Giordano- Black Banana

8/20/2019 Giordano- Black Banana

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12/21/2015 CASE 5: Giordano:

Positioning for

International

ExpansionService Marketing – Prof Faye J. Kao

HIROMU OKADA RA6047358

LIZA WIDJAJA RA6047405

NGUYEN THI LIEN (LUCY)

RA6047413

KEZIA SARAH ABEDNEGO

RA6047439

ROBERT YANG RA7031106


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1. Describe and evaluate Giordano’s product, business and corporate strategies

Products

Giordano has 5 company brands that are Giordano, Giordano Concepts, Giordano Ladies (A

line smart blouses, dress pants, and skirts targeted to executive women and office ladies,

dressier), Giordano Junior (A Giordano launched for kids), and Blue Star Exchange (A

casual clothing line for the price conscious customer). At the first time, Giordano sold men’s

casual apparel but when Lai realize that an increasing number of women increase, Giordano

made unisex apparel.

Business and Corporate Strategies

Business level strategies is an integrated and coordinated set of commitments and actions the

firm uses to gain a competitive advantage by exploiting core competencies in specific

product markets. Business level strategy indicates the choices the firm has made about how it

intends to compete in individual product markets. Giordano’s business level strategy is Focus

Strategy. Focus strategy is an integrated set of actions taken to produce goods or services that

serve the needs of a particular competitive segment. It is proved by Giordano’s limiting its

expansion and focusing on one specific area. Giordano has their own target market and focus

to sell at that area. Simplicity and focus of Giordano reflected in the way Giordano

merchandised its good. Giordano featured no more than 100 variants of 16 core items,

whereas its other competitor has more than 200 until 300 items. Giordano targeted a

particular buyer for each brand. Giordano not only has different segment of a product line but

also has a different geographic market. For example Giordano in Taiwan has coat while

Giordano in Indonesia just have jacket since the weather in those 2 countries are different.

Giordano success run its business strategy since they effectively serve a segment whose

unique needs are so special that others competitors cannot fulfill their special needs.

Corporate Strategy

Corporate level strategy that used by Giordano is Global Strategy. Global Strategy is an

international strategy in which a firm’s home office determines the strategies business units

are to use in each country or region. It is proofed by Giordano launched several promotions

such as World without Strangers in order to raise funds for the Tsunami victims and

“Strength, Explore, Listen, Believe, Imagine, and Accept”. These promotional marketing

implemented not only in Indonesian but also in other Asian Country which Giordano


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merchandized its business. In the organization itself Giordano implements decentralized

management. Also about employment it is depend on HR each country

In the overall, Giordano lain on some critical aspects such as high quality service, focus on

developing employee’s talent, reaching out customer, exploring newer markets to expand in

the global area. Giordano positioning itself as a retailer of a value-for-money merchandise.

Giordano has willingness to try new and conventional ways of doing business. The firm was

open to experiment and introduce new product ranges and design customized products for

various segments but still focus on the specific area

2. Describe and evaluate Giordano’s current positioning strategy. Should Giordano

reposition itself against its competitors in its current and new markets, and should it

have different positioning strategies for different geographic markets?

Giordano was established in Hong Kong in 1980. The first retail store opened in Hong

Kong next year. Giordano expand their market by distributing Giordano merchandise in

Taiwan by joint venture. In 1985, Giordano established first retail outlet in Singapore.

However, the growth of sales was not effectively. Because of the problem, Giordano changed

their positioning strategy to sold exclusively men’s casual clothes. After that, Jimmy Lai who

is chairman of Giordano, realized that actually number of female customers increased.

According to the consumer change, he decided that Giordano repositioned the chain as a

retailer of value-for-money merchandise, which selling discounted casual unisex clothes to

the goal of maximizing sales rather than margins. The repositioning strategy was successful.

It increased in net profits. Giordano’s positioning strategy has strength of flexibility to fit

consumer demand at each time. The business philosophy came from Lai. He managed to try

new unconventional way of playing business. At the same time, he always learned and fixed

from past errors. Also, he has belief that empowerment might minimize filature in his

business.

According to this previous positioning strategy of Giordano, they should keep the

positioning strategy of value for consumer money because it has been actually succeed. The

high consumer service also has attracted customers. Additionally, Giordano’s learning and

fixing strategy and positioning was important in the past to success. These their strategies


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must be keeping. However, to expand their business, they also need exam possible

positioning strategies for new market because different countries or markets have different

cultures. The differences affect their business.

3. What are Giordano’s key success factors and sources of competitive advantage? Are its

competitive advantages sustainable, and how would they develop in the future?

Giordano has four levels of service performance in Leader level which are the key success

factors and sources of competitive advantages. Furthermore it is defined on these table:

Marketing Function

Roles of

Marketing

Giordano has innovative leader in chosen segments, and known for

marketing skills (Giordano has a lot of marketing programs). It is proved

by Giordano has several brands related for its targeted segment. When

Giordano want to launch its new product, its uses concept testing,

observation, and use of lead customers as inputs to new-product

development. Giordano are willing to innovate their business

Competitive

Appeal

Giordano focuses on the service. In 1998 Giordano started to campaign

with the yellow badges bearing the words “Giordano Means Service. Since

company’s name synonymous with service excellence, its ability to delight

customers raises expectations to levels that competitors can’t meet.Giordano received a lot of awards related to the service

Customer

Profile

Giordano selected target market with clear segment. Its develop 5 different

brands to target different target market. Individuals are selected and

retained based on their future values of the firm, including their potential

for new service opportunities and their ability to stimulate innovation.

Service

Quality

Giordano service quality always meet or exceeds customer expectations.

Giordano launches service philosophy “we welcome unlimited try-ons; we

exchanges-no questions asked; and we serve with smile”. Because of these

philosophy, Giordano capable to raise customers expectations to new

levels and improves continuously.

Operations Function

Role of Giordano has a willingness to try new and unconventional ways of doing


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Operations business and to learn from past error. Giordano recognized for innovation,

focus, and excellence

Service

Delivery

Delivery is a seamless process organized around the customer. In Giordano

ladies, the employees were trained to know their name and their past

purchase. Employees know whom they are serving. Giordano keep speedy

operations This kept the product development cycle short. This helped in

disengaging from manufacturing and focus on retailing

Backstage

operations

Giordano closely integrated with front-stage delivery, even when

geographically far apart, understand how own role relates to overall

process of serving external customers. Giordano has inventory control so

that they can communicate to customer with know customer’s purchase

pattern

Productivity Giordano actively seeks customer involvement in productivity

improvement. It is proved when Giordano is Singapore asked the customer

what they thought would be the fairest price to charge for a pair of jeans

and charged each customer the price they were willing to pay. It

Introduction

of new

technology

Giordano work with Information Technology to facilitate the inventory

management and demand forecasting. The advantages of using IT are

customers’ purchase patterns can be understood and the information wasdisseminated to production facilities in real time.

Human Resource Function

Role Of

Human

Resource

Giordano invested heavily in employee training and has been recognized

for its commitment to training and developing staff. Giordano evaluate

their employees by mystery guest. In order to keep maintain the best

service, Giordano has strict selection procedures to make sure the

candidates selected matched the desired employee

Workforce Giordano believes that empowerment would minimize mistake-that if

every employee was allowed to contribute and participate, mistake could

be minimized. Giordano empowered line managers and at the same time

encourage fast and close communication and coordination.

Frontline Giordano emphasize on the transfer learning to the store. It such a mentors,


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Management workers to enhance career growth.

Our group stated that these factor can be sustain since Giordano make them as valuable

(value of their trained staff, their excellence service), rare, costly to imitate (for example

those information technology used by Inventory System) and no substitutable capabilities. To

develop in the future, Giordano can adjust with current development so that there will be no

core rigidities. Since Giordano implemented decentralized management it would be easier to

maintain their competitive advantage. Giordano has a willingness to innovate with its product

so that Giordano follows the trend without leave its focus.

4. Could Giordano transfer its key success factors to new markets as it expanded both in

Asia and the other parts of the world?

Basically, economical goods with good quality are the essential spirit when Giordano manage

its business in Asia and others parts of the world. However, it needs to develop different

strategies for different regions or countries. There are some reasons, first, the intercultural

difference need to be considered. Different areas have different perspective, some region is

not accept lower price, because it mean cheap and lower quality. Secondly, demography is

different, which segmentation and position need be settled. Is it developing country? Teenage

and adult, who can be afford to spend money, it need to do the detailed investigation for the

regions first. Third, need to develop the strategy according to a detailed understanding of

consumer tastes and preferences for fabrics, color and advertising for the right target customer.

Again the way to solve it is by investigation. Forth , if there is already strong competition on

site already ? How about the other brand and his reputation , if yes , Giordano is rivalry which

his competitor will choice to fight back with aggressive . Fifth , new technology can be

duplicated in the other country , for example , IT system , even in some areas or country they

are not used to use the IT system to collect information , it’s advantage that Giordano had and

what they win the marketing .

To sum up, the principle of former successful factor need to keep implemented, and then

survey the new marketing first, then make the strategies accordingly. It’s better to make

clearly analysis e.g. 5 force analysis , 7Ps to position and make business strategy .


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5. How do you think Giordano had/would have to adapt its marketing and operations

strategies and tactics when entering and penetrating your country?

Giordano would have to take the following the marketing and operations strategies and

tactics when entering and penetrating to adapt in my country:Following the marketing theory of 4Ps includes four factors: product, price, place, and

promotion. They are the tools to meet the customers’ demands.

For its products stratergy: In Vietnam, Giordano’s product suitable for people with average

and high income level. These products are divided into many segments. For example: Kids and

Adults, male and female, office fashion and street fashion. In conclusion, products have to pay

attention to difference between area’s culture, weather and climate as same as the similaries and

exploitation that one. However, Giordano must concentrate on customers’ perception and their

hobbies,…

For its price strategy, Global brand can generate brand umbrella, which speed up new

product introductions and increase the effectiveness and efficiency of advertising. As there are

common value-for-money needs, the price to value concept had been testified to be successful.

Mid-priced products make people feel good and good looking design of the products make

people look great, which is exactly its mission. In conclusion, Giordano should consistency in

service and merchandise quality,…

For its promotions, Giordano should organizes some events for customers. For example:

special sale-off, distribute voucher for customers, …. In addition, Giordano’s marketing and

operations need to be addressed separately.

For its place strategy, Giordano is located at big city where is developing area and populous.

Furthermore, Giordano should put their stores at mall, big supermarket where reserved for

people have average and high income level,…

6. What general lessons can be learned from Giordano for other major clothing retailers

in your countries?

There are several general lessons that we can learn from Giordano which are:

Giordano has target for every segment (wide range of customer). Their segment is not

just based on gender and age, but also from income (Giordano, Giordano Concepts,


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Giordano Ladies, Giordano Junior, and Blue Star Exchange). The wide range of

Giordano’s customer target can make this company reach a higher market share.

Giordano has a good sense to place their store. Giordano’s store placed in a good location

such as in retail shopping district with good foot traffic. So we have to know first which

area in our country that has high foot traffic, so the chance to attract the customer will

increase. Good place also can increase brand awareness.

Good attitude from the leader. Leader has enormous influence for the employee. If the

leader has a good attitude, the employee can make him as a role model too. A willingness

to try new and unconventional ways of doing business and to learn from past errors was

part of management philosophy and become an integral part of Giordano’s culture.

Giordano can appreciate their employee well. The appreciated and acceptance feeling can

make an exceptional service from the employee. Giordano considered frontline workers

its customer-service heroes.

Awareness about the importance of modification in training employees for different

country. This company really aware with managing its Human Resources. Giordano

know the recruitment, selection, and training local employee need modification for each

country because of the culture, education, and technology differentiation.

The good attitude from the leader, well trained (stringent selection procedures to

selecting the candidates training workshop service orientation and employees’

character test) and appreciated employee, increases Giordano’s quality of service until

this company honored by numerous service award.

Make an innovative product and service (being innovative in responding to customers’

need).

Understanding the customer well such as know the preferences of the customer, selling

goods in the low price, and make customer feel convenient.

Simplicity and focus product. Merchandising a wide range of products made it difficult to

react quickly to market changes.

Know the competitor, from their product, place, price, advertising until their target

market. So, Giordano can select their own target market and differentiate the product and

service with their competitor.

Giordano- Black Banana

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