first stores in France. In 1984, it opened its first branches.
In 1988, Caroll International registered itself on the stock market and the Group Vivarte took over the knitwear retail chain.

In 1994, Caroll defined a new position on the market by creating the special brand “Caroll Paris”. The company mainly targeted the modern women, who were well aware of their needs and not hesitant to voice them either. In couple of years, Caroll International reinvigorated its image and developed its market shares. In 1997, it began its development in other countries in Europe and all over the world. Currently, it has 310 stores worldwide, in Spain, Portugal, Switzerland, Lebanon and Japan.
In the past forty years, Caroll has gradually established itself as one of the most important successes in the “Prêt à porter” (ready-to-wear) sector in France. Today, Caroll is appreciated for the quality of its products, its style and its know-how.

Extraits

[...] Here, the French company Caroll wants to enter the Chinese market. This “middle market” is a very difficult one, because of the country's cultural differences. We will make first a presentation of the company Caroll and then of the Chinese market. Finally, we will present our marketing plan for its implementation. Presentation of the company Caroll Founded in 1963 by Raphaël Levy and Joseph Bigio, the company was named tricots Caroll”. At the beginning, it concerned only the stitch for knitting and the Shetland. [...]

[...] Here is the signification of the different categories: Stars: There are products in their growth phase. They will require in the future some investments, to maintain the high share in a growing market. Here, for Caroll, it concerns the trousers and jeans. These two products can become in the next years some classical ones, so even if the investment is expensive, it is a good one. Question marks: There are the new products in a market with a high growth rate. [...]

[...] The main target of the company is a feminine clientele, aware and exacting. In couple of years, Caroll International turned out well a complete change of image and developed hardy its market shares. In 1997, it began its development in other countries in Europe and all over the world. It has today 310 stores worldwide, in Spain, Portugal, Switzerland, Lebanon or Japan. Since forty years, Caroll is really one of the most important successes in the sector of “Prêt à porter” in France. [...]

[...] Chinese people are getting richer and look that Caroll Company wants to enter the middle market and not the high one of China; it will be easy for Caroll to find new customers in this huge country. Also, with the Olympic Games next year and the Universal exposition in 2010, there will be a lot of tourists from all over the world in China in the next years. - Barriers to entry: China became a socialist market, so now it is easy to enter this one. Consequently, it will be easy for Caroll to enter this market. [...]

[...] Look that the name of the brand is “Caroll Paris”, it will be instantaneously recognized as a French product, and moreover of Paris, which can be interpreted by the foreigners by a luxurious product. The promotion must be done around the fact that Caroll is a French company, with high quality products, beautiful and a good cut. It should use the different possible media, such as commercials on TV, radio and advertisings in the specialized magazines for women. - People: The Company must use appropriate staff and people such as sales women. It must recruit the right staff and train it as well to be adapted to the customers and the market. [...]