Caroll in China: strategic marketing plan

Résumé du document

With an economic growth of nearly 10%, China looks very attractive to a lot of companies today. The emergence of a strong middle class characterized by a high purchasing power makes opportunities plentiful. However, China's huge market is much more complex and specific than western ones. That is why designing a tailor made marketing strategy is crucial if a business wants to succeed there. Is China a good potential market target for a French fashion company? Are French fashion companies able to adapt to this very specific market? Could they be successful in it? This is what we are going to study in this article with the example of Caroll, the largest French clothing retailer by sales. Attracted by this fast growing market, the company wants to set up operations in China and make the best of this opportunity. The aim of this study is to design a strategic marketing plan for Caroll in China. In order to achieve this result, we will analyze the company in the first chapter, and take a closer look at Caroll's history, positioning and culture. In the second chapter, we will conduct a market audit of China. We will see what are the main characteristics of the country, what consuming means in china today, what the attitudes of Chinese middle class consumers are regarding brands and prices, and we will finish by taking a closer look at the Chinese clothing retail market with a competitors analysis. In the third and last chapter, we will practice a strategic marketing analysis using appropriate tools such as the 7 Ps, the 3 Vs, Porter's five forces, the Boston Box, the Ansoff matrix and a SWOT analysis. The conclusion will be dedicated to finding an appropriate solution to our issue: can Caroll be successful in China?

Extraits

[...] - There is a huge diversity of competitors (local, foreign, counterfeit, internet ) - Huge competition on prices - Difficulty to make Chinese customers loyal Determinants of buyer power - Thanks to its high purchasing power, the “middle class” is able to afford almost what it wants. - The important role of word to mouth. Negative news is spread very quickly. - The industry is highly competitive, bargaining power of customers is important. Boston Box Definition Boston Box evaluates the products of an organization according to their market share and to their growth prospects. [...]

[...] However, China's huge market is very more complex and specific than western's ones. That is why designing a tailor made marketing strategy is crucial if a business wants to succeed there. Is China a good potential market target to implement a French fashion company? Are French fashion companies able to adapt to this very specific market? Could they be successful? That is what we are going to study in this memo with the example of Caroll, the French largest clothing retailer by sales. [...]

[...] Consequently, there is a strong demand emerging in the country. On top of that Caroll's positioning perfectly suits to its target (middle class women): quality product, French fashion brand, strong image, moderate prices, established in big cities . However, during this study we noticed that competition was fierce on this market. Many European or American brands are already well established in China. The risks of counterfeits plus local fashion brands add to this competition. Moreover, China is a very particular country (role of government) and the way to do business there is specific (importance to have local partners). [...]

[...] 80's: The Revolution 1980- It added a ready-to-wear collection and its first franchise shops in France. In 1984, Caroll opened its first branch shops. 1987/88- Caroll International was listed on the stock exchange and the André group purchased a large share of the company. 90's: The Revolution 1994- Caroll International defined a new positioning for itself, creating the “Caroll Paris” brand and introducing new, original initiatives with a view to becoming a major player in the world of fashion, for a targeted yet sizeable female target, well-informed and with high standards. [...]

[...] Website will have to develop a strong and close relationship between the brand and its consumers. The staff will also have an important role in that mission. It will thus to be very well trained. Staffs are the only physical link between the brand and the consumer. The stakes are high. Process Processes refer to the systems used to assist the organisation in delivering the service. Organization is thus critical in term of logistic especially. Having on the shelves the right products at the right time is a big key to succeed. [...]