...JFMM 12,1 Attitudes toward domestic and foreign luxury brand apparel A comparison between status and non status seeking teenagers Ian Phau and Yip Siew Leng The School of Marketing, Curtin University of Technology, Perth, Australia Abstract Purpose – The purpose of the current research is to determine if status and non-status seeking Australian teenagers differ in their attitudes toward buying domestic and foreign (i.e. Italy, Japan, China) luxury brand apparel. Design/methodology/approach – A total of 365 teenagers participated in this study through a self-completed questionnaire. Fishbein’s Multi-Attribute Attitude Model was used to measure and compare attitudes toward buying domestic and foreign made apparel. Repeated measure ANOVA and t-tests were utilized to examine whether the groups differed with regards to their attitudes toward buying luxury brand apparel, using a comparison of apparels “Made in Australia” with those “Made in Italy”, “Made in Japan” and “Made in China”. Findings – The research findings indicate that status-seeking teenagers have overall, a more positive attitude toward foreign luxury brand apparel as compared to Australian luxury brands, with the exception of Chinese brands. On the other hand, non-status seeking teenagers reported that they have more positive attitude towards Australian brands than foreign brands, and consider Australian luxury brands superior to all three foreign brands with regards to ease of care and comfort. Research limitations/implications...
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...113-year old Parma, Italy–based tomato-processing company whose tagline for decades had read: “Solo pomodoro. Per passione.” (Only tomatoes. For passion.) Mutti sales grew from €11 million in 1995 to €185 million in 2011, without producing items for store brandsb in a market in which these offerings were steadily gaining share (see Exhibit 1 for Mutti’s financials). Tonnage of tomatoes processed increased from 30,000 in 1995 when Francesco had joined the management team, to 184,000 tons in 2011. From 3 managers and 16 employees in 2002, by 2012 the company had 10 managers, including one in France and one in India, and a total of 218 employees, including seasonal workers. “We achieved this growth by following different rules and developing a brand focused on quality when people said that brands were finished,” Francesco said. “We invested significantly to expand and improve our processing plant. We paid more for quality raw materials when others were starting to compromise and cut costs. We introduced TV advertising to explain why Mutti tomatoes were special. And then we stuck to the path—choosing a way and saying, ‘I don’t know if this is right or wrong, but I am going to do it.’” In December 2012, the bets continued to pay off. Mutti was Italy’s branded, premium market leader in tomato products, producing puree, concentrates, pulp, and other tomato-related items. The company’s leaders wanted to make sure Mutti maintained its position in Italy and, further, to move ...
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... Task We had four countries to compare and ultimately decide which one should be the preferred European country where Fat Face should expand to. The management team at Fat face have managed to narrow it down to Croatia, Italy, Romania and Sweden. Using Macro environmental factor we aim to narrow it down further into two countries. Finally using macro, micro and other factors we seek the most suitable option. In order for our team of consultants to determine which country to select an evaluation of the candidate countries has to be executed, which should in turn provide insight into tradeoffs that should be made, allowing justified reasons to be given for the final country selected (Beim, G and Levesque, M, 2004.) 2. Introduction - About Fat Face Marketing is - “…the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational objectives.”- Onkvist et al. It is essential that Fat Face acts better than the direct competitors and with the purpose of generating profit. Going international in itself is an enormously high cost exercise in terms of money and top management time and commitment. Therefore international expansion must generate added value not only in terms of larger sales quantities, but more. (S. Hollensen (2007)) So Fat Face needs to gain competitive advantage, by filling in a niche and using its brand image as a unique selling...
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...Date of submission : _____10/9/12______ Student’s Roll No.______A81,A82,A84_______________ Section No. : ____Q2206______________ Declaration: I declare that this assignment is my individual work. I have not copied from any other student’s work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person. Student’s Signature : _Nishant_kumar______ Evaluator’s comments: _____________________________________________________________________ Marks obtained : ___________ out of ______________________ REPORT ON CLAYTON INDUSTRIES CASE PETER ARNELL, COUNTRY MANAGER FOR ITALY OBJECTIVE The purpose of this report is to analyze the daunting challenges faced by Clayton SpA,the Italian subsidiary of US based Clayton Industries Inc. Peter Arnell has just taken charge of the Clayton SpA to turn around the current loss making status of the company losing around $1 million a month after decades of solid returns. Contents A brief introduction of Clayton Industries and their business operations............................................................................................................................ 3 Description of Proble.........................................
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...Merc. M. Sc. IBS - International Business Department of International economics and management, 15 June 2012 Strategic Analysis of the Geox Group Councellor: Bersant Hobdari, Copenhagen Business School Student name: Valeria Serra N. of pages: 79.7 Total n. of characters: 181,415 N. of characters (without figures): 165,415 N. of figures: 20 Executive Summary The purpose of this thesis is evaluating the sources of the extraordinary success of the Italian company Geox S.p.A. in order to assess whether its triumph is sustainable or not in the future. Geox S.p.A. is an Italian company based in Montebelluna (Treviso, Italy). It produces high quality and innovative shoes and apparels, and it is considered one of the most successful Italian firms. The company was born thanks to an innovative idea of its founder, Mr. Mario Moretti Polegato, and its fast growth has been due not only to the knowledge of the district, but also to its strong management and its strategies. All these factors have contributed to Geox’s fast growth in a market that was already mature. Notwithstanding Geox’s leadership position in Italy, the company is not immune from the negative effects of the economic and financial crisis and of globalization. The main challenges that the company is facing are mainly constituted by increasing and labour and raw material costs. The crisis, which has been particularly strong in Italy, has made people poorer. Thus, consumers have became more price sensitive, and some...
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...Case Analysis Report Clayton Industries: Peter Arnell, Country Manager for Italy (HBS Case # 4199) 1. Evaluate Peter Arnell’s first two months as general manager of Clayton SpA. What are the main challenges he faces? How well is he dealing with them? The biggest challenge Peter faces is the stagnant growth that Clayton SpA has experienced in recent years, especially with a 5.3% decline in 2008 and 19.4% drop in the first quarter of 2009 for Italy. This lack of sales directly affects receivables and inventory. Coupled with a strong union in Italy (FILM), these two forces directly contribute to the difficulty of fulfilling the 10/10/10 plan. Based on these trends, a “top four in four” years is unlikely unless SpA can significantly increase its European sales in the chiller market. So far, he has taken some necessary steps in understanding the situation and has made some necessary changes to prepare for a comprehensive overhaul of the division. However, he has yet to make any decisions for the long term future of the company. 2. Review the three possible courses of action outlined on the last page of the case. As Arnell, which plan would you recommend to Dan Briggs and Simonne Buis next week? What problems and constraints might limit your strategic recommendation? How could you deal with those issues? The 3 possible courses of action are as follows: 1) Continue to do what they have been doing, except better – increase efficiency, improve product...
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...INTERNATIONALISATION OF THE SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009), 13:2, 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This...
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...academic rigour of the business schools that have participated in this project. This centre presents case studies of Spanish companies that are successful internationally. These case studies can be found on the ICEX webpage and appear in a multimedia format that includes discussion forums and articles that create awareness of the key issues involved in internationalisation. The success stories chosen represent a broad sample of sectors and geographic areas and show the globalisation process that some of our companies have gone through. The company profile shown here is that of an SME multinational which has become a reference point in its sector, basing its international penetration strategies on factors as diverse as marketing, management, financial liquidity and business alliances. This pioneering project, in Europe and throughout the world, serves to promote and diffuse a comprehensive entrepreneurial culture among SMEs. It promotes the integration and association between universities and businesses, facilitates dialogue and the exchange of knowledge between experienced businesses and those that are beginning to take their first steps in international markets. It also emphasises the importance of human capital in medium and long term business competitiveness. 1 Starting point BUYVIP, THE INTERNATIONALIZATION OF A SPANISH DOT COM THE MOST INTERNATIONAL SPANISH DOT COM BUYVIP, AN EXCLUSIVE...
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...academic rigour of the business schools that have participated in this project. This centre presents case studies of Spanish companies that are successful internationally. These case studies can be found on the ICEX webpage and appear in a multimedia format that includes discussion forums and articles that create awareness of the key issues involved in internationalisation. The success stories chosen represent a broad sample of sectors and geographic areas and show the globalisation process that some of our companies have gone through. The company profile shown here is that of an SME multinational which has become a reference point in its sector, basing its international penetration strategies on factors as diverse as marketing, management, financial liquidity and business alliances. This pioneering project, in Europe and throughout the world, serves to promote and diffuse a comprehensive entrepreneurial culture among SMEs. It promotes the integration and association between universities and businesses, facilitates dialogue and the exchange of knowledge between experienced businesses and those that are beginning to take their first steps in international markets. It also emphasises the importance of human capital in medium and long term business competitiveness. 1 Starting point BUYVIP, THE INTERNATIONALIZATION OF A SPANISH DOT COM THE MOST INTERNATIONAL SPANISH DOT COM BUYVIP, AN EXCLUSIVE...
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...INTERNATIONALISATION OF THE SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009), 13:2, 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This...
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...The brand management is a special strategy that revolve around the concept of differentiation of products, target customers group and building relationship between consumers and brand. It helps to create efficient environment, good planning of the ways, in which the brand could be reliable in the market. There are numerous of brands in the world fashion industry but only some of them are luxury with high level of credibility. To escalate brands are used such elements as innovation and creativity, quality, marketing strategy and management. In the essay, one of the most popular brand will be analyzed. Armani is one of the world’s leading fashion brand. It was founded by Giorgio Armani from Italy. The brand started as “Giorgio Armani” and from the beginning, the main aim was to produce high quality of products and services for intelligent people in classic style. The words of Giorgio Armani are as a justification of his goals: “My philosophy has always been to help women and men feel comfortable and confident through the clothes they wear”. Over the years, Armani introduced few lines of this brand in order to reach another target market and other price, but still with keeping an elegant, sophisticated, and inspiring brand identity. As to speak about main keys of the Armani’s success, the first one should be following: over the last thirty years brand has continued to stay classic and current. For the fashion company it is essential prerogative, because classic fashion will...
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...of brand and country of origin (CoO) on the purchasing decision. This article extends an exploratory phase constructed from qualitative data previously gathered on this topic. The study includes administering a questionnaire online in seven countries (China, France, India, Italy, Japan, Russia, and the USA) to a total sample of 1102 respondents. The richness of this research relates to the possibility of an intercultural analysis of the results from seven countries. These results concern the differences in the relative importance of components of the consumer decision-making process in respect of the purchase of luxury and non-luxury goods; the relative importance of CoO for consumers making purchasing decisions relating to luxury goods; and the variation in consumers' decision-making criteria depending on the maturity of the luxury market. This research allows the authors to confirm, develop, and generalize results previously obtained in the exploratory phase of their work. They are interesting in terms of management recommendations for a company that wishes to expand internationally in a geographic area covered by the study, since the research found significant differences. The results of the research contribute also to the theoretical controversy concerning the importance of CoO in the consumer decision-making process. Keywords Country of origin; Luxury; International; Cross-cultural analysis; Consumer behavior 1. Introduction and objectives The effect of country of origin...
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...most of the company’s shares. On the other hand, other large companies in distilled spirits industry are consolidating through joint ventures or acquisitions. This means that these companies would soon manage to have an increasing share of the total sales in Europe. * There is a decline in consumption of alcoholic beverages in the market. * The growth in popularity of international brands threaten the local producers of alcoholic beverages in spirits industry. Problem Statement What strategies should Giovani Buton implement to develop the company into an international concern in response to the consolidation of several large companies? Objective To come up with market developments to introduce the company and its products in Western Europe in order to compete with the integrated companies, or the so-called European Community. Brief description of the case Giovanni Buton is a company that produces a range of Italian brand spirits that covered approximately 35,000 of the 300,000 spirit outlets in Italy, making its coverage one of the highest liquor distributors in Italy. In 1986, Vecchia Romagna, one of their top grossing products, had declined in sales because of the domination of wines over the brandies. The international spirits market undergo a dramatic change, companies began to gain...
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...form of communication, as well as product journalism and financial documents, should be translated into Italian by a professional, and preferably followed with an e-mail or telephone call. Also, there are business schools that can offer placements to aid with the subject of translation. Furthermore, using the Italian language in documents, such as invoices, will aid in the clarification of all intentions and eliminate confusion or misunderstanding. Market Risks (four Ps) PRICE The average cost of a cup of coffee in Italy (4.92 EU or $7 USD) is doubled the price of an average sized breakfast (2.35 EU or $3 USD). The subject of price must be paid close attention as to not be deemed as “overpriced” in a country filled with locals who know the value of a good cup of coffee. The price must be strategically set to be competitive without the potential loss of quality. PRODUCT The risk of opening a Starbucks in Italy is that Italians are big coffee drinkers. Italy has 110,000 coffee bars and the quality would have to improve %100 in order to make an impact and divert the consumer from their favorite family owned business. Solution: the product itself would have to be revamped by...
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... Swartz bought out the remaining interest in the company in 1955 and brought his sons into the business. In 1973, the Timberland brand name was introduced and the company officially changed its name to The Timberland Company. Known primarily for the waterproof leather work-boots produced by the injection-molding technology, the company has expanded to produce clothing and shoes for men, women, and children. The company also produces a line of rugged outdoor accessories as well. Timberland started expanding into the international market in 1980 when the line was introduced in Italy (Timberland, 2010). Since then Timberland has experienced periods of rapid growth and periods when the company grew more slowly, depending on the economy and more important, the mild winter weather that lowers the demand for the rugged Timberland shoes and apparel. Today the company operates in more than 90 international countries (Haapaniemi, 1998). Timberland Going Global In 1979 Timberland was approached by a businessman from Italy and asked them about selling Timberland boots in Italy. Jeffrey Swartz, Timberland’s Chief Executive Officer (CEO) thought: "Why would you take boots made in New Hampshire - these were work boots, rugged hand-sewn American-looking things - and sell them in Italy, the home of Ferragamo, Botticelli, and all those magnificent brands (Haapaniemi, 1998, Para. 2)?" After some discussions, they determined the businessman was taking the risk so Timberland signed a deal...
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