1. Describe Kira Plastinina in terms of the brand image, product, price range and consumer target market.
The brand image of Kira Plastinina is girlish, glittery, club-inspired, the products are “Russian street wear style” emphasizes denim, tops, and day and evening dresses. Plastinina has an average price point of $48 and is aimed at girls and women aged 15 to 25 who crave fashion. 2. How many stores does KP have in Russia?
KP has around 40 stores in the Russian Federation. 3. Describe how KP entered the US market in May 2008.
KP makes its U.S retail debut by opening a 3500-square-foot flagship store in Manhattan’s SoHo. 4. In terms of stores, what was the US goal by year-end 2008? by 2010?’
KP plans to open a total of 12 to 15 stores in the U.Ss by year-end 2008.
KP plans to open a minimum of 50 U.S. stores by 2010. 5. What were KP's two greatest external threats in the US? * The distressed U.S. economy and shortcomings in how the chain was operated have largely impacted on KP’s business. * The flow of merchandise, especially new styles, was weak, making it difficult for KP to compete with fast fashion retailers such as H&M, whose stores receive new shipments daily. 6. What 4 potential benefits would KP have had if it had formed a strategic alliance to enter the US? Explain how. (See "Benefits of Stragegic Alliances") * Ease of Market Entry * Shared Risk * Shared Knowledge and Expertise * Synergy and Competitive Advantage
7. For KP to enter the US market, what would have been the pro's and con's of :
a) joint venture Pro’s: shared risk, know the market better Con’s: will be distinct from its parents company
b) licensing
Pro’s: low risk
Con’s: hard to keep up the brand’s image
c) franchising
Pro’s: Ease expansion capital
Con’s: Less control over managers and a weaker core community.
d) What would