Vancl--to Be Different

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  • Topic: Marketing, Internet marketing, T-shirt
  • Pages : 9 (2768 words )
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  • Published : October 11, 2012
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| 2012|
| City University of Hong Kong
Diana. Li
ID:52830773|

[VANCL---To Be different]|
MKT5610 Marketing Strategy and Planning Case Study.|

Content

* Internet Market Background………………………………………………….2 * Introduction of VANCL………………………………………………..………2 * Background of Case Study………………………………………….……….....3 * Target Customers………………………………………………………..……...3 * VANCL T-shirt Segment…………………………………………………….….4 * Promotion………………………………………………………………..….…..5 1. Internet………………………………………………………………………5 1) Viral Marketing—The ”VANCL style” phenomenon………………..…5 2) Social Networking: Weibo (The Chinese Twitter)…………………...…6 * The company official account………………………………….…..7 * The CEO’s account………………………………………….……..7 * The VANCL Fans Club account………………………..……….….8 2. Co-operation with SOGOU………………………………………..……..….8 3. The Positive Force Event…………………………………….……….…..….9 * Results…………………………………………………………………...…...….9 * Challenges: Profit Loss…………………………………………………….….10 * Major Take-away……………………………………………………….……..11 * References……………………………………………………………………..11

* Internet Market Background
Every since Internet entered Chinese market, it has witnessed intensive growth through these years. Till the end of June, 2011, there are 485 billion Chinese netizens, compared to 2010, 27.7 billion more was added up. And Internet coverage rate had improved by 1.9%, ended up with 36.2% in 2011. E-commence trade scale was 766 billion in 2011, and B2B trade took up 23.5% of it with 180 billion. According to the report released by iReseach.com that B2C modal had been kept an average 5% growth every year since 2009, implied that the B2C modal would be the main trend ahead, and would require more of stock, logistics and customer service in the future on-line shopping experience. * Introduction of VANCL

VANCL was founded in Year 2007 by Nian Chen, who is also the founder of joyo.com (joyo.com was a B2C website and was later brought by Amazon with 75 million so as to expand Amazon’s China Internet market). During 5 years’ growth, VANCL, started only with its men’s shirt business, has now become the NO.1 online own label fashion retailer in terms of reputation, scale and sales generated. It now process 6 major product lines including men’s wear, women’s wear, children’s wear, shoes, accessory, and household staffs, plus, VANCL also has developed two sub-brands which are V+ and Miook. VANCL has always been dedicated in providing high-fashion experience with affordable price for young generation, and is well-known for its incredibly considerable customer service. It sales has amazingly increased from 38 million in 2007 to 2 billion in 2010,and has been rewarded as the “Business Future Star” for its 1475% growth in revenue from 2007 to 2009 by China Entrepreneur Magazine. Till last year, VANCL had generated over 8 billion in revenue. * Background of Case Study

The sales of VANCL indeed have shocked the whole Internet sales market and its CEO Mr. Chen as well. But the problem is, people then regarded VANCL more as a cheap clothes website than an actual brand. And for an original Internet company, the most important thing is the number of your customers you have in your database, the more you have, the more powerful you are in this competing market. If we may summarized the past 4 years VANCL has experienced from 2007 to 2009, the conclusion will be that this is four productive revenue-generated years by advertisements and expanding product lines, however, there is no clear identification on what is VANCL and what it stands for. This was when VANCL started to make some changes. In 2010, its star product was born: The VANCL T-shirt.

VANCL T-shirt, known as the VT, was designed by designers from all over the world, various in patterns and colors mainly focused on the meaning of different patterns conveyed. Its price ranged from the cheapest 29RMB to 159RMB top. * Target Customers

T-shirt, has always had its...
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