While disseminating a plan for consumer and product marketing with a focus on global strategies, this presentation for "Marc Jacobs China Expansion" was delivered in front of a graduate-level Marshall School of Business class at the University of Southern California on April 9, 2014.

1. Presented by:
Aeri Koo
Lindsey Pizula
Amanda Hartigan
Yunjiao Xian
Moe Rubel

2.  Expand Marc Jacobs stores in China
 Consumer Research:
 Primary Research
 Survey
 Focus group
 Secondary Research
 China
 Marc Jacobs
 Marketing Strategy:
 Segmentation, Targeting, Positioning
 Marketing Mix
OBJECTIVES

3.  Places: Rodeo Drive &
South Coast Plaza
 Structured Questions &
Unstructured Questions
 Interviewed 36 people:
 24 from Rodeo Drive
 12 from South Coast Plaza
 Challenges
PRIMARY RESEARCH: SURVEY

4. SURVEY RESULTS
 Structured Questions:
 Gender
 Age
 Education
 Employment Status
 Ethnicity
 Demographic Results:
 Female (67%)
Male (33%)
 20-29 (36%)
30-39 (48%)

5.  Bachelor's
Degree (58%)
 Master’s
Degree (35%)
 Employed (81%)  Asian (74%)
 Chinese
Japanese
Korean
SURVEY RESULTS

6.  Unstructured Questions:
 Where where you born? Where do you currently reside?
 What is your favorite brand?
 What brands do you like to see in your country?
 Results:
 China, Korea, Japan, UK, Czech Republic, Germany
 Bottega Veneta, Burberry, Chanel, D&G, Jimmy Choo,
Louis Vuitton, Marc Jacobs, Prada, Roger Vivier
SURVEY RESULTS

7.  8 Native Chinese Students at USC
 Insightful Questions:
Which trends do you see within the global luxury industry?
What are your observations of Chinese consumers and their
shopping habits?
 What brands do you perceive as upcoming fashion in China?
 Where would you position Marc Jacobs in the luxury goods
market?
 What do you like most about Marc Jacobs?
 What do you dislike most about Marc Jacobs?
PRIMARY RESEARCH: FOCUS GROUP

8.  World’s second largest
economy
 Upper middle-income
country with rapidly
increasing economy
 Number of wealthy
individuals expected to
climb to 4.4 million by 2015
 Wealth will spread to
smaller cities like Chengdu
and Wenzhou in the future
SECONDARY RESEARCH: CHINA’S
WEALTH

9.  Belief that luxury goods show status and discerning mindset
 Insistence on quality and authenticity
 Importance of brand equity and the brand’s rich history
 In-store experience ultimately drives purchasing decision
 Reliance on travel and internet for exposure and comparison
CHINA’S LUXURY GOODS MARKET & CULTURE

10. INTERNET & SOCIAL MEDIA

11.  Born on April 9, 1963
 American Fashion Designer
 Launched Namesake Brand in 1986
 Head Designer for Marc Jacobs & Marc by Marc Jacobs
 Creative Director of Louis Vuitton (1997–2013)
 Awards: Lifetime Achievement Award, Menswear/Womenswear
Designer of the Year, Accessory Designer of the Year
 Style: Grunge Fashion

12.  Marc Jacobs, Marc by Marc Jacobs, Little Marc Jacob
 Women’s, Men’s and Children’s ready to wear clothing,
shoes, handbags, accessories and fragrances.
 285 Marc Jacobs retail stores in 60 countries
 Premium price (top-tier luxury pricing)
 Target Market: High-end consumers, elite men and women
 Positioning: Causal elite fashion with innovative trends
COMPANY ANALYSIS

13.  Aim to make Mainland China
its biggest foreign market
 Marc Jacobs signature stores:
 3 in Hong Kong
 2 in Beijing
 1 in Tianjin
 1 in Macau
 Marc by Marc Jacobs stores:
 18 in Mainland China
 Shanghai (5)
 Beijing (4)
 Shenyang (2)
 Chengdu (1)
 10 in Hong Kong
 1 in Macau
MARC JACOBS IN CHINA

14. Strengths:
 Diverse product portfolio
 Falls in line with the price
expectations of high to
middle class consumers
 International recognition
as the former Creative
Director of Louis Vuitton
Weaknesses:
 Limited brand awareness
 Lack of classic luxury style
 Low social media
presence
Opportunities:
 Has room for growth
 Chinese expansion would
boost company growth
 Consumers are
increasingly valuing
brand quality rather than
just brand name alone
Threats:
 Competing luxury brands
 Counterfeit products
 High tax on luxury goods
Internal
Factors
External
Factors
SWOT ANALYSIS

15. WHERE should we sell?
WHO should we sell to?
HOW should we sell it?
MARKETING STRATEGY
OVERVIEW

16.  Demographic: separate the Chinese consumer market
based on factors such as age, gender and income
 Lifestyle/Psychographics: measure by studying the
activities, interests and opinions of Chinese consumers
Age 24 – 39 years old
Primary Market Female
Secondary Market Men
Characteristics  Modern/Urban with Higher Income
 Interested in Luxury Goods
 Young Professionals
 Fashionable
SEGMENTATION
TARGETING

17.  Marc Jacobs will be positioned as a step up for loyal Marc by Marc
Jacobs customers, as they grow older and start earning higher income
 This signature brand will cater to the refined luxury desires of a slightly
older and more professional consumer base
 Classified as a blend of sophistication with unconventionally chic style
 Will position ourselves as: elegant and sophisticated, yet Bohemian and
upscale with premium quality product offerings that are trendy and at
the forefront of evolving fashion
POSITIONING

18.  5 new stores
 4 major cities:
 2 in Shanghai
 1 in Beijing
 1 in Chengdu
 1 in Shenyang
 Purpose of expansion
 Creation of Chinese
version website
PLACEMENT

19. Women:
 RTW Fashion
 Bags & Shoes
 Accessories
 Eyewear
 Fragrance
Men:
 RTW Fashion
 Accessories
 Shoes
PRODUCT

20.  Online research for price comparison
Note:
$1 USD = ¥6.05 CNY
 Maintain pricing model to retain brand equity
Product
Offering
Chinese Currency
(Avg. Price)
US Currency
(Price Range)
RTW Fashion ¥13,500 $595 - $9,800
Handbags ¥15,500 $595 - $3,495
Shoes ¥5,500 $340 - $990
Accessories ¥2,700 $150 - $400
PRICE

21. Traditional Media
 Broadcast Advertising:
 TV spots on national broadcast networks
 TV spots on regional stations
 Print Advertising:
 Fashion magazines: Vogue, Bazaar, Rayli Magazine
PROMOTION

22. Tradigtal Media
 Social Media Engagement
 Weibo (Chinese Twitter)
 Social Influencers
 “Hotspot” Stations
PROMOTION

23. Product Placement in Chinese TV shows
 Celebrity Endorsements
 “China Girl” (Chinese Version of Gossip Girl)
 Producer: Yang Mi (32,667,143 Weibo Followers)
Fashion Shows
PROMOTION

24. Thank you
Q & A