Saturday, March 27, 2010

giordano (international marketing final assignment)

Tugas berikut adalah tugas mengenai brand fashion yang sudah melambung namanya yaitu Giordano. Tugas ini saya kerjakan untuk memenuhi nilai final test dari mata kuliah Internatonal Marketing. Dalam tugas ini saya diberi Bacground mengenai Giordano dan beberapa pertanyaan untuk nantinya djawab, dantaranya adalah mengena SWOT, the 7 P's, serta beberapa fakotr marketing lainnya.

  1. Strengths: Giordano is a fashion brand that name us known by a lot of people, Giordano have an excellent and good services by its staff to service its customer, which also build a strength brand equity where “Giordano means service”, Giordano have good IT system where information can be spread to many production facility at real time that can possibly learn buying habit, Giordano also have inventory management, Giordano have an aggressive effort to promote and advert its brand by a creative campaign than focused on its customer, Giordano have a high quality service.

Weaknesses: Giordano only have a few shop in Europe. The advertisement from Giordano is still a few.

Opportunities: Giordano can build more shop in Europe. The advertisement and promotion of Giordano can be added in television because its advertisement is still not many in television. Giordano can held many promotion campaign like fashion show in executive places. Giordano can held an interesting event thant focused on its target market.

Threats: Nowadays Giordano facing a competition that came from retailer which has a great name brand also like Gap, Esprit, Inc, and Theme. Promotion and advertisement from Giordano and Theme is almost same that can make its customer confuse. The unstable economy situation in Asia.

  1. Segmentation: unisex, age: 17-35 years old, B-C1, C2 all religion, all nationality, student, college student, executive, marital status: single, in a relationship and married. Geographic: live in city and town. Geodemographic: studying, working, casual, love anything that simple.

Targeting: targeting to woman and man aged between 17-35 who live in city or town and love something that casual and simple. Religion is not differentiated. Having job like student, college student, executive. Targeting to social grade at B-C1, C2. Targeting to woman and man who have to studying and working.

Positioning: long exist fashion brand in the market, have a relative price, have good services, retailer’s garments seller.

  1. Giordano applied a strong and aggressive campaign to their customers on 1989 for their brand, and this campaign almost spend part of their turnover income in advertisements and promotions. One of their best campaign performances was “Simply Khakis” in 1999. The campaign was very impressive and resulted that all Giordano product sold completely within days and they have to be repeat their campaign again after two weeks. By promotions and strong advertising help in succeeded marketing their core brand and also help in introducing their sister brand as well.

Giordano also done its growth strategy as their critical success factors by watching West retailers that succeed. Giordano start to compare its with best practices organization in four key factor: First is value pricing by Marks & Spencer, Second is the accuracy by Wal-Mart, Third is menu that has a tight control by McDonald’s, and Fourth is computerized by The Limited. Giordano combined those four factors of success key with the great customer service, also promote and aggressive advertisement for push message so it can arrive to a market.

  1. Product: Giordano product is clothes, t-shirt, pants, jeans, jacket, etc. Its product benefits is that Giordano product have a good quality with a relative price. Giordano product life cycle is in mature position which means that Giordano has been exist for a long period in the market. Giordano Boston Consulting Group (BCG) is in Cash Cow position which means that Giordano have been reached a lot of profits and its product offers are established.

Price: The price of Giordano product is relative. For a price strategies and tactics Giordano use Psychological strategies for its product. And Giordano price negotiation is a sale or return where its customers can return their purchase from Giordano if they don’t feel nice about it in anytime without a limited time of a return.

Place: Place refers to the channel distribution that Giordano chooses. And the forms of channel distribution that chose by Giordano is exclusive. The placement of Giordano store is designed for high class customer. The store of Giordano also located in full citizen area and high traffic level.

Promotion: As the bridge to the consumer the marketer must be an expert communicator. He or she has 4 major tools. They are public relations, advertising, sales promotion and selling which integrated campaign. Public Relations of Giordano is doing well because as we know the name of Giordano in Public is known as a good clothes retailer. Advertising of Giordano is aggressive and creative that can help play a significant role in success markets from its core brand and the launch also introduction from its sister brand, Bluestar Exchange, Giordano Ladies, and GioKids. Sales promotion of Giordano is came by its aggressive and creative promotion, one of its promotion is “ Simply Khakis” in 1999 that push street style, basic, which mixed and matched and match with every condition. This promotion campaign was really success in Singapore where that style sells in few days after its launch and must launch again two weeks after that. Selling of Giordano is also well, its sales person can encourage its customer to make a purchase in Giordano store.

Physical Evidence: When buying, we all look at the physical evidence in a various ways. First is appearance, the appearance of Giordano store is good and exclusive, it has a clean area and an eye catching showroom. Manner of its sale’s person, cashier, and store person of Giordano is good, they are kind and warm to a customer. Promise of Giordano is also can be trusted, because its product is really are a good quality. Giordano also have a guarantee where customer can return a product anytime without a limited time. Its security is also well. Giordano have a good environment when its customer can be comfortable. Satisfaction of its customer can be getting by Giordano shopping bags that nice and strength to hold clothes.

People: Staff in Giordano is good because they have been through a tight selection for guarantee that only an applicant with a positive service thought only also “customer-first” attitude and “can-do” that match with Giordano. The service by its staff is warm and nice. Giordano also train its staff s training program and refreshment course which neared them to the whole activity of Giordano so they can understand every detail operation.

Process: Giordano use value for money pricing and control its cost in the market. This is include the accurate choose up supplier, tight cost control in many activity ( such as, every staff, include top management, only fly with economy class and not a business class, also the cost overhead endure at minimum level). In side of stock, Giordano has a plan to making strong its value-for-money positioning with provide quality clothes that even higher by implementation with Corporate Quality Programme and looks of material sources that have higher quality than supplier. They do not want increase cost of the retail without any need. With the value-for-money dimension which practiced tight cost control.

Giordano also have a control inventory and computerized system (IT) to control its stock. To minimize stock and maximize every square foot floor for many sell chances, Giordano erased storeroom in its outlet. As a change, a central distribution replaces function from a storeroom. With IT, Giordano can as smooth operate its inventory and watch any market trend, size, style, and price that write by point-of-sales cash register and transmitted to a priority computer in that company. In the end of every days, that information being calculated in outlet level and send to selling department and central distribution. Information that has been calculated into outlet order for the next days. Order is contents at night time and ready to send in the morning, so make sure that before outlet open to sells, new inventory has available in rack.

He other benefits of Giordano It system is that information can be spread to any production facility in a real time. That information may buying habit can be learned and this provide income that has a value to manufacture operation, which caused not many problem and cost that related with inventory which slow circulation.

  1. Gap, Esprit, and Theme are same producers of garments for the same segmentation and their consumers are the same. Also because of the gradual changing of Giordano positioning and the weakness in retail sector (because economy crisis in Asia that still continue) that make Giordano facing Gap, Esprit, And Theme in value for money segment.
  2. I don’t think Giordano needed to repositioning if they want to enter the new markets of USA and Canada. Giordano already have a good image in Asia, and its promotion has been reaching a success target. The positioning of Giordano is that Giordano a retailer garments seller that have a relative price, good quality, high quality of service. I think its positioning is already having a good opportunity to enter USA and Canada markets. So, the repositioning of Giordano to enter USA and Canada is not necessary.
  3. The sentence that sounds “Good afternoon Giordano” by its staff when entered a Giordano outlet is necessary I think. Because it is more pleasant to greet a customer that just enter the outlet. The atmosphere will be more warm and friendly without any tension because as we known Giordano is a branded product that has known by a lot of people. Usually people will feel awkward if they enter an outlet that has been popular and known as a branded product, so the greeting can make a customer more relax and enjoy if they visited Giordano outlet. The customer will be more relax to choose the product too. Because people loved to be treated well and by greeting a customer with the sentence who just enter its outlet, customer will feeling well and appreciated.
  4. It is common that every market has its customers and each individual customer has their own choices and sentiments. Accordingly Giordano must adapt its strategy for instance the market segments which available in Asia are different than available in USA, Canada or Europe. There will be many different culture, habit of the people in global market. For example, the people in Europe will be more free to wear a minim clothes or dress but different with the people in East, such as Indonesia that were not free to wear a clothes or dress like that. Giordano must study the market to enter an accordingly build their strategy upon that study.
  5. My recommendation to Giordano in order to maintain their position is that Giordano must always follow up the market trend available. Do not ever let the new trend and the market without Giordano study or implemented it, though with Giordano’s own touch and the trend. Do not follow up other brand or duplicate other fashions. Giordano must always stick to their “value-for-money” with an excellent services provided for their value customers. Also Giordano has to endure its services that are known as a good one service, always train its staff and never let any mistake done by its staff when they treat the customer. I think it will be better if Giordano expand their market to Europe and America because as we known that Europe and America famous with its fashion. Last is Giordano have to create more trend, more fashion, more creation in fashion industry and make Giordano the trendsetter one in Casual clothes.
  6. Bonus Question: The differences tactics and strategies took by Giordano in Indonesia compare to other markets. For example I will take Singapore as other markets in this case. The buying habit of people in here, Indonesia is less than buying habit with people in Singapore. The differences tactics and strategies took by Giordano in Indonesia compare to other markets are the market segments in Indonesia different than that in other countries. Hence Giordano took in their consideration that Indonesian market is lower in buying power than that in other countries such as Singapore. Accordingly Giordano must have been calculated their research on buying power of Indonesian consumer to reach their target. Differences with Singapore’s consumers are better income compare to Indonesians consumer income.


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