GLOBAL MARKETING

PROJECT

ENTRY OF
INTO SCOTLAND
Introduction
Silk and cashmere are luxury natural fibers which has always been in fashion
since ancient times.
is a Turkish company which specializes in pure cashmere, pure silk
and their blended products.
Scotland has been one of the leading cashmere producers since the 18th century
and cashmere is one of the national products for the country together with
whiskey (Scotch).
UK is a big market supplied from Scotland and is the right portal for the global
market due to the popularity of the country.
The company targets to have a big step towards globalization by a successful
entry into Scotland market followed by whole UK market.
Brand Story
Established in 1992, Silk and Cashmere is the only brand in
the world that strictly specializes in the finest pure cashmere,
pure silk and their blended products for both men and
women.
With close to two hundred prime locations worldwide, Silk
and Cashmere’s exceptionally high-quality cashmere
collection is by far the largest of its kind.
Designed by a team of international designers, the vast
collection includes menswear, womenswear, accessories,
babywear, petwear, thermalwear, and home goods.
Silk and Cashmere presents the luxuries of both to its
customers around the world.
What is CASHMERE
Cashmere, is a fiber obtained from cashmere goats and is
fine in texture, strong, light and soft. It is softer than wool
and provides perfect insulation.
Cashmere has always been in fashion since ancient times.
Like silk, the finest cashmere in the world comes from Inner
Mongolia, where the high altitude and harsh climate enables
the goats there to grow the finest and softest fiber. As a
result, there is very little cashmere produced each year
(1/100th of wool and 1/5000th of the cotton)
It would take 4 to 5 years for a single goat to produce enough
cashmere for a regular sweater.
What is SILK
Silk is a natural protein fiber produced from the cocoons
of the larvae of the mulberry silkworm.
Silk is even more ancient than cashmere with the first
production around 2700 B.C. in China.
In 139 BC, the world’s longest trade route, “The Silk
Road”, was opened, stretching from Eastern China to the
Mediterranean Sea and it was named after its most
valuable commodity. It is through this route that Silk
manufacturing eventually reached Europe and America.
 
Target Country : SCOTLAND
Part of the United Kingdom and covers the northern third
of the island of Great Britain.
Has the largest oil reserves (North Sea) in the EU.
A developed country with 5.3 Million population, 245
billion US$ GDP and 46.000 USD GDP per capita.
Kingdom of Scotland was independent till 1707 before
becoming a part of the UK. The Scottish Parliament and
the government has full authority over many areas of
home affairs.
An independence referendum held on 2014 rejected
independence.
 
WHY SCOTLAND?
The answer: WEATHER, PURCHASING POWER AND THE PRODUCT AWARENESS

“There's no such thing as bad weather, only the wrong clothes”, Old Scottish
saying
Country Analysis-PESTEL
POLITICAL :
Strong democratic setup and effective governance
Strong position in global politics (Member of UN Security
Council)
Improved prospect of stability with the rejection of
independence in Scotland referendum in 2014
Scotland expected to continue to be part of UK for at
least the medium term
Country Analysis-PESTEL
ECONOMIC:
Highly developed economy and favorable investment climate
Excellent environment for doing business
Scottish economic performance is very close to UK
◦ In 2014 Scotland GDP growth was 2.7% whereas UK was 2.8 %.
◦ GDP per capita USD 45.904 for Scotland, USD 45.653 for UK
◦ Low unemployment rate 6.4 % for Scotland, 6.8% for UK (2014)

Scotland uses Scottish pound which is backed up by Bank of England

and equals in value to British pound.
Oil and gas revenue from North Sea fields is a major income for
Scottish economy. Aberdeen is the oil city of Europe.
Country Analysis-PESTEL
SOCIAL:
Residents of the Scotland enjoy a high standard of living.
Decades of solid economic growth have helped in the development
of robust social infrastructure.
The education and healthcare delivery systems rank among the best
in the world.
The government is focused on alleviating income inequality and
plans to eradicate child poverty by 2020.
The problem of an aging population is expected to be off-set with
migration of young population from other countries with single
European labor market.
Country Analysis-PESTEL
TECHNOLOGICAL:
The UK is at the forefront of research and development
and innovation.
The Royal Society, which is the national academy of
science in the UK and the Commonwealth, is the most
prestigious source of innovation in the UK. The Royal
Society was set up in 1660, and in since 1850, has been
the beneficiary of government support
Effective intellectual property rights system is in force.

Dolly, first animal to be cloned

University of Edinburgh
Country Analysis-PESTEL
ENVIRONMENTAL:
The government adopted the Climate Change Act 2008,
which made it the first country in the world to have a
legally binding long-term framework to cut carbon
emissions.
The government has set an overall target of an 80%
reduction in emission of pollutants from 1990 levels by
2050.
The future energy policies of the government will focus
on both reducing energy bills and carbon emissions.
Country Analysis-PESTEL
LEGAL:
The judicial is considered to be among the most fair and
transparent in the world.
Scotland and Northern Ireland each use a different legal
system to that employed in England and Wales, but both
are based on the same fundamentals.
The laws are largely conducive to the business
environment.
Corporate income tax rate : 23 %
PORTER’S FIVE FORCES
ANALYSIS
Threat of New Entrants : (LOW)
Even though there are no barriers to
entry, there are very well established
domestic brands in the market going
back to 18th century.
The cashmere products are an item
of national proud for the citizens. The
kilts and socks produced from
cashmere are the traditional
costume.
 PORTER’S FIVE FORCES
ANALYSIS
Threat of Substitutes (LOW):
Cashmere is a luxurious very high quality natural
material.
The wool is the only potential substitute but it is much
more tougher and insulation level is quite lower.
The blend of silk and cashmere makes the product more
unique. It is even more softer and finer with no potential
substitute.
 PORTER’S FIVE FORCES
ANALYSIS
Bargaining Power of Suppliers (HIGH):
Cashmere is a special product with annual production
between 15.000 and 20.000 tons in the planet. It is
1/5000 of the annual cotton production.
China has become the largest producer of raw cashmere
with about 10,000 tons production. Mongolia produces
about 3,000 tons while Afghanistan, Iran, Turkey, and
other Central Asian Republics produce the rest.
With growing demand the suppliers have a high
bargaining power.
 PORTER’S FIVE FORCES
ANALYSIS
Competitor Rivalry Within the Industry (HIGH):
Concentration level is very high with few very well known
brands controlling almost 100% of the market.
It is very hard for a newcomer to enter with the same
product.
PRODUCT PORTFOLIO
Cashmere Wool & Cashmere Silk Silk & Cashmere

Womenswear Womenswear Womenswear Womenswear

Menswear Menswear Menswear Menswear

Babywear Babywear Accessories Babywear

Accessories Accessories Accessories

Home Home
 BCG MATRIX
STARS QUESTION MARKS

- Cashmere - Silk and Cashmere

- Wool and Cashmere

MARKET GROWTH
CASH COWS DOGS

- Silk
“

MARKET SHARE
 BCG MATRIX
We will enter into the market with stars, question marks
and cash cows.
As a star; cashmere and cashmere blended wool are well
known and intensely used products. These products will
provide a growing market share in a growing market.
Our aim is to build the question mark product, the silk
blended cashmeres as it is a new and higher quality
product.
Silk which is not widely used due to the weather
conditions will be the cash cow.
ANSOFF GROWTH MATRIX
Products New

“
Existing
MARKET PENETRATION PRODUCT DEVELOPMENT

Increasing
Markets
MARKET DEVELOPMENT DIVERSIFICATION Risk

New
Increasing Risk
 ANSOFF GROWTH MATRIX
We will choose market development since our
existing products will be introduced into a new
market
 SWOT ANALYSIS
STRENGTHS
Growing global reputation for design, quality and reliability
Expertise in manufacturing, design and key technologies
Unique product portfolio with pure cashmere, pure silk and
blended products
Innovative product lines which are highly popular and trend setters
Skilled and educated workforce of the company
Strict usage of top quality cashmere (“A” grade Inner Mongolian
white, pure cashmere that is universally accepted as the finest
cashmere available to mankind.)
 SWOT ANALYSIS
WEAKNESSES
Limited brand awareness in key markets
Justifying the price premium in the world market
Need to increase flexibility of labor force and
manufacturing
Dependency on raw material suppliers
Seasonal nature of cashmere products usage
 SWOT ANALYSIS
OPPORTUNITIES
Reduce seasonal nature of business by introducing silk
blended products
New business models: invest in Scotland for the whole
UK market (England, Wales and North Ireland)
Diversified sourcing strategies and customers
partnerships
 SWOT ANALYSIS
THREATS
Increasing global low cost competition
Pressure to become more efficient and reduce labor
component
Warm winters leading to loss of worldwide demand
SEGMENTATION
Geographic Demographic Behavioral Psychographic
Metropolis From 15-50 Adventurous Pay more for quality
(Edinburgh& and luxury
Glasgow)
Big cities (Aberdeen 50+ Loyal to well Buy for needs
& Dundee) established brands,
conservative
Rural areas
(Highlands etc.)
 TARGET GROUP
Young and middle aged people (15-50)
Living in Edinburgh and Glasgow
Adventurous
Paying more for quality and luxury
 
 BRAND POSITIONING
Product? Or Benefits? Or Values/Beliefs?
The cashmere is a very well established product in the
market and very well known by the customers.
The values/beliefs is not a point to focus since we have to
compete with traditional brands having a cultural value in
the society.
The positioning will focus on the benefits of the silk
blended cashmere to underline the superiority over the
pure cashmere regarding fineness, softness and
insulation.
 COMPETITIVE ADVANTAGE
Cost Leadership or Differentiation
We choose differentiation strategy rather than cost
leadership. Since cashmere is a luxury product, a low cost
strategy may harm the brand by giving a low quality
image.
Our goal is to market silk blended cashmere product for
cashmere lovers who are adventurous and want to try a
new higher quality product of cashmere.
 MODE OF ENTRY
Foreign Direct Investment or Franchising
Foreign Direct Investment due to:
- Easy entrance into the market
- Transparent regulations
- No tariffs and quotas
- Higher profit potential
- Stable economy
 MARKETING MIX
PRODUCT
Product quality is the most critical issue for a luxury
product like cashmere.
The blend of silk to cashmere further improves the
quality of the product.
The team of international designers will provide the high
fashion dimension.
The variety of the designs and frequent change of the
models will differentiate the product.
 MARKETING MIX
PRICE
Cost? or Demand? or Focus?
We will use demand strategy with a skimming price
strategy since our products are luxury and high quality
and therefore high cost products.
We will emphasize the quality by skimming price strategy.
The existing brands have raised the price to high levels $ 300
throughout the centuries. We will benefit from this price
levels by introducing our higher quality product.
 MARKETING MIX
PROMOTION
Advertising in high end magazines
Hosting a grand event (word of mouth
advertisement)
Sponsoring golf tournaments (most
popular personal sport in the country,
golf was invented by Scots)
 MARKETING MIX
PLACE (DISTRIBUTION)
Direct or Indirect
Our company will directly sell the products without any
franchise.
Unique? Selective? or Intensive?
We choose selective distribution strategy.
We will open shops in Edinburgh (capital) and Glasgow
(biggest city).
 MARKETING MIX
PROCESS
The procedures that our company uses to deliver our
offer have a role in building the brand.
-Uniformity of offering
-Service delivery
-Service consumption
 MARKETING MIX
PHYSICAL EVIDENCE
The workplace, retail presence sets an impression of the
business to our customers, suppliers and staff.
 
-Strong image of company
-Shops well designed
 MARKETING MIX
PEOPLE
Our staff or representatives.
Customer service and after-care that builds customer
loyalty.
-Customer Service-individual
-Customers profiles-Gathered information about
customer
-Customer "help-desk"-operate 7/24 hours
-After-care
THANK YOU
 REFERENCES
http://en.wikipedia.org/wiki/Cashmere_wool
http://en.wikipedia.org/wiki/Silk
http://en.wikipedia.org/wiki/Golf_in_Scotland
http://en.wikipedia.org/wiki/Scotland
http://www.airtransat.ca/en-CA/Destinations-from-Canada/Europe/Scotland
http://www.scotweb-objects.com/pdf/about_scottish_cashmere.pdf
http://www.visitscotland.com
http://
www.theguardian.com/environment/2014/dec/07/should-i-worry-about-cheap-cashmere-lucy-sie
gle
http://www.silkandcashmere.com