INTRODUCTION 

 

HI, Am zamzam souleiman, 19 year old girl, muslim and am from Djibouti, i live in UAE-ras al khaimah, am a fashion design student, i like drawing and off course designing and dancing, singing and going out with my best friends, my dream is to be a successfull fashion designer and work in my own brand. This is my blog which i made to post my projects which is given by my teacher. 

BRANDS FACT

        This post contains information of 5 Brands, which is their, Overview of Marketing, Strategic Planning for Competitive Advantage, Ethics & Social Responsibility, The Marketing Environment, Developing a Global Vision, Consumer Decision Making  etc....

 

                                                       VERSACE

          Overview of Marketing (Brief History and Mission Statement)

  The bright colors and loud designs, Versace is world wide known for its clothing being functional and still clearly displaying a fashion forward look. 
                                                       


        Versace spiritually started Gianni Versace's ( founder of versace) at Gianni mother's small tailor shop in Italy. Where Gianni learned to love manufacturing clothes and designs. In 1971, Gianni moved to Milan. There is where he got his big break. He  got to design his own collection for genny, complice and Callaghan. A top fashion house at the time.

 Later on  in 1978, versace opened up his first boutique in Milan's via Della spign with the help of his brother santo versace. Since then the brand versace has been a Italian high-end fashion powerhouse. 
          
Versace became a world wide powerhouse when Donatella versace ( Gianni's younger sister) became the head position of operate and management. Her great public relation skills gave versace the world wide recognition. She was the first person to use celebrities and famous model in their ads. Now she's  currently the head of the versace brand.


                
After the tragic death of her brother Gianni. He was murder in front of his Miami mansion in 1997. Since the brand has expanded beyond just tops and bottoms. They branched off in handbags, belts, fragrances, eye wear, jewelry and shoes. The brand is currently made up of several lines which include versace jeans couture,versace couture, versace home collection and versus and versace collection.

 

   PRODUCT CONCEPT

         There are several product lines that creates the width of the product mix.

            The product lines are men's and women fashion and accessories, eyewear, young Versace, Versace homes, carnitas accessories, fragrances, fine jewelry and watches with a good amount of depth in each product with price ranges to satisfy any middle class people.

 

Versace's service mark, the "medusa head" has trademark.

Versace uses persuasive labeling by placing logos on all their packages

Target customers - The Milan fashion powerhouse Versace is known to target the wealthy. High class citizens from all around the world.

It's target market is mainly targeting women , men (mainly young adults) and as of now for the spring summer collection of '13 children.  

Creating the children line "Young Versace" will range Versace from infants to 65 years old.
 

Which creates opportunity to connect with kids at an young age to become loyal customers in the future. Young versace supplys clothing and others to infants, tweens and teens. That's why the lines has been successful. Targeting the tweens, which is the kids and the parents at the same time. Which is a great alter to versace's marketing mix because kids fashion is becoming  way more popular nowadays. Social networks such as Facebook and Instagram having pages of fashion kids displaying good sense of style and fashion. Versace has open 4 "Young Versace" in Italy. Draw the youngster attention with the vivid and dreamy colors all around the boutique.

    

A Versace also altered their marketing mix in the jewelry. Manufacturing more branded jewlery with their iconic medusa head logo. Consumers are developing a taste for precious adornment that broadcast brands. According to ken gassman, president of the jewelry industry research institute, " branded jewelry sales will double to 30 percent of the 59.2 billion us fine jewelry market in the next decade". So Versace has a bright future in the jewelry market.

 Strategic Planning for Competitive Advantage 

 

 

Versace focused on their strengths at fashion week this spring collection. The production orientated brand continuing to use their bright and stand out colors. Also incorporating their infamous medusa logo more in gold.

 

 One of Versace's best strategic planning was in 2011, when versace collaborated with the mass producing mid range retailing company h&m for a fall collection. They had a marketing mix. They had even exchange. H&M got to enhance their brand by having a collection designed by a top high end fashion company,Versace. Versace  received middle class customers. Not just the high class customers they advertise to.

 

Versace and h&m's four P's- ( product, place, promotion and pricing strategies)

Product-  The product was going to use both of their brands name. The product was a collection designed by Versace and the cloths, cuts and ??? We're from h&m. So the fashion high end looking clothing would be affordable.

Place- The distribution of the product was going to be sold at selected h&m stores. 

Promotion- Donatella Versace introduced her brand collaborating with h&m  at fashion week of 2011. Which was a big surprise because Versace previous denied collaborations with  mass producing company like h&m. Also it was the first it has been. This later on encouraged other high end fashion designers to collaborate with h&m and other mass companies.

Pricing - The pricing would slightly above h&m regular retail prices. Which was great deal getting Versace design clothing for that price.

Another time Versace used strategic planning with one of their SBU "Gianni versace spa". The newly chief executive officer Gina Giacometti ferraris, the former CEO of fashion house jil sander AG closed the 3 boutiques. Due to the environmental scanning of Japan. Japan was no longer one of the top imported of luxury goods anymore. Japan's market for imported goods fell 10% in 2009. From 1.09 trillion to 11.9 billions.

 

  Ethics & Social Responsibility

Versace's ethical code is applied to everyone in its company. All staff and those who are indirectly with with them like suppliers and consumers. It's the managements duty to give practical applications to values and principles containing the ethical code. Versace's ethical code is to accept responsibility in relations internally and externally, seek to I force trust within the company and form an united group with great team spirit.

Versace is always updating their ethical code in order to adapt to changes in social concerns and of the laws.

Staff qualifications

Employees of versace are key elements of the existence of the business. Dedication and the professionalism of the staff are determining values and conditions in the achievements of management objectives. The managements develop the skills and capacities of each employees so that energy and creativity of each individual is able to excel in performance and achievements of the company objects. Versace's management offers the entire staff equal opportunities for professional growth. Also all versace employees will be required to dress to a professional standard whenever they're working. 

Eco- friendly 

Versace has gone Eco friendly on certain product. Versace Eco clothing is made of natural fabric materials that are non toxic and less polluting in their production. 

Developing a Global Vision

Versace started to globally expand in 1984. When started showing his collections all around the world. The collections exposed there brand across the world. Also Versace being the go to designer for a- list celebrities such Elton John and the costume designer for big Hollywood movies like "Judge Dredd " starting Sylvester Stallone.

So in the 1990s , Versace started expanding boutiques all around the world. Versace now has 128 boutiques in 6 out of  the 7 continents in the world, adjusting the prices and promotion for boutiques in different areas. But only having 5 boutiques in their home country of Italy. 

Consumer Decision Making

Gianni versace said "That is the key of this collection, being yourself. Don't be into trends. Don't make fashion own you, but you decide what you are, what you want to express by the way you dress and the way to live." Also that his brand is stay young and sexy. He would target the internal stimulus of high middle class wives 

 Business Marketing

Versace has clearly evolve into business to business electronic commerce even having social media accounts to connect with alliance organization. 

Versace has a great success with their choice of strategic alliances like their strategic partnership with h&m for the "versace for h&m" which grossed a great amount. 

"Les pettis" for carrying their "young versace". Exposing their collection with the competition fendikids.

Versace derived demand is highly demanded overseas

 

Sales Promotion and Personal Selling

Versace has a consumer sales promotion targeting the ultimate consumer market. Versace targets their loyal customers , competitor's customer and the brand switchers from the high fashion brands like Chanel, Louis Vuitton and Prada which their current competitors.

Versace's tools of consumer sales promotion 

For the loyal customers, versace send them promo codes for 20- 35% off purchase. Promo codes are online coupons, but can be used in store with a  versace account. Also the loyal customer get personal invitations for before the sales and promotions. And offer loyal customer cardholder of versace shipping promo codes as well.

Versace's main focus is on loyal customers. They're doing a great job because just yesterday versace has made their predicted yearly income of 640 million so early in the year.

Advertising and Public Relations

Versace spend less on advertising because there big name in high fashion. Versace made a big impact in the fashion in the last 3 decades that they a lot deeply rooted consumers that spend less advertising and more quality on their products. But they currently getting institutional and product advertising from an Atlanta hip hop artist Trinidad James that's exposing versace to the minorities. Making stylish to the urban communities around the world.

Versace's major advertising media is mainly Magazines and the Internet. The Internet is clearly becoming the go to advertising media. So versace has made sure to update there website with latest website engines.

 Retailing

Versace is an independent retailer brand that has a lot of speciality store all around the world. Their terms of service is high. I had a wonderful experience at their 5th avenue store. 

It was just how they describe it on online. Great service, a sales associate greeting and having shop around the store.

 Versace is also becoming a direct and ecommerce retailing with their online shop.  The iPhone being a popular smartphone and with the apps on smartphones is a go to for retailing to consumers.

                                               GIORDANO

Giordano was founded by Jimmy Lai in 1980.3 To give his venture a more sophisticated image, Lai picked an Italian name for his retail chain. In 1981, Giordano started in Hong Kong selling casual clothes manufactured predominantly for the United States market by a Hong Kong–based manufacturer, the Comitex Group. Initially, Giordano focused on wholesale trade of high-margin merchandise under the Giordano brand in Hong Kong. In 1983, it scaled back on its wholesaler operation and started to set up its own retail shops in Hong Kong. It also began to expand its market by distributing Giordano merchandise in Taiwan through a joint venture. In 1985, it opened its first retail outlet in Singapore. However, in 1987, sales were low, and the business became unprofitable. Lai realized that the price retail chain concept was unprofitable. Under a new management team, Giordano changed its strategy. Until 1987, Giordano sold exclusively men’s casual apparel. When it realized that an increasing number of female customers were attracted to its stores, Giordano changed its positioning and started selling unisex casual apparel. It repositioned it self as a retailer of discounted casual unisex apparel with the goal of maximizing unit sales instead of margins, and sold value-for-money merchandise. Its shift in strategy was successful. Its sales almost quadrupled, from HK$712 million (US$91.28 million) in 1989 to HK$3092 million (US$396.41 million) in 1999 .

Nowdays Giordano is a retailer of casual clothes and a popular fashion brand . Giordano was operating in East-Asia,South-East Asia,Australia and middle East. Altough Giordano originates from Asia, its Brand Image has become so successful that it plans to open another 2.000 stores worldwide by 2010 in countries like India, Eastern and Weastern Europe as well as North America. Successfuly from Giordano not far from its strenghth in maintain existing markets and its plan to enter new market in Asia and beyond.

The strenght of Giordano

good quality Product and sell them at a reasonable price which will appeal to both sexes and all age, that is value for money. Giordano also have a good quality service that is proffesional ,in this matter Giordano guarantee that customer welcomed with greeting pronounciation that’s make the customer feel good about coming into store. Jimmy Lai was convinced that the product is only half of Giordano sells, Service was the other half, and Jimmy Lai believed that service that was the best way to make customers to return to Giordano again and again . emphasis on providing top services to constitute key in builds brand equity that strong where "Giordano means service" its result gets to be seen deep a lot of appreciation services already be accepted Giordano for many years. The company has developed its service quality over long period of time and has received several awards for its commitment in servicing its customer, the list of service-related awards it had received. It was ranked number one by the Far Eastern Economic Review, for being innovative in responding to customers' needs, for three consecutive years — 1994, 1995 and 1996. And when it came to winning service awards, the Giordano’s name kept cropping up.

Giordano actually understands the importance for staff services its customer in pass on pre-eminent service. A dedicated workforce in all outlet that provides quality service in order to maintain this giordano follow stringent selection procedures to make sure that only those candidates who matched the profile of what Giordano looked for and having attitude “customer first” and “can do” were selected. Giordano give well trainer for its staff and try to change its staffs become an “intrapreneur”, who not only transleted as forwarding preeminent service, but also satisfaction and loyalties staff is higher. another factor that contributed to the success of Giordano was that it had a dedicated, trained, ever-smiling sales force. It considered front-line workers to be its customer-service heroes. Charles Fung, Giordano’s Chief Operations Officer and Executive Director (South-East Asia) said, ‘Even the most sophisticated training program won’t guarantee the best customer service. People are the key. They make exceptional service possible. Training is merely a skeleton of a customer service program. It’s the people who deliver that give it form and meaning’. Selection even continued into its training workshops. Fung called the workshops ‘attitude training’. The service orientation and character of a new employee was tested in these workshops. These situations, he added, were an appropriate screening tool for ‘weeding out those made of grit and mettle’. Giordano’s philosophy of quality service could be observed in its overseas outlets as well, also been designed to motivate staff and shop team to do the best one in services customer. Performance evaluation done with often at each shop of Giordano and each employee thorough to give good customer service.

A strong brand in the market place and a clear view of what the company want to achieve also become the strength of Giordano, a position in the market place that can be taken away or minimize by other competitor for a relatively long period time. Except give good customer service. The other strength of Giordano is Excellence in management of operations, logistics and information technology .Giordno use of modern information technology to manage inventory and forecast consumer demand and that information system can be transmitted in real time to the production process. With this information, Giordano can be understand consumer buying paterns. When one item sold, barcode's information that identifies style, color and price it noted by point of sales cash register and transmitted to that main computer company. Giordano’s shop always been provided with stock that fast moving goods and its customer satisfied because Giordano rare shortage from provide goods. Information technology not a competitive strength of Giordano, on a period where so many information, organization culture at Giordano to utilize smart information that differentiates Giordano with another.

Giordano also give high quality service in comfortable location . Good site selection of strategy location provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins. There are competitive strenght that Giordano have and that is something unique that differentiates Giordano from other competitor . The excellences of Giordano’s are key success to Giordano’s

The weakness of Giordano

Above the strengths from Giordano which very impressive, Giordano also have weaknesses, as we knows Giordano sells simple dress and casual apparel for woman, man and children with the mid-price , but not everybody like to wear over simple clothes like Giordano, clothes of Giordano also less variation and stylish because over simple and monotonous.

Giordano really known as the friendliest shop service. But, unfortunately not all Giordano’s shop. All the staffs serve customers with well. Giordano really training all the staffs with well, but the key fixed on each person, not all staffs understands how to services customer with well with friendly behave to the customer. Such a things not matched with Giordano culture which is friendly and service the customer with well.

Oppurtunities

The exploitation of the brand positioning Giordano would be profitable in case in economic crisis, So Giordano could lower its liability in manufacturing clothes and use outsourching which will be cheaper, therefore it won’t need to lower quality of service in case of crisis.

Using new market outside the Asia, by exploting the most powerful migration countries of the actual costumers. In Asia , particulary in maindland China and its massive market, represent the main oppurtunity for the company. Its geographical location, gives Giordano a good knowledge of this new oppurtunity over outsiders (Hang Ten,Bossini and Baleno). As culturally close to mainland China, Managing Director may possess a good expertise of customer behaviour in this market.

The retailing environment was becoming more dynamic than before, a change that wasperhaps led by growing sophistication of tastes, and rapid advancements in the media, communications, and logistics environment. Giordano’s response to these trends would be the key to its ability to compete in the future, especially as these trends seem to ‘commoditize’ .

Many people in Asia,Australia even in America they like simple and casual clothes, sometime people love to wear simple clothes like t-shirt and jeans for shopping and having a trip and customer have little to no collective bargaining power. However customer seeking value for money can easily switch from one retailer to another, compared to customer who seek spesific apparel brands There are an oppurunities that proprietary by Giordano to reach successfully.

Threats

Until recently, Giordano’s main competitors for low-priced apparel were Hang Ten and Bossini. However, its shift in positioning, and the squeeze of the retailing sector — caused by the crisis, pushed formerly more upmarket firms. Now giordano faced the other competitor that aimed middle-up costumer like Esprit ,Gap and Theme with the same strategy. The opening market in China appeard and will appeal to an increasing multinational company (new competitor) which have the knowledge and the resource to match any advantage of Giordano. Outside of Asia, that very huge competition and well known brands such as Beneton Spa(UCB), NEXT plc and H&M.

Because of the clothes that sells in Giordano too Simple, many competitor or the factory outlet make the imitation clothes of Giordano and sell with the low price.Not only that the clothing market has really low barrier to entry, and new developed countries for all around the world could match the Giordano quality in the coming years.

Competitives rivalry is high and increasing in intensify in the casual apparel industry. This seems to be caused by lower growt rates, and the aggressive behaviour of incumbets who currently focus relatively more heavily on non-price competition. There are threats that have to anticipated with Giordano.

SEGMENTATION,TARGETING AND POSITIONING

Segmentation

Giordano is a manufacturer and retailer of clothing, based in hongkong. That produce women and men clothes. Demographic from Giordano are ages that have been segmented by Giordano to reached their target Market :

1. 2-14 years old

2. 15-45 years old

3. 15-45 years old

Group that become social grade of Giordano are lower middle class until middle class (C-B), all the status (marriage and devorce) and all religion can wear or buy this clothes the occupation can be student,college student, employee,housewife.

Targeting

Giordano has maintained a significant and consistent brand image that is regional target market can easily associate with, and it has created market share in over 30 countries in Asia,Australia and middle east.target market Giordano are Men,Women,Children and Unisex clothes from lower middle class until middle class. Giordano has developed differentiated Marketing by targeting all segments differently( different brands using to appeal those different segments. Example like for kids or children Giordano make GioKids that sells all clothes for Kids.

Positioning of Giordano

Giordano main positioning is value for Money. This was aided by a resasonable price product quality and service devotion to its customer .the value for money having understood that its will become the fact that customer are agreed to pay a particular price for a particular product that giordano offer . the tangible product receive by the customer ( example skirt and sweater) then the service package offer during the buyer experience (ever smiling,sales force ) this package forms the positioning (value for money) that offered in Giordano.

GROWTH STRATEGY THAT DONE BY GIORDANO

Giordano’s growth strategy

Strategy On the other hand, the other successful strategies of Giordano in proving excellent customer services, information system and logistics and human resource policies and practices should be implemented tactically for different markets. It means customized strategies should be developed for different countries even within Asia because there are some variations between countries in terms of their economic, cultural and social factors even the people.

As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies of scale if it operated only in Hong Kong. The key was in regional expansion. By 1999, Giordano had opened 740 stores in 23 markets, out of which, Giordano directly managed 317 stores Until 2000, four markets dominated its retail and distribution operations — Hong Kong, Taiwan, China, and Singapore Giordano cast its sights on markets beyond Asia, partially driven by its desire for growth, and partially trying to reduce its dependence on Asia, which was shown all too clearly during the crisis. In 1999 Giordano opened four outlets in Melbourne, Australia, and planned toadd 15-20 more stores by the Year 2000. The slow speed of expansion in Australia, due to problems in locating good retail space (most leases are for 4-5 years), might be overcome byacquiring chain stores there. Plans for setting up stores in Europe in October 2000 were already in the pipeline, while South Africa and South America were also under consideration. However, Giordano did not intend to enter the US market in the next 2-3 years due to keen competition. While the crisis made Giordano rethink its regional strategy, it was still determined to enter and further penetrate new Asian markets.

This determination led to the successful opening of 253 stores in Mainland China in 1999,
10 of which were directly managed by the Giordano Group. It opened three stores in Jakarta and planned to open another 12 in 2000, and might even venture into India and Japan. In contrast, it was reducing its reliance on Hong Kong by opening fewer new stores, as the pace of recovery in the Hong Kong retail sector was relatively slow compared to other Asian markets. Instead, it would utilize its cash reserves for expansion into high growth markets like China and Malaysia. Giordano’s success in these markets would depend on its understanding of these markets, and consumer tastes and preferences for fabrics, colors and advertising. In the past, Giordano relied on a consistent strategy across different countries, and elements of this successful strategy included its positioning and service strategies, information systems and logistics, and human resource policies. However, tactical implementation (e.g., promotional campaigns) was left mostly to local managers in their respective countries. A country’s performance (e.g., sales, contribution, service levels, and customer feedback) was monitored by regional headquarters (e.g., Singapore for South-East Asia), and the head office in Hong Kong. Weekly performance reports were made accessible to all managers. In recent years, it appeared that as the organization expanded beyond Asia, different strategies had to be developed for different regions or countries.

Giordano strategy consist of Product, Business and corporate Strategy:

Product strategy

Giordano sees itself as being more than just a retailer of casual apparel. It was able to successfully incorporate customer service as part of its product. Besides its brand name, logo, style and quality, excellent service has become part of the tangible products sold at Giordano stores. Customers have come to associate service excellence as an integral

component of Giordano’s merchandise. Giordano is able to provide a high level of customer service through a concerted effort, which involved every employee of the company. However, it is also essential to recognize the importance of the management and leadership’s commitment to be customer-oriented and to provide high quality service. Besides incorporating service as part of its product, Giordano focuses on the concept of value-for-money. Giordano is constantly aiming to improve the value of the product. Being customer-oriented allows Giordano to focus on what the company’s products mean to the consumer. Customers are often encouraged to request certain product adaptations if current products fail to meet their expectations. For instance, Giordano removed its logo from some shirts. Another example is Giordano’s invitation to customers to set the price of its jeans. Giordano’s other product strategy is to sell a small number of core products in its stores. While other retailers have 200-300 items, Giordano features no more than 100 variants of

17 core items. Flexibility and speed is essential in the retailing industry, especially when the fashion trend is evolving constantly. Maintaining a restricted range of core products has allowed Giordano to respond to market changes faster than its competitors, and to keep costs down.

Business Strategy.

There are three generic strategies advanced as business strategies (Porter): cost leadership, differentiation and focus, and combinations of these three pure strategies. Giordano seems to pursue a combination, a focused differentiation strategy. The primary source of differentiation comes from Giordano’s commitment to quality, in terms of the

products it sells and the service it provides to customers. This can be illustrated by its dedication to training and motivating its front-line staff as well as its no-questions asked return policy. Giordano’s strategy is focused on customer responsiveness (understanding what its customers want and putting their interests first), as well as on a specific niche – value-conscious consumers who want affordable yet trendy casual apparel with reasonable quality. However, this is done carefully to prevent a loss of existing customers who may become confused by the value proposition that Giordano provides to them. For instance, its launch of the Bluestar Exchange line clearly indicates its commitment to the existing value-for-money segment, but at the same time it is upgrading its core brand’s position so that customers may eventually perceive that Giordano stands for more than just ‘low priced’ apparel. With the successful launch of the new product line and re-launching of Giordano Ladies and Junior, Giordano appears to have overcome the main problem that niche strategies face ie. the inability to move to new niches.

Corporate Strategy

Giordano initially adopted a tapered vertical integration (backward) strategy, as it had manufacturing plants in the Philippines and Mainland China, while also sourcing from external suppliers. This was deemed necessary to allow better cost and quality control, and the strategy worked until the currency crisis hit Asia. Competition amongst suppliers (manufacturers) of good quality apparel became so intense that prices came down dramatically, and it became an opportunity cost to rely on Giordano’s own manufacturing division for supplies. There could be other reasons, such as rising operating costs, putting pressure on the firm to look for alternative sources of supply. In fact, in 1999, the Philippines plant was closed down, and Giordano is now concentrating on their core business in retailing/ distribution. This can also be evident in their allocation of investments to expand its retail outlets. this strategy is risky but consistent with Giordano’s core competency i.e. in customer responsiveness as opposed to operational efficiency.

Giordano Key Succes Factor

Giordano’s home base, Hong Kong, was flooded with retailers, both big and small. To beat the dog-eat-dog competition prevalent in Asia, especially Hong Kong, Lai felt that Giordano must have a distinctive competitive advantage. Although many retail outlets in Hong Kong competed almost exclusively on price, Lai felt differently about Giordano. Noting successful Western retailers, Lai astutely observed that there were other key factors for success. He started to benchmark Giordano against best practices practice organizations along four key areas: (1) computerization (from The Limited), (2) a tightly controlled menu (from McDonald’s), (3) frugality (from Wal-Mart), and (4) value pricing (from Marks & Spencer) (Ang 1996). The emphasis on service and the value-for-money concept had proven to be successful.

1. Giordano was excellence in design comes from the integration of many activities in the value chain; it involves intangible elements such as organizational culture; and it does not reside in any particular individual. Thus, it is more difficult for competitors to “poach” this source of advantage and overtake Giordano, as compared to simply acquiring superior technology or poaching good managers. Moreover, even if competitors were to obtain this source of advantage, it might be difficult for them to implement it as successfully, because many factors such as the type of organizational culture and leadership would vary from company to company. Nevertheless, Giordano should never rest on its laurels. Rather, it should look into new ways of improving and strengthening its advantage. One important way of doing so is to continually invest in its human resources; as Fung (former Chief Operation Officer and Executive Director, South-East Asia) rightly said, “People are the key”.

2. Excellence in management of operations, logistics and information technology

systems: this includes effective supply chain management, inventory control,

distribution, and integration of purchasing and selling functions. Cost savings

from efficient operations are transferred to customers, thus delivering “value-

for-money”.

3. Excellence in marketing and branding: strong positioning, brand equity help to build consistent customer loyalty . With positioning that helps instant transfer of key values giordano offer (Value for money, good service and good quality clothes) ,customized marketing mix and excellent brand recognition due to high advertising budget.

4. Excellence in service: continual commitment to providing excellent customer

service and response. This is the result of integration of the corporate

philosophy and leadership, service orientation of supporting functions like

human resource policies (e.g., selection, training and remuneration of frontline

staff) and information systems, and performance monitoring (e.g., regular

evaluations of service standards at store level and mystery shopping) .

5. Good site selection: Giordano’s location strategy provides a competitive

advantage because of its direct impact on ability to generate high volume

customer traffic while keeping low margins.

The good quality of service and The quality of training of the staff and the transfer of learning to the staff Giordano see its company provide to sell the service and experience.The target is make the cutomer feel to like when entering shop giordano,service giordano guarantee all customer greeted with smile, let customer to try infinite, reservasion the product within 3 day, serving marginal stitching and installing clasp free of charge and also conversion policy without boundary time which very liberal. Like slogan from Giordano that is “Giordano means service”.Giordano also guarantee staff any position getting various program of training and refreshing courses to gumming friendliness every staff with all entire activity Giordano. to guarantee each every shop and each employees give the good cutomer service, evaluate the job conducted often at shop storey level, and also each employees.

Low stock turnover , reducing year of year helped by computer aided software. With information technology (IT), Giordano was able to skillfully manage its inventory and forecast demand. When an item was sold, the barcode information, identifying size, color, style and price was recorded by the point-of-sale cash register and transmitted to the company’s main computer. At the end of each day, the information was compiled at the store level and sent to the sales department and the distribution center. The compiled sales information became the store’s order for the following day. Orders were filled during the night and were ready for delivery by early morning, ensuring that before a Giordano store opened for business, new inventory was already on the shelves. Another advantage of its IT system was that the information was disseminated to production facilities in real time. Such information allowed customers’ purchase patterns to be understood, and this provided valuable input to its manufacturing operations, resulting in less problems and costs related to slow-moving inventory. ‘If there is a slow-selling item, we will decide immediately how to sell it as quickly as possible. When the sales of an item hits a minimum momentum, we pull it out, instead of thinking of how to revitalize its slow-selling sales.’ Giordano stores were therefore well stocked with fast-moving items and customers were happy, as they were seldom out of stock of anything.

7’Ps GIORDANO

Product

Giordano International Limited Established in 1981, is a leading international retailer of men’s, women’s and children’s . by developing and identifying a marketing mix for this huge segmen will be usefull, therefor Giordano has divided this market in sub-segmen for those with different needs and different purchase habits. Thus, Giordano sell under different brand names :“Giordano”, Ms.Giordano “Giordano Ladies”, “Giordano Junior”, “Bluestar Exchange” and Giordano Concepts.

Mainstream Giordano brand focusing on quality apparel for men and women. Present in all markets in which Giordano International Limited operates. The brand's goal is to be appealing to the everyday shopper, anywhere at anytime. The brand boast seasonal exclusive and innovative casual styles in many colours. Along with seasonal lauches, the brand also gives customers access to basic and simple unisex tees and polos as well as a large range of bottoms in a variety of fabrics, including cotton, linen and denim. The brand was the company's first and consequently possesses a more extensive worldwide network of stores than any other Giordano brand. Giordano is the only international brand that is, for the time being, internationally franchised by Giordano International Limited, the other Giordano brands are all fully owned by the company. This Product that sells for woman and men . the type of clothes in giordano are very simple.

1. Trousers ( available in textile and denim material )

2. Jeans (available in long jeans and short jeans

3. Poloshirt ( full colour)

4. Plain T-shirt or colour T-shirt

5. Towel ( with colour :pink and mocca)

6. Underwear for men

7. Accesoris ( like belt and socks, this product just sells for men )

8. Cardigan (with full colour for men and woman)

9. Tank top (for woman)

10. Sweater

11. Watch (for men) 

A more upmarket brand of Giordano casual attire with a high emphasis on its own "less is more" retail approach. The brand focuses on on the idea that less is more than just more, but that is cool as well. The brand's said "less is cool" approach involves innovative and modern black, white and grey monochromes in a large variety of styles. The approach gives the brand a very upmarket causal clothes attitude, very much on par with other international brands Polo Ralph Lauren and Lacoste. The Concepts range is significantly more exclusive than mainstream Giordano, as such Giordano Concepts only extends itself to the Asia Pacific market, in particular Hong Kong, China, Taiwan and only one store in both Singapore and Malaysia. Giordano concept targeted to teenager and the youngster because the design of the product consist of cartoon picture and very attractive. Product that sell in the Giordano concept are :

1. T-shirt (white,black,grey)

2. Poloshirt

3. Tank top

4. Trousers

5. Jacket

6. cardigan

A more affordable brand of Giordano causal clothes for the budget conscious shopper. Prominent in most countries in which Giordano operates. Giordano Bluestar Exchange was rebranded by the company in early April last year. The original aim of the brand was to make Giordano more appealing to the budget conscious shopper. However, after nearly 6 months of planning last year the company revealed the new BSX brand with the opening of its first store in Lung Cheung Mall in Hong Kong. The target of the change was to make Bluestar Exchange, now BSX, into a brand more appealing to the young and to those young at heart. The brand's new direction involves simplifying everything and offering new designs and styles to give BSX an edgy and urban attitude. Giordano hired relatively new company !TH!NK to head the marketing of the new BSX with hopes that a new fresh company could provide an original out of the box approach to promoting the brand. Giordano target is to re-brand Bluestar Exchange into something that would appeal to the young and young-at-heart, and our direction is to simplify everything from design, style offering to visual merchandising to achieve a sleeker, more edgy and urban attitude for the brand. Product that sells in Bluestar Excange not far from Stylish, Casual and more full colour. As a key component of the program, we will put together a number of T-shirt collections to reflect the new BlueStar attitude. Peter is in full agreement with the direction and is giving the project a lot of personal attention and support. Product taht sells in BSX are:

t-shirt (with full colour)
colour poloshirt with line
Jeans
Trousers
Shirt
Long shirt
Accesoris (wallet,belt socks)

'Giordano Junior was founded under the same principle of Giordano, simplicity. We wanted to offer parents an easy clothing solution for their children. Giordano Junior clothes are robust, colourful and easy to care for, three pre-requisites for parents. In addition, their cost-effectiveness won't hit parents in the wallet, especially when you consider that the years between three and 14 are perhaps the biggest growth spurt children go through.' The range is designed for children at play, with a simple, sporty andfun atitude.
The clothing is available for boys and girls in Giordano Junior Indonesia offering a range of unisex clothing in the forms of jackets and jump suits. Product that Boys can choose from t-shirts, shorts, jeans, cargo pants, skaters and shirts, while girls can pick from t-shirts, shorts, jeans, skaters, tops and skirts. Giordano Junior also carries a range of accessories in the form of caps, belts, briefs, vests and tank tops.

Price

With its positioning which is value for money .price clothes that is at not giordano overestimates.oman clothes as tank top, sweater, ranging cardigan among (Rp.100. 000 - Rp179. 000). Man clothes as trousers /jeans (Rp299.000) and for shirt (Rp.199.000) see from the price , the pricing strategies and tactic that Giordano’s use is psychological because it takes advantage of the customer’s physchological desire to pay as little as possible.

                                       

                                     BURBERRY

History of Burberry

 Burberry is a luxury British fashion house established in 1856 by Thomas Burberry. Not only does it manufacture clothing, but also fragrances and fashion accessories. Burberry’s distinctive check pattern is one of the most widely copied trademarks in the world. The first Burberry store was opened in Basingstoke in 1856, and by 1870 had established itself by focusing on the development of outdoor attire. The brand is most well known for the creation of the trench coat primarily for the First World War, which became extremely popular after this. The iconic Burberry check was soon placed in the lining of the garments and sold more widely. Not only this, but the brand have also been the outfitters for explorers such as Roald Amundsen, Ernest Shackleton and George Mallory, as well as designing aviation garments and sponsoring the fastest flight to Cape Town from London in 1937.

 Burberry was an independent company until 1955 when it was taken over by great Universal Stores (GUS). In the 70s the brand was strongly associated with football firms, hooliganism and later the ‘chav’stereotype. Fake garments with the distinctive check printed on the outside were sold to the masses, giving the impression that Burberry was no longer exclusive and took away its high desirability. Since then the brand has tried to reinvent itself, with advertisements in arrange of different magazines (i.e.GQ, Esquire, Vogue, Harper’s Bazaar, etc.), and by using celebrity endorsements from Kate Moss, Agyness  Deyn, Emma Watson, Rosie Huntington-Whitely and many more. Burberry operates under 4 different brands– Burberry Porum, Burberry London, Burberry Brit and Burberry Sport, with 2 regional brands recently added (Burberry Black Label and Burberry Blue Label).

Brand Values

Burberry has always been devoted to providing high quality, long lasting garments for their customers, especially when it was first established and creating outdoor satire for various explorers. Their use of gabardine (a hardwearing, water-resistant fabric) demonstrates this, and their intent to protect their customers and ensure that they have the best quality items. When the brand first began it was also regarded as very gentlemanly, which is still the case today. In more recent times Burberry has been seen as very classic, chic and high-end. In the 70s when the brand’s unfortunate link with football hooliganism began, their name gained a negative connotation and their customers no longer wanted to be associated with them. In 2006 when Chief Executive Rose Marie Bravo retired and Angela Ahrendts took over the company, the check was placed back on the inside of the garments and British celebrity endorsement helped gain a positive view once again. Burberry value:• High quality• Desirability• Class• Exclusivity• Trust• Charity• Innocence• Devotion• Success

5. Brand Values

6. Brand Values

7. Brand Values:‘ The Foundation’

8. Brand Values: ‘The Foundation’

9. Brand Values:‘ The Foundation’

Product Life Cycle

The Product Life Cycle is based upon the biological life cycle and is made up of 4steps: introduction, growth, maturity and decline. However, the product life cycle of a brand such as Burberry is different – instead of Burberry’s products declining completely and people losing interest, they constantly develop their garments to keep a firm grip on their customers. New lines are always added – different ranges for each season appear, and have new celebrity endorsements each time. This is the development stage of the product life cycle and is what helps maintain Burberry’s success. Not only this, but classic brands like Burberry will always be around; there will always be a demand For high-end fashion and that feeling of exclusivity. Customers will even fight to purchase older stock in the sale, just to get that buzz of buying from a designer. Even older Burberry items are sought after, which proves that the brand wont just decline like an ordinary item on the market (i.e. smart phones).

Target Audience

 Despite originally being designed for men, Burberry has a female dominated target  audience; they would also have a high disposable Income. They are most likely to be around 26years old and over, with a good career and no children. However, the brand also have their own children's wear range which means that they may appeal to some parents, although these will probably be more successful business people and those from wealthy backgrounds. Burberry’s main garments such as coats and dresses have an extremely exclusive and high-end appeal. These would appeal mainly to celebrities and very wealthy customers. Next there are items such as bags and shoes – despite still being very expensive, they are more accessible and affordable than the other garments, which broadens the brand’s target audience. As well as this, the Burberry fragrances are very much in ordinary people’s price range, meaning that the brand does appeal to everyone in some way.

Pricing Strategy

 Burberry use competition pricing – the brand price their goods at a similar price to its competitors. For instance, it has a similar price range to other big labels such as Louis Vuitton. This gives a psychological effect on Burberry’s customers; if the brand had a lower price range then they may believe the quality isn’t as good as the competitors. If Burberry began lowering its prices it may leave people wondering why; if something had happened to make it lose its value. Despite it being extremely expensive, the exclusivity and high-end feel of buying something from a designer such as Burberry is what people are after. The pricing suggests quality and desirability, which is what its customers are after.

 Marketing & PR Strategy  

Burberry use more of a viral marketing approach – it is not often that you see TV advertisements or billboards promoting the brand, yet there are always banners unfashion websites (as well as print advertisements in the same magazines)which advertise Burberry. As well as this, the brand appear at fashion weeks around the world without fail, and also host their own shows to showcase newlines. This means that they are always in the press (whether that be fashion magazines, newspapers, blogs, etc.) and therefore have constant coverage. Burberry rely hugely on celebrity endorsements, and they helped the brand win back their reputation after their downfall during 1970-2000s. Faces such as Kate Moss, Agnes's Deyn and Rosie Huntington-Whitely keep the brand freehand appealing.

 Place/distribution

 Burberry own 475 stores in 48 countries, which are all located in largely populated cities where they will gain most custom. For instance, there are eleven stores in London alone. These are ideal locations due to the type of people that populate the areas; a huge number of them fall into Burberry’s target audience. By opening stores in wealthy cities, especially those which are huge tourist attractions, Burberry have the opportunity to make more profit and appeal to the right audience. If there were stores in smaller, less wealthy cities, they would probably not get as much custom, and the brand may also lose its sense of exclusivity and expense. The distribution of stores is very much psychological, and gives people all the right impressions of the brand.

Successes/failures

 Burberry's management has made smart decisions in investing in revamping its brand as well as expanding it. The company recently purchased its licensed stores in China to operate directly and further expand in the fastest growing luxury market in the world. As well as this, the idea to feature all its lines under one store concept instead of separating the different lines has helped its success. In 2012 Burberry was the first brand to hit 10 million likes on Facebook, and still remains the most liked brand on the social networking site. It has excelled in the past 3 years, despite all its troubles at the turn of the century, after its association with football hooliganism and chavs from 1970 onwards. When the brand was strongly associated with the British casual cult, football firms and violence, it saw a huge loss in profit and custom. In 2006 when new CEO Angela Arendt's stepped in, the company was rebranded entirely which kick started its success story once more.

SWOT Strengths:\

 Weaknesses: • Well established brand • Damaged name after football • High price point causing high hooliganism and association with desirability ‘chavs’ • Strong celebrity endorsements • Not accessible to the working • Distinctive check – instantly class/those who aren’t as wealthy recognizable – could also be seen as a strength (exclusivity)Opportunities: Threats:• Could open more stores • Competition from other big worldwide to broader range of brands (i.e. Louis Vuitton) cities • Threat of still being associated• Could cater for a wider age range with violence/hooliganism – (i.e. selling more products such name still has negative as fragrances which are more connotations accessible) • Not enough stores in smaller• Sponsor more events cities• More celebrity endorsements• Host more Burberry shows in different citiesz

                                                          PRADA

History Began in the early 20th century in Italy Started by Mario Prada, Muiccia Prada’sgrandfather•1st shop in the Galleria Vittorio Emanuele II 1919 Prada was appointed official supplier tothe Italian Royal Family ( which allowed themto use the coat of arms and the knotted ropeinsignia into its logo•Originally sold leathergoods, bags, luggage, jewels, crystals, as well as unusual pieces such as walking sticks•Had a home delivery service

VISUAL  MERCHANDISING 

The Main Floor Mirrors as backgrounds to the shelves on the wall, holding mainly bags Glass cases with mirrors incorporated holding wallets, clutches, scarves, and gloves Sunglasses had own rack on wall Special section dedicated to women’s shoes Mannequins displaying women’s ready to wear even on floor consisting of only accessories The three-tiered effect

Visual Merchandising

The Basement Menswear Marble staircase/glass elevator separating the clothing from shoes Velour couches used for seating Rolling racks in corners of the room next to the staircase Racks organized by formal wear to more casual wear Glass cases including messenger bags, wallets, and cardigans Special shelf dedicated to sunglasses on wall Shoes in the back area of room: dress shoes to more casual leather shoes

The Mezzanine Consisted of specialty snakeskin and bejeweled items Mainly bags, clutches, and shoes Smaller floor because less merchandise Velour couches to use for sitting Mannequins used to display clothing even though this was an accessories floor

                                                             Visual Merchandising

The Top Floor Womens wear Everything from casual dresses to formal dresses, to women’s suits, to casual and professional skirts, pants, button downs Mannequins display elegant skirts with tops and scarves on either side of partition Two pink velour couches facing each other on either side of partition Glass cases holding cardigans, clutches, scarves, and wallets

                                                         Characteristics

 Contemporary lighting, not obvious Very clean, open merchandise was easy to see Marble stair case centered, with glass elevator next to it Glass and mirrors incorporated in almost every detail  Allows the customer to see themselves with the product

                                                                   Merchandise

 Everything separated by floors, from leather goods to men’s wear to specialty goods to women’s wear The brand is self named Prada is one of the highest fashion leaders in the world

Customer Service Very helpful on the main floor and basement Relatively aloof as the floors went higher “can I help you find something?” Very busy but managed to be attentive to every customer on the main (and busiest) floor Different from the Prada boutiques back home due to increased consumer market and larger store

Image Targeted customer

 wealthy, can afford and appreciate luxury Unusual department is the mezzanine floor, since the entire floor was devoted to only 2 specialty goods, snakeskin and precious gems Unique about the boutique: mirrors used in almost every aspect Clean and simplistic while being open and sophisticated and with a good amount of product

DOLCE &  GABBANA

 HISTORY

 The Dolce & Gabbana brand was created in 1985 and has grown to become one of the top luxury goods groups in the world. Domenico Dolce and Stefano Gabbana first met in Milan in 1980 when working as assistances in an atelier. Dolce, who studied fashion design and worked for his family’s small clothing factory, grew up in a small sicilian village while Gabbana, a trained graphic designer, grew up in Milan. They went into business two years later. The first collection was launched in 1986 and the spirit of their work is Jean Paul Gaultier.

4. Domenico Dolce and Stefano Gabbana have made a trade mark of their surnames which is known throughout the world. The key of their success is the italian character and their sensual and unique style add to tailoring talent. ITALIAN STYLE

 BRAND

 A brand is a symbol that distinguishes a product made by one firm from the others. Dolce & Gabbana company’s brand is a luxury brand that means an expensive, status symbol brand.

 MULTIPLE BRAND Dolce & Gabbana company adopt a multiple brands policy to reach every business niche with a particular marketing strategy. It owns two brands:  Dolce&Gabbana  D&G

The brand Dolce&Gabbana is the dream. Its incomparable appeal is due to superior sartorial content and stylistic originality. It is a timeless style that combines innovation with mediterranean flavour

D&G brand is irony. Is a fashion label inspired by the street contemporary music for a noconventional personal style. It means freedom

 QUALITY

A luxury brand like Dolce &Gabbana is QUALITY a synonym of high quality. Many consumers prefer to buy more expensive goods because they think they are superior. Quality is strictly connected with the origin of product actually many companies like Gucci, Prada and Dolce&Gabbana too, feel that luxury comes from Europe and must be made there to be the best.

QUALITY FOR D&G

 Dolce&Gabbana company know how important the origin of the product for their consumers is. To ensure an authentic Italian style their two production facilities are located in Italy: one in Legnano and another in Val d’Arno. d’Arno

CHINESE COMPETITION

 Italian textile industry is suffering from low cost chinese goods based on low cost of labour and increasing production skills. Manufacturers feel threatened by chinese competition, whereas brand owners feel that the chinese market is an opportunity. The principle threat of chinese competition for D&G is the imitation.

D&G TARGET MARKET

 D&G target market includes people from 15 to 25, who are innovators, trendsetters and everyone who enjoys freedom and irony in fashion.

Target market structure MEN 35% WOMEN 65%

The woman She is strong; she likes herself and knows she is liked. She can be a manager, wife, mother or lover but she is always a true woman

18. The man He is a little hedonistic, free, successful and he pays attention to details. He lays down the rules imposing his personality

D&G JUNIOR TARGET MARKET

 In the last years we have seen a develop of kid labels. Till now children were a careless target market except for companies like PRENATAL or CHICCO. Now for the low profits, many luxury companies, like D&G, Blumarine and Gucci, have decided to create kid lines. To appeal children, fashion companies propose collection similar to dolls dresses like Bratz and use “little vip” like Lourdes Maria, Madonna’s daughter.

 D&G Junior is inspired to D&G brand that wears the family in every day life with style and comfort. CHICCO D&G JUNIOR GUCCI BABY MEANS Spot, advertising campaign, poster Advertising campaign, poster Photos of baby vip and gossip SUBJECTS Children with their parents Every day real life OBJECT OF ADVERTISING CAMPAIGN VALUES Comfort, health, play Children with their fashionable parents Vip Groups of kids with the sight direct to the lens Glamorous and shopping moments Style, irony, brand awareness, be a part of a group Luxury, brand awareness

21. ORGANISATION…

22. Dolce&Gabbana group consists of 239 employees, 2 production italian 2 facilities, 8 stores and 1 factory 3 1 outlets. International market operations are conducted by the New York and Tokyo subsidiaries

23. ADVERTISING…

24. Advertising is an attempt to get the right message to the right people at the right time. To consolidate their leadership is important an intensive advertising campaign through television, cinema’s spot, magazines, internet (www.dolcegabbana.it), mobile. ADVERTISING OBJECTIVES: - originality - big impact - revolution

25. ENDORSEMENT D&G communication is based on endorsement strategy They wear football players (Italy team)

26. They dress rockstars (Madonna, Elthon Jhon, Jennifer Lopez)

27. They dress actresses (Monica Bellucci; Nicole Kidman, Angelina Jolie)

28. They dress television stars (Simona Ventura, presenter of Sanremo)

29. LICENSING and BRAND STRETCHING The stretching of a brand consists of produce different kind of goods with the same logo. This strategy is realized with the licensing that means give a formal authorization to an outside supplier for using their name and image. There are a lot of examples of product realized in this way:

…watches

31. …Mobile phones

32. …knitwear and sunglasses

33. …Perfumes

34. ...cars

35. THE END