CASE ON GIORDANO:POSITIONING FOR INTERNATIONAL EXPANSION

Presented by: GROUP 10

GIORDANO AT A GLANCE
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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 It was founded by Jimmy Lai in 1980 In 1985 it opened its first outlet in Singapore After 1987 it repositioned itself as a retailer of unisex apparel

PROBLEM STATEMENT

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

MANAGEMENT VALUES AND STYLES

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

Lais management philosophy Employee treated as an assets Spent heavily on training-average 224 hours Training for each employee Paid high wages to employees Flat organizational structure

Services of Giordano key strength Employee evaluation- Service star award Store evaluation- Best service shop Value for money-selection of suppliers, cost control etc Inventory control-Inventory turnover reduced to 28 days in 1999 from 58 days in 1996

Product positioning :Simple having limited items Repositioning: Stylish clothes & broadening its appeal

GIORDANO MEANS SERVICE

We welcome unlimited Try ons We exchange No questions Asked We serve with a smile Ranked no.1 for 8 consecutive years for innovation

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

STRATEGIES
Value-for-money or quality merchandise at affordable prices Gio Ladies was the product introduced Mid price positioning Bluestar exchange(BSE)-budget cautious customer

Excellence in marketing and branding: Strong positioning, Brand equity for excellent service and ability to deliver value-for-money, Consistent execution of advertising and promotion to strengthen brand image. Excellent customer service Human resource policies (e.g., selection, training and remuneration of frontline staff) Information systems, and performance monitoring (e.g., regular evaluations of service standards at store level and mystery shopping) Good site selection: Giordanos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

COMPETITORS
Main Competitors: the Gap,Espirit,Bossini,Baleno,Hang Ten Similar strategies but different markets

International expansion Established store in China, Malaysia, Singapore, Taiwan , Japan , Korea, Saudi Arabia, India, etc. Different Strategies in different market. Slowdown due to Asian crises, SARS and Iraq war. Expansion beyond Asia

FURTHER ANALYSIS

North America On February 14, 2007 Giordano finally made its leap into the North American retail market with the opening of its store in the Aberdeen Centre in Vancouver, Canada. The store carries full ranges of men's, women's and children's apparel. This location was chosen due to its large Chinese-Canadian population, many of whom come from Hong Kong.

Eastern Europe Although eastern Europe in itself belongs to a different continent all Giordano stores in the region are actually franchised through Giordano Middle-East. The company made its first European foothold with the opening of its first store on Chavchavadze Avenue in the Georgian capital of Tblisi. The company now operates several stores through out the city, including one in the neighbouring city ofBatumi. Giordano made its move to Armenia in 2004 with the opening of its store in the country's capital Yerevan. In April 2007 Giordano added Ukraine to its list of markets with the opening of its first store in the country's capital Kiev. Poland, Russia, Azerbaijan, Bulgaria and Belarus are other markets in which the company's has franchised stores.

FURTHER..
Africa Asia Pacific Central Asia Middle East North American and The Caribbean Eastern Europe

Describe and evaluate Giordanos product, business, and corporate strategies.

Value for money product. Excellent services. Focused on core items. Customer oriented.

Product strategies: Business Strategies Differentiation. Cost leadership Niche

Describe and evaluate Gioranados current positioning strategy. Should Gioranado reposition itselfagainst its competitors in its current and new markets, and should it have different positioning strategies fordifferent markets? o Current positioning. o Target up-market may create confusion. o Measures o Difficult to make different strategies for different market o Costly to acquire existing brand or setup new brand. So go with old strategies.

How do you think Giordano had/would have to adapt its marketing and operations strategies and tactics when entering and penetrating your country? 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.