Presented by: Cherrie Mae Favila Hoda Yahyaei

KEY FACTS
Industry: Retail Founded: Hong Kong, 1981. Founder: Jimmy Lai Headquarters:Hongkong Chairman & CEO: Peter Lau Products: Apparel Revenue: HK$ 4.95 billion (2007)[ Net income HK$ 2.36 billion (2007) Employees~ 11,000 (2007) Subsidiaries Giordano Concepts Giordano Junior Giordano Ladies Website: http://www.giordano.com.hk

I. Viewpoint
Competition is always at the side of all business. While maintaining our edge in the market we do not forget the value our customers get for the money they are spending on our products, we make sure they get the right customer service they deserve. Keeping in the competition and at the same time protecting our position in the market is a tough job we continue to deliver.

 We are committed to provide our customers with value for-money merchandise, professional customer service and comfortable shopping experience at convenient locations.

II. Time Context

The problem of this case focuses on the future of Giordano, year 2000 and onwards.

III. Statement of the Problem Main Problem: 1. What strategies can Giordano use in order to maintain its current position of being the number one leading and innovative company in Asia? Secondary Problem: 1. How does customers responds to the marketing strategies of Giordanos competitors? 2. What factors from the companys macroenvironment directly affects the competition?

IV. Statement of Objectives

1. Identify the consumer responses to the marketing strategies of their competitors. 2. Identify the macroenvironment factors that affect the companys growth or competition. 3. Craft and effective improvement plan

V. Areas of Consideration (SWOT Analysis)

Strength Giordano has an excellent pool of service staff that delivers an unparalleled good customer assistance service. Giordano has an excellent inventory control and computerization. Weaknesses Lack of strong brandmark or icon. Opportunities Asians are one of the best target customers for they not too classy in their types of clothes compared to Europeans. They can have a relatively large sales for their products. Threats Giordano faces a tough competition with other low-priced apparel.

They had no contingency plans regarding unforeseen circumstances for their inventory control center. The company lack the flexibility that some of its competitors possess. (Product development)

Piracy of apparels and trademarks.

Giordano has a good positioning of more-forless (value-for-money) strategy supported by strict cost control procedures. Giordano has an aggressive advertising and promotions strategy.

Further expansion into overseas markets. Europe and Africa also have a high potentials and growing markets. Growing demand for casual wears.

The same marketing strategies with other competitors.

Prices of products are higher compared to other competitors like Hang Ten, Bossini and Baleno.

Changing demographics of customers who have changing needs based on their culture and habits.

V. Areas of Consideration (SWOT Analysis)

Strength Giordano has an excellent pool of service staff that delivers an unparalleled good customer assistance service. Giordano has an excellent inventory control and computerization. Weaknesses Lack of strong brandmark or icon. Opportunities Asians are one of the best target customers for they not too classy in their types of clothes compared to Europeans. They can have a relatively large sales for their products. Threats Giordano faces a tough competition with other low-priced apparel.

They had no contingency plans regarding unforeseen circumstances for their inventory control center. The company lack the flexibility that some of its competitors possess. (Product development)

Piracy of apparels and trademarks.

Giordano has a good positioning of more-forless (value-for-money) strategy supported by strict cost control procedures. Giordano has an aggressive advertising and promotions strategy.

Further expansion into overseas markets. Europe and Africa also have a high potentials and growing markets. Growing demand for casual wears.

The same marketing strategies with other competitors.

Prices of products are higher compared to other competitors like Hang Ten, Bossini and Baleno.

Changing demographics of customers who have changing needs based on their culture and habits.

VI. Alternative Courses of Action

Watch out for the new trends in consumer buying behavior. Innovate and create new product. Maintain the more-for-less positioning strategy through effective cost control. Maintain the good IT integration in the companys sales and decision making.

VI. Alternative Courses of Action

Expand the target market of the company by venturing into other untapped markets of Asia or even America and Europe. Generate a new market segment. Analyze the strategy and the result of strategy that its competitors is using.

VII. Strategy Formulation

Marketing Research gather inputs from the customers who purchase the products. Survey Questionnaires and Focus Group Discussions. Marketing Information System- maintain the information gathered from every customer contacts through the help of the I.T. Department. Innovations- in terms of product variety would be an effective tool. Place- outlets should be at convenient locations for customers easy access. Promos and Customer Loyalty Programs- it can help to retain and attract customers.

VIII. Action Plans

Marketing/Sales Department Tie-up with fashion magazines. Be alert with different marketing offers of the competitor. Initiate a survey to the customers to determine their current trends and fashions. Human Resources Department Continue to hire and train high-caliber service staff for the company. Accounting Department Report all sources of major costs and expenses of the company as well as some recommendations to resolve it. Information Technology Department Create an interactive website for the consumers. Top Management

Seek advice from marketing experts, business analysts and other professionals.

The company must train service staff in doing personalized service like calling regular guests by their names, noting down preferences. Train the service staff in providing a more relaxed environment in the stores. Encourage service staff to engage in a informal conversation with the guests about fashion offered by the brand.

Gather information about the customers taste and preferences in fashion.

Maintain a good company image.

Embark a more aggressive promotion to upper-class clientele by joining Fashion Week. Maintain an excellent level of customer service at all times.

Come up with a fan page in social networks.

Build a strong Corporate Social Responsibility.

Procure a personalized software where clients information can be stored and accessed anytime by the staff.

IX. Potential Problems

Inaccurate customer survey result may occur It may be very hard to track down the competitors moves and strategies. Competitors may procure the same software that Giordano uses for its inventory management. Competitors may have more competent staff.

X. Contingency Plans
Giordano must continue with the companys key success factors: Excellent Pricing ( Value- Based Pricing Strategy) Effective Cost Control State-of- the- art IT Aggressive Promotional Drive Differentiate the service from the other apparel retailers Use either product development or market development strategy

END OF PRESENTATION THANK YOU FOR LISTENING !