Giordano’s current positioning strategy Essay

Giordanos authoritative side scheme is value for money or fibre merchandise at low-cost prices. Thats several(predicate)iating their products comp atomic number 18 to other rivals. except they put their go different with higher(prenominal) level of service provided to customer, their sales mental faculty is dedicated, ever smiling, hearty mannered and helpful. Those spot strategies were success payable to filling a gap in the commercialise for tr terminaly, so far discernmentably priced unisex apparel, reinforcing the pose with the take into account commercializeing communications and the delivery of quality service.Giordano reposition itself against its competitors in its current and raw(a) foodstuffs The possibility of changing current post in the light of developments in the industry, curiously with respect to consumers desire for trendier fashion, as well as the increase in the numeral and strength of competitors should also be discussed. For instance, st udents could critique the firms interpretation of these trends and its accompanying decision to upgrade its image and obtain the up- scale element. Obviously, this locomote whitethorn cause problems with its current warmheartedness brand segments.This was patent from the reverse of its Giordano Ladies venture, because the pose strategy failed to differentiate the up-scale segment from the value-conscious segment. Giordano has fought hard to establish its brand institute for its value-for-money proposition, but it is also because of its established mark that Giordano can non easily change its localization. However, it can be seen that Giordano took measures to avoid the problems of brand dilution, and to overcome its apparent difficulty in moving consumers intelligence of Giordano towards a high-end positioning.For instance, it established a forward-looking product decipher, Bluestar Exchange, to cater to the needs of its live value-for-money segment and revamped the totality brand with extensive marketing communications and gave its stores a in the altogether look. Giordano initi eithery tried to pose theme International in November 1999 to carry its line of up-market ladies apparel, but its take-over bid was rejected by Themes management and stockholders. preferably of giving up entering the up-market segment, it re-launched Giordano Ladies and Giordano immature to carry a trendier line of apparel, with advance results.We may conclude that, Giordano should not endure its focus on customer operate as one of its core differentiating factors. Should it waste different positioning strategies for different markets? in that respect are possible problems with having different positioning strategies in different markets. For instance, the juvenile repulse shift towards a higher end from the current low-end value-for-money positioning in Hong Kong was not fully executed in its other markets.Customers in these markets may become unordere d as to what Giordano stands for, and this inconsistency makes effective service strategy implementation difficult, particularly as consumers are becoming increasingly fluent and travel more frequently amongst Giordanos core markets. In addition, economies of scale in apparel purchase, design and market communications may be diluted, if different strategies are resulted across markets. If this trend persisted, Giordano may dilute its brand name and maybe might weaken its competitive reinforcement in other areas as well.Probably, Giordano would do better to keep a accordant positioning, keep its management focused on its core strengths, and send a uninfected message to all its staff and customers. Giordano are slowly and gradually moved its positioning upwards to meet the rising affluence, and because the resulting desire for high end apparel, of its core target segment. As Giordano enters into new markets and expect strong and similarly positioned competitors in these mark ets (The interruption in the US, Japan and most European markets), the pressure to adopt a around different position that suits the unique market situation of a particular solid ground may increase.In this case, students could suggest that Giordano acquire another existing brand or start-up a new business entity low a different brand, with its own positioning strategy. In fact, this is illustrated by Giordanos recent venture, Bluestar Exchange, which catered to amore price-conscious, mass-market segment. However, this strategy is extremely tryy due to the costs involved in twist a new marketing strategy and brand, and students may come to the conclusion that having a consistent positioning may be the etter option even if it means competing hostile with established brands.In conclusion, a authorization strategy for Giordano could be to maintain its positioning in Hong Kong and over time slowly and gradually shift its position in its other markets slightly more up-market to fo llow its Hong Kong positioning. This strategy would have the added advantage that it would move upwards together with its core target segments, which is also developing upwards in terms of education and increasing fluid income due to most of Giordanos Asiatic markets are developing fast.We believe that in the balance, it would be better for Giordano to maintain a consistent positioning across all markets, even when Giordano decides to enter countries with entrenched competitors with similar positioning. Should these competitors be too strong, we feel that it would be better not to enter this market rather than try to establish a new brand and strategy. The main reason is that this would be expensive and high risk as less of Giordanos core strengths could be transferred to this new market, and benefits from economies of scale could not fully be reaped like in terms of manufacturing volumes, marketing and training.