GIORDANO

Positioning for International Expansion

Group 12 Satyendra Shukla (11P224) Shivam Arora (11P228) Sugandha Gupta (11P230) Suvashish Banerjee (11P232)

Overview
Giordano, International Limited is a Hong Kong retailer of men's, women's and children's quality apparel Vision:To be the best and the biggest world brand in the apparel retailing. Giordanos mission: To provide value for money merchandise Founded by Jimmy Lai in 1980

After 1987 it repositioned itself as a retailer

of unisex apparel

Major Issues
As it looks to the future, a successful Asian retailer of casual apparel must decide whether to maintain its existing positioning strategy or not? What factors will be critical to success? Whether the firm's competitive strengths are readily transferable to new international markets?

Management of the Company

Management Values and Styles

Lais Management Philosophy

Innovation
Feel good factor Emphasis on people Recruitment :Attitude training Working on Store Training

Employee treated as an assets Spent heavily on training-average 224 hours Paid high wages to employees Flat organizational structure

Giordanos product, business and corporate strategies

Product Strategy

Unisex Apparel Value for Money products Customer Service Customer asked to set price for jeans

Corporate Strategy
Vertical Integration manufacturing unit in China and Philippines In 1999, Philippines factory shut down and focus on core business of retailing/ distribution Started investing in opening retail outlets in different parts of the world

Business Strategy

Creative Advertising and Promotion Differentiation Focus: Customer Responsiveness, Value for money

Giordanos Current Positioning

Value for Money Quality Merchandise at affordable prices Gio Ladies: Mid Price Positioning Tried to reposition Gio Ladies in 1999 Bluestar Exchange: Budget Conscious Customer

Giordanos Competition
Firms Giordano Gap Espirit Bossini Baleno Hang Ten Positioning Value for Money-Mid Priced, Trendy Fashion Value for Money-Mid Priced, Trendy Fashion More upmarket than Giordano, trendy, stylish Value for money Value for money, trendy, young Value for money, Sporty Lifestyle Target Unisex casual wear for all ages Unisex casual wear for all ages Mainly for ladies, specialized lines for children and me n Unisex, casual, young and old Unisex Appeal, Young Adults Casual and sports wear, teens and young adult

Giordanos Competitive Advantage

Value Pricing

Frugality

Benchmarked Best Practices

Computeriz ation

Tightly Controlled Menu

Strengths

Simplicity and speed Empowerment of line managers Flat Structure Fast and close communication and co ordination Efficient project management Speedy decision making Dynamic capabilities Short product development life cycle Creative Customer focused promotions Efficient IT and Inventory Management Focus on superior customer service Value Delivery Price Convenience Fast Delivery

Giordanos Key Success Factors

Recommendations
Concentrate on the similarities between countries. Careful to consider national and cultural differences in some aspects of its marketing mix Even the most sophisticated training program wont guarantee the best customer service Giordano managed to deliver a high level of service Difficult to make different strategies for different market Costly to acquire existing brand or setup new brand. So same positioning for all countries to avoid creating confusion

Thank You!