Mango globalization

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ubmitted by: bik Hirawat bhishek Sinha eegisha Panchal aran Arora achin Pratap antosh Kumar

Transcript of Mango globalization

Submitted by:Abik HirawatAbhishek SinhaJeegisha PanchalKaran AroraSachin PratapSantosh Kumar

Introduction•International Contemporary Spanish clothing chain•Established in 1984•Founder- Isak Andic•Headquarters- Barcelona•Brand Ambassador- Kate Moss•Mission- “To be present in all the cities of the world”

• More than 2500 stores in 108 countries• Collection mainly produced in China & Morocco• Turnover 1.408 billion Euros for 2011• 644 new stores in 2011, 11% growth• Collection Line- Casual Suit-evening Sport-MNG jeans

• 1984-85 – Started with 5 retail outlets and by 1988 they were 13

• In seven years the company reached 100 retails outlets in Spain

and a sales volume worth 48 million Euros.

Global Concept

fashion, design, image and good

price-quality relationship.

improve the internal system of stock

management, logistics and product distribution

National & International Growth

• 1992 - The first steps outside the Spanish market were made with the opening of two stores in Portugal

• 1997 - The volume of business generated abroad surpassed that of national business

• 2009 - It reached 76% of total volume with a turnover of 1,480 million Euros

• At Present – Now Mango is present in 100 countries with more than 1,400 retail outlets distributed throughout the world

Mango's greatest asset lies in its PEOPLE.

Mango has based its business culture on human relations, teamwork and the continuous training

Key Growth Strategies

Own LOGISTIC & SCM SYSTEM which allows it to manage, direct and take decisions throughout the complex process of design, supply, manufacture, sales and after sales in a completely automatic way.

• Reduce delivery times & streamline distribution of the product;

• Manage orders• Control quality;• Reduce infrastructure costs ; and • Be flexible and adaptable at all levels

Key Growth Strategies

All manufacturing activity takes place through third party companies, about 200 SUPPLIERS throughout the world.

New suppliers are included every season to cover technical requirements

Key Growth Strategies

Internationalization Of Mango

Stage Period Nature Way of Entry

First Stage 1992-1995 Introduction (Learning)

Franchises.

Second Stage

1996-2002 Expansion (Growth)

Franchises. Wholly-owned shops.

Third Stage 2002-2005 Consolidation Wholly-owned shops only in markets in the euro, dollar and yenzones. Franchises in markets in the euro, dollar and yen zones.

Diversification Only Franchises in all those markets outside the euro, dollar andyen zones.

Source: Based on information from MANGO.

Stages in the International Expansion Strategy by Way of Entry

KEYS TO SUCCESS

OF MANGO

• THE FRANCHISE AS A FORM OF ENTRY• MIX INTERNATIONAL MARKETING STRATEGIES

– PRODUCT STRATEGIES - The company makes common collections in 89 countries that have completely different cultural, climatological and morphological environments.

– Portfolio of brands - The products of the company are not commercialized in all the countries under the same brand. On an international level, the chain uses four names derived from the acronym or combination of the original MANGO brand. • MANGO – Original brand name• MNG • MANGO Barcelona – Used in China, wants to be associated with European Origin.• MNG by MANGO – Used in USA, ‘the Anglo-Saxon world uses initials a lot

• PRODUCT LABELLING - MNG brand appears both in the outside labeling as well as the inside, in such a way that the same labels can be used in all the markets.

• PRICE STRATEGY– In general, MANGO applies a medium-high pricing policy, which

accompanies its product policy of medium-high quality

Factors behind Globalization of Mango

• Specific market segment – young women who like fashion

• Price and positioning - ‘A middle class positioning’ but above ZARA.

• COMMUNICATION - MANGO assigns 4% of the total sales in each country to

advertising

• Subcontracting - Mango manufactures none of the garments that it sells

• Logistics and Supply chain management

– more than 140 suppliers around the world, and each region specializes in one type of clothing

that it can manufacture “at a competitive price.”

• Computer platform to manage its supply chain

– Mango can manage its more than 7,000 direct employees as well as the additional 22,000

people who work for Mango indirectly• As at 31st December 2010, the Mango group had 1,757 stores, 1,456 of which were

located abroad because of Cultural Diversity of its products.

“The challenge now is to consolidate the position in each country”. - Isak Halfon

Director of International Expansion of MANGO

Future Sustained Growth

• Explore New Niche Market• Reinforce Brand Image as Designer Product• Personalize Retail Outlets• Plan financial resources• Invest in new Technologies and facilities• E-business

Facts and Figures

Business figures for recent financial years are as follows:DESCRIPTION 2007 2008 2009 2010Net turnover 1,020 ,356 1,100,705 1,145,156 1,269,523Net profit 129,139 143,258 148,016 101,164Stores 1,094 1,228 1,390 1,757Countries 89 90 97 102Sales (%) 76% 77% 78% 81%Employees 6,973 7,865 8,132 8,690

Conclusion• Mission “To be present in all cities in the world and

projecting a coherent and unified image”• Three fundamentals:

1) Offer quality garments at a reasonable price2) Manufacture in countries with more competitive production costs, obtain a low cost and keep prices competitive3) Control operating costs thanks to up-to-date information systems.

• The concept of a global brand have been key factors for Mango's sustained growth over these years.