Strategic Marketing Plan for Caroll

Résumé du document

Caroll wants to diversify its activities by investing in China. However, is it relevant? Even if China is one of the most dynamic and competitive market in the world, does Caroll have all the resources to invest in this “new land of opportunities”? Indeed, Chinese market is very attractive. In spite of a slowdown of the Chinese growth (the International Fund Monetary has predicted a growth of 9.5% for the current year), its economical health is making the occidental countries dream. Thus, investing in China can be a positive boost for a firm. A proof of that is the successful setting up of Carrefour in China. Indeed, Carrefour realized a turnover of €101 billions in 2010. 10,89% of this turnover was made in China1 and increased of 24,1% comparing the past year.

Moreover, it permits to the French group to compensate for the losses in Europe. Caroll should take advantages of an implementation in China. Even if Caroll is operating in another sector, the chances of success seem to be high. However, how can Caroll can successfully invest the Chinese market? We will respond to this question step by step, using the nine-question method,developed by Robert Fonteijn (professor at the ISEG).In a first part, we will respond to the four first questions in order to see what the different forces particular to Caroll are.

Extraits

[...] We will use tools seen in the Strategic Marketing seminar to create a marketing strategy. We will also use the Strategic Marketing course and the International development strategy course of the past year, made by Robert Fonteijn. As a disclaimer, we did not have access to the complete financial information, which did not allow us to make a BCG matrix. Introduction Caroll wants to diversify its activities by investing in China. However, is it relevant? Even if China is one of the most dynamic and competitive market in the world, does Caroll have all the resources to invest in this land of opportunities”? [...]

[...] In a country where there is a lot of counterfeiting, it is very hard to fight against this phenomenon. But it is always relevant to protect our product, in the World Intellectual Property Organization, in order to protect our concept. How can Caroll deepen these “core competencies” across its business ? Caroll should launch limited editions, where these “core competencies” are the most visible. For example, it can launch a limited edition of clothes, with more fun, which express all the imagination of the Caroll‟s designers http://www.ciao.fr/Avis/Caroll_mode__115564 Page 9 sur 28 http://en.oboulo.com Caroll “core competencies” are not different across different segments. [...]

[...] Two concepts are crucial in China : the trust (Xinyong in Chinese) and the personal relation (Guanxi)10. For the first concept, the firm has to show its capability to adapt itself to the Chinese market. The company has to show that it know what are the expectations of the customers, what are their needs and that it is able to offer the product which meets their needs. The second concept is the most important. The firm cannot be impersonal, an interaction is important. A Chinese client will value the Guanxi, more than its satisfaction ! [...]

[...] appendix) First, we have to see what the customers really value in the Caroll‟s product. Different opinions available on Internet show us what customers appreciate in this brand. Page 8 sur 28 http://en.oboulo.com We looked in several websites to see what the customers are enjoying in the brand. One website8 provides many opinions and we used them to identify what they are really value. To proceed, we indentified all the positive opinions of the customers and see what the two most common criteria are. [...]

[...] In order to exist, Caroll will find the best position to the firm in order to find the best position in the market http://donnees.banquemondiale.org/indicateur/GB.XPD.RSDV.GD.ZS http://www.irpi.ccip.fr/upload/pdf/etudes_juri/06_IRPI_Les_transferts_de_technologie_avec_la_Chine.pdf Page 14 sur 28 http://en.oboulo.com The supplier power : as we saw in the SLEPT analysis, China has a qualitative workforce so it can work with a local supplier. Its bargaining power is low : there are many suppliers for the textile. The new entrants : the barriers to entry on the Chinese market are on the average. Indeed, a foreign firm does not need to have an important amount of money to invest in the country. It must have a good positioning and a well understanding of the Chinese (and their needs). However, the loyalty of the Chinese customers is high. [...]