International Buying and Marketing

Fergul Kuzucuoglu March 13th 2013, SH China wk1

Agenda wk 1

1. General Introduction

2. International Marketing and Trading

3. Fiber/Textile Manufacturing

COURSE OUTLINES

Unit 1 Introduction

• International Trade and Marketing

• Fiber, Textile, Apparel, Retail process

• Trade blocs( WTO, NAFTA, EU, ASEAN…etc)

Unit 2 Value Chain and Positioning of companies in China

• Company organizational structure(fiber/yarn/textile) • Target customer identification and branding • Design positioning • Sales promotion • The buying calendar and seasonal phasing • Pricing policy

COURSE OUTLINES Unit 3 Fashion industry structure in China

• Range planning and product development • Job description of merchandiser and buyer • Sales and fashion trends forecasting

Unit 4 Purchasing at wholesale& buying at retail

• Supply Chain

• China’s position in Global Supply Chain

• Sales & Stores

• Retail Buying Plan/Purchasing budgets(OTB)

• Merchandise Assortment Plan

• Trade Conditions

Unit 5 Summary and Evaluation

• Evaluation of each team retail buying and marketing plans( details will be later)

What is the definition of marketing?

Casual Definition of Marketing

Academic Definition of Marketing

History of Marketing

• International trade is the exchange of goods and services between countries.

• Gives opportunity to consumers and countries to reach goods and services which are not available in their own countries. ( export- import)

• If a country cannot efficiently produce an item, it can obtain the item by trading with another country. Also helps existing suppliers to compete efficiently.

• Foreign Direct Investment will easily flow into countries which will create job, purchasing power in the population.

International Marketing

• Multinational marketing applies for a number of very large companies. Their headquarter, production plants and sales should be spread in different locations in the world.

• International marketing is the term used to describe all activities within international area. Generally if overseas sales is more than 25-30% of total turnover , this term applies.

International Buying&Marketing

International Marketing -Retailing

Identify business area

(knowing products)

i.e. home furnishing

products range

Identify industry

(knowing our customers

in stores)i.e. retailing

How to purchase to get

lower retail

price?(knowing correct

production country)

Ranges/products

Sales/store Purchasing/supplier

Result Paradox in Retailing Companies

Organization Showing result

Purchasing 2%

Range 1%

Distribution 2%

Retail 95%

Total 100%

Influence result

35%

35%

15%

15%

100%

Purchasing & Range

Retail/Sales

High leverage

point

The Marketing Mix and the 4Ps

•Price

•Product

•Place

•Promotion

How might the marketing mix come into play in the marketing of Vero

Moda in the world?

Launched in 1989 in Denmark Womenswear 800 stores worldwide Smart casual styling

PROMOTION PLACE

PRICE

PRODUCT

How about the marketing mix in China for Vero Moda ?

Trendy Brand

Launched in 2001 in China Womenswear 1.713 stores in China Fancy smart casual styling

PROMOTION PLACE

PRICE

PRODUCT

Marketing Channels