Powerpoint presentation about the company Reiss that is investing in China.

1. SHOW YOUR CARREER WITH REISS Young Business Consultants – Marketing Plan Beijing It is recommended to watch presentation full screen

2. Executive summary

3. Reiss: From 1970 until now Reiss is known as a individual, sexyand stylish brand. Reiss the brand Offers individual and aspirationallook at affordable prices, successfully combining good design, quality and value. Key values underpinning the brand’s image creative, contemporary, essential, comfortable, affordable, directional Established a reputation for good quality, fashion forward, price competitive offerings Time line Concept has proven itself, time to expand abroad.

4. The vision of Reiss The vision for the organizationEstablishing and developing the brand name Reiss internationally. The mission With the local Chinese partner Booshing will the UK concept stores of Reiss adapt to the Chinese culture, a joint venture with Booshing will create the start for a larger franchise in Beijing China to penetrate this market. Aspirations The aspirations of this plan isbecoming a well known quality brand within the Chinese market of Beijing Chinese objectives- Open 3 stores with the joint venture and have these running at 100% after 4 years.- Adapt the UK concept .- Open 6 franchise stores and have these up and running at 100% after 4 years.- Apply the marketing campaign “show your career” for 3 years.- Create top-of-mind awareness with 3% of the urban core (550.000 people). Strategic intent Financial performance to ensure a long term growth of the Reiss brand. Overall objectivesCreate a global brand name Reiss.25% increase of international sales and 8% internal rate of return.

5. Market overview and situational analysis Where are we currently? Reiss is Currently still in the UK. There the concept has proven to be successful in both the men's wear as the women's wear. One of the possibilities to grow is to expand to Beijing. Beijing will be a raising city with raising economy in the future. There are many long term possibilities abroad. This will be an opportunity for Reiss to meet its objectives. Review of what has been going well The middle class is growing but also the spending power is growing. So people have more money to spend. But is it’s important to know, are they able to pay Reiss’ product for more than one time? Not only the extreme rich have money to buy clothes that provide more than just the basic need, warmth. The middle class are able to afford Reiss clothes and this group will expand. Reiss has the possibility, knowledge and the resources to take its share of this new and growing market BEIJING AS THE NEW MARKET With the strategy joint venture > Franchise What has been going badly, in need of attention? The fast growing market of Beijing should stay under constant survaillants. The economy is growing really quick. The corrupted government , the culture and the currency should all be under constant research. Reiss needs a local partner to enter a new market. It is necessary to have the right network with the right partners. Factors that have contributed to this Branding – Introduce the brand in China, having a good name Marketing – With the right marketing plans achieve the objective The experience store - the stores in Beijing

7. Permanent and seasonal renewing

8. Development brand life cycle (not established for now)

10. Web site

11. No distributor takes the risk, Reiss hasno influence on the distributorPortfolio analysis Reality checkNeeds and wants of middle class are changing. Reiss can fill this gap. Reiss is capable to achieve this with the right resources. With this, Reiss outrun its competitors. Product and brand lifecycle positions

13. Good quality: it explains the price !

14. Start life cycleThesestrengthsapply to the middle class in Beijing. How to improve the weaknesses? Website : can help to see what do the shop proposeThe brand: not known in China, internet can help High prices : the middle class is growing and their spending power too.

16. Growing power spending/middle class

17. Enough partners to work with

18. Expatriate people

20. Us market

21. Corruption

22. Competitiveness of industry

23. Culture = different consumer habits

25. Enough space in China.- Permanent renew of collection - Good known brand - Quality of its products  Critical Success Factors Branding Save the value proposition Reach the Objectives - US market is very important - Be careful about imitation and fake - Adapt to the culture, size, and colours - Us market important - High prices - Middle class is fragile since the social securitysystem is far from perfect. There are many opportunities with the right resources, threats have to be secured by research

27. Franchise

28. Promotional activities

29. Adapting the stores

30. Improving skills of management

31. Hiring staffBring the message: “Show your career with Reiss” Reiss’ products are higher than the average of market and it has a medium target, but we can conclude that Reiss is the best on its segment(Street fashion and Exclusively fashion)

33. Previous successful product is decreasing  constant renewal of product life cycle

34. Profit/ Unit: If brand is more known, profit will increase. The more sold, the higher the profit.Probable customersmoves: Follow the early adopters Growing middle class Fashion victimsStarting business people competitor moves and developments Competitors will react by new offers, special sales and price changes. Quick market adaption and new advertisements on short term strategy Big idea: “show your career with Reiss” What should Reiss do in order to kill competitor? High investments in the brand to create customer loyalty

36. Objectives: 3 joint venture stores+ 6 franchise stores/ 3% urban core / within 3 years

38. Reiss fit more to women needs than men needs - Targeting customers and consumers  Target segmentation ( 3%) Market segmentation of the urban core, divided in segmentations 

39. Preliminary market objectives Profits forecast and sensitivity analysis The Chinese market is evolving faster than the UK market. Competitive stance and competitive advantage The current market is people who are not aware of the brand Reiss. Reiss has to excel out of the others. By introducing the brand, it will attract the early adapters. The competitive advantage is being an exclusive brand from the UK, unique brand because it is the first Reiss store in Beijing. This is attractive for early adapters.

40. The positioning statement: Focus on target market Reiss’ fashion is for young active and middle aged in China, focused in Beijing. This target group wants/needs to spend more time, money on their appearance, the middle class is growing, so there is more money to spend. The clothing piece (fashion) is a luxury good, a must have for every young professional. That provides individual, stylishand sexy properties and shows your career success. Product by Kotler The possible competitors for Reiss are: Levi’s, Louis Vuitton, Zara, Calvin Klein, Polo Ralph Lauren

42. Development of the brand in Beijing Market mapping: Possible places for development of the brand: Shopping malls, shopping street. In total there will be 3 stores in the centre of Beijing. Competitor advantageFills the gap for the middle class Selling propositionSelling individual, stylish and sexy clothes. Show your career by wearing Reiss For every occasion, dress for the moment! The bases for differentiation and competitive advantages: strong branding, being unique Leveraging assets and strategy The delivery of greater value: when the brand is familiar with the market group, China can expand to more stores. Competitive advantage, selling proposition and brand values

44. 25% increase of sales means £ 5.220.750.

45. UK stores make £ 20.000.000 in sales with 25 stores. This is £ 800.000 per store. The assumption is that the joint venture and franchise stores will run up to 20% in the first year, 50% in de second, 90% in the third and 100% after this period.

46. Joint venture opens 3 stores in the first year.

48. This trend will be combined with 50% hedging of the money earned in China. Funds will be transferred to the UK when the currency is high for the Yuan so Reiss gets more Pounds. To apply risk management, the other 50% will be transferred every quarter.

50. A combined £ 7.5 million investment.

54. A local partner will do market research to provide valuable information for the adaption process. Which clothing lines work and which not?

55. Actively creating a Chinese business network for potential franchise partners and to avoid problems with corrupt authorities. Increase market coverage by using the established network to franchise.

56. Creating strong guidelines for franchise shops to market the brand name Reiss. Reiss will control 90% of the stores products price and design.

57. To increase efficiency, standardization of the concept will be used for the franchisers.All these things combined give Reiss high control.

58. Contingency thinking