Giordano. Brand management

IntroductionThe primary purpose of this assignment is to discuss the marketing strategies that ‘Giordano’ did in the apparel industry and how it successfully manage to maintain its position in selling collar t-shirt in the apparel industry. Giordano is an apparel store that is owned by Giordano International Limited which the headquarter is in Hong Kong . Giordano International Limited was founded in Hong Kong in 1981 by Mr Jimmy Lai. The company has five brands that are Giordano”, “Giordano Ladies”, “Concepts One”, “Giordano Junior” and “BSX”. The first Giordano store in Malaysia was open in 1992. Market Segmentation

According to William J. Stanton, “Market segmentation in the process of dividing the total heterogeneous market for a good or service into several segments. Each of which tends to be homogeneous in all significant aspects.” (Fundamentals of Marketing, 1994) In another words, market segmentation is a technique used by all business companies to target its product to its potential customers.

It identifies the needs and wants of their targeted customers and the company will use those insights into providing products which meets the customer needs. Variables| | The Innocent Individuals| TheEnergetic Individuals| The Stress Individuals| The Established Individuals| Geographic| Region| Malaysia| Malaysia| Malaysia| Malaysia| Demographic| Age| 7-12| 13-19| 20- 30| 30-45|

| Income| Pocket money| Pocket money| RM2000 to RM 5000| Rm5000 to Rm10000| | Sex| Male| Male| Male| Male|Psychographic| Personality| Pampered and cute| Carefree and adventurous| Stylish and vain| Brand cautious and confident| Behavioral| Loyalty status| None| Medium| Strong| Very Strong | | User status| First timer| Potential| Regular| Heavy| | Usage rate| Light user| Light user| Medium user| Heavy user|

Values Sought By Customers of Giordano1) Affordable Price- The attribute “affordable price” is deem important because it enables theteenagers to be fashionable and stylish without digging too deep into their pockets as their income is in a form of pocket money received from their parents. 2) Good Quality

– When the quality of a product is good, it may be able to attract loyal customer. Transforming indifferent customers into loyal ones and establishing a long term relation with customers is critical for organizational success. (Bhardwaj, 2007) 3) Value for money

– In order to attract loyal customer, company needs to provide customer a sense of achievement when they got a good deal for themselves. 4) The interior design of the store

– Fittings room, mirror, hangers and other necessary stuffs should be provided so that customer may be able to feel satisfied and comfortable with the product before they purchase it. 5) Satisfying customer service

-Customer service is important as high quality customer service helps to create customer loyalty. Customers today are not only interested in the product they are being offered but all the additional elements of service that they receive from the greeting they receive when they enter an outlet, to the refund and help that they receive when they have a complaint about a faulty product that they have paid for.

6) Range of sizes of collar t-shirt-Sizes of S, M, L, and XL need to be provided as different people have different body sizes.

7) Range of colours of collar t-shirt- Not all customers are the same as some may prefer bright colours and some may prefer dark colours. 8) Fashionable and stylish- Most teenagers may want to stand out or show their personality not only among their friends but also the fashion world. Thus, a fashionable collar t-shirt is a must. 9) Established brand- Customer tends to buy clothes from companies that are thrust worthy for their designs and quality. 10) Special benefits given through membership-Customer may feel even more satisfied as the value of the product they bought is more worth it. Company will usually offer discount of 10% for members or giving free gifts 11) Availability of the store in most of shopping complex in Malaysia – Accessibility is important as it allows customer to obtain the product without the need to go to a specific place where the store is that may require a long travel.

Perceptual MapExpensive

Lacoste Giorgio Armani Fred Perry BOSS Emperio Armani

Younger Older Generation Generation


As seen as above Lacoste, Giorgio Armani and others are established brands that targets in the high end fashion world. However, all of it are European brands. Thus, Giordano as an Asia brand manages to feel in the gap in selling the cheap and high quality collar t-shirt so that the younger generations mainly teenagers will be able to be equally stylish and fashionable without having to spend too much.

Market Positioning“Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.”(Al Ries and Jack Trout, 1972). Basically, marketing position is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand or organization. Giordano competitors are established European brands. Giordano has created a philosophy that emphasis on value for money, basic styles, great quality and colours. Thus, its competitive advantages are by selling collar shirts in a lower price but good quality.

Giordano also believes in creating and maintaining customer satisfaction. It also has another advantage of being able to sell in Malaysia as Asians are not too classy compare to Europeans. Thus, the design of collar t- shirt sold by Giordano is simple and stylish. Giordano has also an excellent pool of service staffs that delivers good customer assistance. Giordano has also manages to establish a brand for itself by winning The American Service Excellence Award, ISO 9002 Award and People Developer Award and it is one of the leading apparel store in not only in Malaysia but also in Asia. Unlike its competitors like Lacoste, Giordano manages to maintain a long – term relationship with its customer by giving out life time card memberships.

Members are able to receive discount of 10% when they buy regular items and discount of 20% on their birthday. Giordano has even train its staff to be professional and rewards them by giving bonus. Giordano also have a controlled budget on advertising and has a good system of recording their inventory.

There will be different designs available every month and it does not produce too many of the same design collar shirt in order to prevent wastage that can increase in the cost of sales. Another competitive advantage that Giordano has that it has very few employees in a store. Thus, the cost of production will be lower and a better management on their staffs. Giordano mainly focus on a few items whose demand ad desirability can be closely monitored like the designs of collar t-shirt.

Marketing Mix

Product| -Giordano has different types of colour and sizes available in the store. The latest design of collar t-shirt that has been introduced is a lion design sew on shirt.| Price| -The price of the normal design collar t-shirt is RM 55 and the lion design collar shirt is RM60. -However, it offers a cheaper price when a customer buys two shirts in a single receipt.| Place| -There are total of 78 Giordano stores in all main shopping complexes available in Malaysia.-The opening hours are from 11am to 10pm.| Promotion|

-Giordano conducts a lot of promotion for example “The Giordano Sale” that was conducted from 5 July 2012 to 8July 2012 and “Giordano Stock Clearance Sale” that was conducted early January 2012. -Giordano gives out discount especially to members.| Physical Evidence| -Fitting rooms are provided so that customers are able to try on.-The interior design of the store is designed in such a way that customers will feel comfortable when shopping in the store. -All stores are air-conditioning.-Latest designs are display at the front of the store.Stores are clean and tidy.| Processes| -Customers are able to take their own time to shop around in the store.

-Customers are able to try on the clothes that are displayed.| People| -One of the corporate values that Giordano conducts is to provide services that exceed customer expectation by helping the customers’ need in any way as possible.-Employees are trained to be helpful and friendly.-Employees are trained to be neat and tidy| Conclusion

In conclusion, Giordano has successfully manages to establish a brand not only in Malaysia but also in Asia by emphasizing on value of money and quality when selling collar t shirt. Giordano should consider in expanding their brand into new markets like Europe since they do not have a branch there in order to fulfill their mission that is to be the best and the biggest world brand in apparel retailing.

It is also safer to expand their market as their current market may suffer from economy crisis in the future and it will affect the profits earn. Giordano should continue to create awareness in customers by improving their services, managing trained employees and budget their finance in order to survive in the apparel market.

(1510 words)

References- Author William J. Stanton, Author Michael J. Etzel and Author Bruce J. Walker , Fundamentals of Marketing (1994). Publication of McGraw Hill 10th edition – Giordano International Limited, -Wikipedia,

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