Caroll: Strategies to Penetrate the Chinese Market

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TABLE OF CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION

I. Where are we?

1. Belonging to the Vivarte Group
2. The 3V’s business model
3. The value chain analysis
4. The Boston Box matrix
5. Brand positioning
6. SWOT

II. Where we want to go? The Chinese market analysis

1. General facts about China
2. PESTEL analysis
3. PORTER’s five forces
4. Competitive environment
5. The Chinese clients types

III. How we will get there? Action plan

1. Why China? Which objectives to reach?
2. The Ansoff’s matrix
3. The 4Ps

CONCLUSION

BIBLIOGRAPHY

EXECUTIVE SUMMARY

This report will look at the strategy that the clothing firm Caroll has to adopt in order to penetrate the Chinese market. In order to manage the strategic marketing plan, we will structure the paper starting with a market analysis including PESTEL analysis of the Chinese market, target marketing and competitors analyses, then we will provide with a marketing audit, and finally we will dress the strategic marketing plan using tools such as the 3 V’s, Ansoff’s matrix and marketing mix. Our recommendations will also be given at the end of this report in order to evaluate the success or not of this implementation on the fashion Chinese market.

INTRODUCTION

Caroll is nowadays a very famous french brand in the fashion world, years after years the brand asserted its position on the fashion ready to wear market. Everything started in 1963, when both Raphael Levy and Joseph Bigio founded the Caroll brand. Initially the Company name was “Les tricots de Caroll”. The real growth began in the 70’s, when the company started to become bigger and grabbed more and more market shares. Approximately 1000 retailers were selling brand’s products everywhere in France. The story was launched, the money came in and the firm has experienced strong growth throughout the 70’s. During the 80’s, the brand opened several franchise stores, launched a real range of accessories, and finally entered the stock market in 1984 under the name “Caroll International”. In 1988, the Vivarte group (ex André) started to be interested in this company, and from that day it became a subsidiary if the group. Since the belonging to the group, the fashion house had completely changed his positioning and also created “Caroll Paris”, a brand with new strategies, such as: * Completely change the network distribution in France

* Change the brand image
* Appear as a major firm in the sector
* Increase market shares

Once the network was fully developed in France, Caroll directed its expansion into an international market by multiplying its shops, affiliations, franchises and locations in department stores across the world (e.g. Spain, Switzerland, Belgium, Germany, UK, and Japan). Thanks to this expansion, the brand owns more than 100 stores out of the approximate 400 they have in France.

Finally, in years 2000, Caroll democratized luxury, and emphasizes on its product and service quality. This quality and also the shops’ design and layout have been the key of the brand success, since it gave an impression of refinement and contributed to customers’ loyalty.

Following this successful path, Caroll is known nowadays as a leader in clothing, shoes and accessories among French firms. As it was mentioned earlier in this introduction, Caroll was firstly a real French company with a great notoriety in the hexagon. Thanks to this notoriety, the brand was exported internationally in several countries around the world because time is at globalization and doing business internationally. Nevertheless, Caroll is not yet present in the actual fastest growing country, which is China belonging to the BRIC. China is about to become the world’s first economy and shows a growth rate higher than many Western countries. Investing in China is becoming a trend for French corporations; some have even already settled their...
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