Assignment 1 Organisation Background – Korean Cloth Shop
1 Organization & Product and Services
- 1. 2 Company’s Vision and Mission
- 1. 3 Market Profile
4 Corporate Objectives
- 2. Contents
- 2. 1 Corporate Strategy
- 2. 2 Marketing Strategy
- 2. 3 Strategic linkage/relationship between corporate & marketing strategies
4 Scope of Marketing Strategy
- 3. Summary
- 4. Reference
1 Organisation & Product and Services was built by CEO Kim in the middle of Elliott Street, Auckland, New Zealand, started to build its reputation since 2003. It is a Korean fashion style cloth shop and Kim named it ‘AM’ because the word literally means ‘identity’. And now it became one of the most popular Korean cloths shop in Auckland city.
‘Am’ mainly sells Korean style fashion cloths in Auckland. However, they started to extent their range of products handling accessories such as bags, hats and shoesrecently.The range of their products is now targeting teenage groups and up to age of 30’smen and women who are interested in wearing fashionable cloths. The ownership belongs to CEO Kim and below theCEO, there is three Chinese staffs composited of one duty manager and 2 staffs who are operating the shop from 10:00am to 7:00pm. ‘Am’ does not have other franchise or partnership in Auckland however; they sell brand clothes and accessories from directly imported from Korea market. ‘Am’ values the quality of product and providing fashionable wearing in Auckland.
It pays huge attention to the new fashion trends and trying to get high quality cloths from branding cloth companies with great reputation from Korea.
1. 2 Vision and Mission
Vision According to Strategic Management-competitiveness and globalisation, (Hanson, Hitt, Ireland and Hoskisson, 2011, page 18) vision is “A picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve”.
It basically means that when a company has clear and good vision, the company is more likely to focus on achieving its goals. The vision of ‘Am’ is simple which is, To become a leader of fashion trend and introducing Korean fashion in NZ market. ” Mission Below the vision, missions specify the business in which the firm intends to compete and the customers it intends to serve (Hanson, Hitt, Ireland and Hoskisson, 2011, page 18-19). In other words, they are bundles of objectives to achieve their vision.
The Missions of ‘Am’ are; -To build cooperative relationships between the suppliers and the company. – To introduce Korean trends to young groups in NZ market. -To continue to develop markets and extend the company throughout NZ.
1. 3 Market profile
According to statistics NZ, Asian ethnic group was New Zealand’s fourth largest major ethnic group after European, Maori, and Other Ethnicity, totalling 354,552 people (9.
2 percent) in 2006. And Two-thirds of people (66. 1 percent or 234,222 people) who identified with one or more Asian ethnic group(s) usually lived in the Auckland Region(Statistics NZ, 2006). As you can see from the chart, there was huge change of number of Korean in NZ. Chinese were always number one group in NZ and both Chinese and Korean know well each other in culture, therefore the main target markets are Chinese and Koreans. lt;Source from Statistics NZ Census 2006;
1. 4 Corporate Objectives
According to Jim Riley, Corporate objectives are statements of specific outcomes that the firms want to achieve in relation of business as a whole.
(Tutor2u, 2012) The corporate objectives are similar to those missions of ‘Am’. -To increase sales by selling Korean fashion cloths through the Auckland market. – To increase the reputation of ‘Am’ among young international group and become as a representative brand in NZ market.
1 Corporate Strategy
Corporate strategy is the overall scope and direction of a company to achieve goals. (Business Dictionary, 2013) Stabilize the current position and build higher reputation in Auckland Market Make profit and survive in the market Hire more employees and extend the size of the shop 2003 2005 2007 Become a leading company in fashion industry in Auckland 2009
2. 2 Marketing Strategy
Product Am’s products are composited of four main brands; ‘CC Collect’, ‘EnC’, ‘96ny’ and ‘Top girl’ which are famous brand among 20~30 aged woman in Korean market.These brands guarantee high quality and great fashion sense of cloths.
For women, ‘Am’ provides -Skirt -Mink Coat -Jackets -Shirt -Shoes -Jeans -Skinny pants -One piece -Accessories (Hats, necklace and etc. ) For Men, -Pants -Jackets -Shoes -Shirts -Belts Distribution The distribution system of ‘Am’ is very distinctive compared to other shops in Auckland. Unlike other shops in Auckland clothing shops, the CEO of ‘Am’ Kim, goes to Korea four times a year to look at the products and visits four brands shops in the market.Whenever Kim visits Korea, he looks around at the trends of fashion air in market and analyzes it by running through the market and chooses his own products to sell with his 20 years of experience. If he finds the products among four brands which he think they have competiveness in market, he orders the products and sends them directly from Korea to Auckland. By the time when Kim comes back from Korea, within 1 or 2 week, products he ordered arrive to his shop and after that, staffs display them and sell the products to customers in the market.Look at the Market in Korea Order the products v Receive the Products Display the Products Sells the Products Choose the products Place ‘Am’ is located at Crown plaza, middle of Elliot Street where most of young generation groups of people visit to shop for clothing accessories in Auckland.
Target Market As mentioned above, ‘The Asian ethnic group was New Zealand’s fourth largest major ethnic group after European, Maori, and Other Ethnicity, totaling 354,552 people (9. 2 percent) in 2006.And according to Statistics New Zealand, there was a high proportion of young adults in the Asian ethnic group, with 3 in 10 people (31. 0 percent) aged between 15 and 29 years. Am’ aims young Chinese and Korean men and women who are aged between 18~30 in Auckland. However, if we look at the chart below, most of the main customers who visit ‘Am’ are Chinese by 80% followed by Koreans 15 percent.
3 Strategic Linkage
According to statistics NZ Reference http://www. tutor2u. net/business/strategy/objectives. htm