MKTG2001 Brand Management

Singapore Campus
Trimester 3A, 2015

Individual Assignment Cover Sheet:

Name of Student Joe Satria Sohar Karon Pohan

Student Number 17805506
Centre Singapore

Please attach this form as the cover sheet of your assignment during submission.

Max Marks Marks Awarded

A clear overview and background information about the
30
brand
Identification of relevant strategies (related to Brand
Management concepts and theories) that the brand has 10
undertaken
Good understanding and application of Brand
Management concepts and theories
40
Provide strong justification and arguments based on
Brand Management concepts and theories
Academic references, referencing style
15
Minimum of 5 ACADEMIC REFERENCES
Formatting, structure, grammar, spelling, formatting and
5
presentation of the case study
Total Marks 100

Please ensure that your case study via TURNITIN link. Late penalties apply.
 PARCO CO.LTD

THE BRAND REINFORCEMENT OF

PARCO CO.LTD

Joe Satria Sohar Karon Pohan – 1780550

1. Introduction

Parco name means “park” in

Italian (Parco n.d). Parco is retailer
store from Japan, which established
at 1953 (Parco History n.d). Parco is
operating in several categories,
which are foods, cosmetics,
watches, eyeglasses, and personal
items. Additionally 28 February
2015 Parco Company employed
directly 629 peoples and the
employees that have contract with
Parco approximately 2000 peoples and the net sales for the year 2014 is
¥268.889 million yen (Parco about n.d). At November 1995 Parco
Company opened branch in Singapore and keep increasing their branch in
Singapore. When Parco expand their business in Singapore, the first mall
that using a glass covered and air-conditioned shopping street is Bugis
street and after that Parco opened their branch (Parco n.d). Unfortunately
Parco Singapore at bugis street only can survived until 2005. After Parco
closed at Bugis street, Parco also opened at the central clark quay at 2006
and in 2010 Parco opened in marina bay in millennia walk. However
Parco Singapore at central clark quay also cannot survive until 2009 and
at February 2014 Parco company branch at millennia walk still cannot
survive and permanently closed. Based from business times (2014) Parco
closing at millennia walk due to they didn’t achieve their goals and losing
a millions at millennia walk. After a year opened at millennia walk, they
obtain losses $8.7 millions, more over the next year the obtained $3.4
million losses.
Concept of Branding
Brand is a name,
design where people
can identify the
goods of the
company or services
and to differentiate
from the competitors
(Wood 2000). Additionally, Brand image is important part at business
when the company wanted startup their businesses in addition when the
company want to go overseas, moreover brand image is the way people
think toward the brand whether the brand image is bad or good. If they
have a good brand image in social it can increase their sales because if
customers know well about the company, definitely people will buy the
company product rather then try any other products. Brand awareness and
brand loyalty is also another factors that influence the decision of the
consumer (Malik, Ghafoor, and Iqbal 2013, 167). To increase the brand
awareness and brand loyalty is when the product or services is related to
the brand name. Another important part is advertising, because of
advertising it can determine the sales at the market place (Entenmann
2007). If the brand is well known in the market place it can be said that it
is brans recognition.
Strategy
The marketing strategy of parco Singapore is marketing mix, or
known 4p. 4p consist of Product, Place, Price, and promotion in order to
increase their profit (Jingdong and Han 2009). From the product strategy,
mostly Singaporean people did
not know the Parco Singapore
product, because they using
product that based from japan.
Thus people from Singapore
still consider to buy or not to
buy. From the Place strategy,
firstly Parco Company opened
their branch at Bugis street and
then the second one is at center
Clark Quay, and after their
opened at clark quay they
opened their branch at Marina
Bay in millennia walk which is where a lot of tourist surrounding,
therefore even though their product is not well known, they still can
survived within four until five years. Another marketing strategy is Price,
parco Singapore price is for medium to high income people, and however
the brand recognition of parco Singapore is low. The last part of
marketing strategy is promotion. Parco Singapore did well at promotion,
parco Singapore did advertising through banner, brochure, and their own
website. Right now Parco Singapore is totally closed. To increase the
brand recognition and brand loyalty the company needs to advertise their
brand globally so the people will know more, or the company can
advertise through instagram, and others social media which people will
see it everyday. If the company have a good promotion and marketing
strategy it could increase the brand recognition and brand loyalty (Malik,
Ghafoor, and Iqbal 2013, 167).

Issues
At Parco company which located at Milllenia walk there are three
floors and at the
top level they
selling a food
from Japanese
popular ramen
such as Keisuke
Tokyo,
Nantsuttei,
Saboten, Tomi
Sushi and Ma
Maison
(business times 2014). It shows the difference between parco and the
competitors, which Parco Company bring authentic Japanese food, which
is Itadakimasu. Parco company has a lot competitors such as Chabuton,
Miharu Sapporo for ramen and steaming bowl is the famous ramen to the
royal customers and another competitors is Saboten for tonkatsu lover
and there are also Mos burger which serve a Japanese taste. The issue is
comparing Parco that company from Japanese that most of people did not
know the name to other restaurant at millennia, people will go to the
restaurant that they know most. Thus parco Singapore is faced a lack of
brand recognition.
Recommendation
For the recommendation, Parco
Company better use revitalizing
brands. Revitalizing Brands is
important, where the company
wants to go down or already
failed. Normally the companies
use this strategy when they
want to make a better ways, so
the people can recognize the brand and also targets a different people.
Parco can use this strategy when planning to go overseas, especially Asia.
Company need to make something different, which symbolize their
product, change the target market, and also using a update marketing
strategy (Moe and Wilkie 1997). When Parco company is failed to go
overseas, because the target market is to high with low brand recognition,
it is better if the Parco company increase the brand recognition and after
that put the target market from low to medium income, if it success then
increase the target market from medium to high income. With this
strategy probably the people will buy the Parco product even though the
price is high, because they already know the quality of Parco Company.
Second recommendation is, now days all people is using a gadget, such as
smartphone, laptop, tablet, thus it would be easier if Parco Company do
the promotion through the media social where people always use it such
as, Instagram, Twitter, Facebook, Whatsapp, Line, google, youtube, or
spotify. From this advantages parco company can advertise their brand
easier, and each application or social media create a sponsor therefore
people will know our brand (Allen and Overy 2012).
Conclusion

In conclusion, Parco Company that based from Japan those go overseas to

Singapore unfortunately they failed. For big company that want to go
overseas they must consider the target market, the location, the product
whether it is suitable or not to the host country, and then the company
also must consider how to promote their brand. The reason Parco
Company from Japan is failed to open their branch at Singapore is
because most of Singaporean did not know that brand and they have to
pay high is they wanted to buy the brand. Thus, Parco Company can use
Revitalization strategy, which improves the strength, uniqueness in order
to increase their brand image. Additionally, Parco Company also need to
change the target market from low to medium income, people may do not
know the brand but they still can buy it because the price is affordable.
Reference List :

Allen, and Overy. The impact of social media on your business, 2012.
http://www.allenovery.com/SiteCollectionDocuments/The%20imp
act%20of%20social%20media%20on%20your%20business.pdf.

Entenmann, Blair. 2007. “The Benefits of Branding Your Product or

Service”.

Jingdong, Chen and Han Wei. 2009. “The Research on the Marketing
Strategies Theory and Empirical Based on the Product Value”.
http://www.seiofbluemountain.com/upload/product/200911/2009sc
yxhy06a6.pdf.

Malik, Muhammad Ehsan, Muhammad Mudasar Gafoor, and Hafiz

Kashif Iqbal. 2013. “Importance of Brand Awareness and Brand
Loyalty in assessing Purchase Intentions of Consumer”.
http://ijbssnet.com/journals/Vol_4_No_5_May_2013/18.pdf.

Moe, Richard, and Carter Wilkie. 1997. "REVITALIZING

BROADWAY EAST." Weaving Policy, People & Place Together.
Parco. N.d. http://www.parco.co.jp/en/about/

The Business Times. 2014. “Parco to quit Millenia Walk after losing
millions there”. http://www.businesstimes.com.sg/top-
stories/parco-to-quit-millenia-walk-after-losing-millions-there

Wood, Lisa. 2013. “Brands and brand equity: definition and

management”.
http://www.guillaumenicaise.com/wp-
content/uploads/2013/10/Brands-and-brand-equity-definition-and-
management.pdf