List of acronyms
1.1 Introduction of case company案例公司1.1简介
BV基于质量它被誉为意大利奢侈品客户商品制造商，其核心价值在于它的技艺，品牌有它独特的排他性和低调的奢华。产品范围包括皮革制品（手袋、箱包和小皮制品），男性和女性的成衣，鞋子，首饰，饰品，家具和家居装饰品。BV拥有优秀的设计师和选择最好的材料来生产产品。这是众所周知的，它的设计风格低调，没有把任何标签和产品标识放在产品上。皮包远销是由于其独特简单和优雅的设计，因此BV的忠实支持者很容易识别。虽然它与路易·威登不同，但它每年都能获得可观的利润。对于2013年第一季度，该公司公布的记录由236.6欧元增加17.2%万家，2012年定位为一个比较同期的销售总额。Bottega Venetais founded by Vittorio and Laura Moltedo in the early 1960’s, headquartered in Milan, and had been merged with Gucci Group in July 2001. It is reputed as an Italian luxury customer goods manufacturer based on its core values of quality, craftsmanship, exclusivity and discreet luxury. Product range have full classifications include leather goods (handbags, luggage and small leather goods), both men's and women's ready-to-wear line, shoes, jewelry, accessories, furniture and home decorations. Bottega Veneta owns excellent designers and chooses the finest material to produce products. It is well known for its Quiet design style, without putting any label and logo on products. The leather bags are sold well by its distinct simple and elegant design, thus Bottega Veneta’s faithful supporters are easily to recognize it.
Diagram 1: Bottega Veneta products sample
(Need to add info. of organization structure)
Although it is different with Louis Vuitton, it earns a considerable profit every year. For the first quarter of 2013, the company reported total sales of EUR 236.6 millionwhich positioned as an increasing of 17.2% compare to the same period of 2012. While it remained a steady raise on sales till the next quarter, thus the first half of 2013, BV owned a positive sales result at EUR 465.6 million, growing by 12.9% compare to the first half last year. In addition, the reports indicate that approximately 82% of total sales gained during the first half of 2013. The sustained growth of sales generate a result of operating income at EUR 146.5 million, equal to 31.5% of revenues.
Distribution of BV stores is global, consisting of North America, South America, Europe and Asia with more than 140 stores. There are 7 store are established in Shanghai, and one among those is an outlet store. #p#分页标题#e#
Diagram 2: Bottega Veneta finance situation in 2012 and 2013
1.2 Problem definition问题定义
Customer orientation can be defined as a type of business strategies which principally focuses on the marketing demand based on the known customers’ wants and needs. According to the experiences of internship in BV Shanghai branch, it has been obviouslyrealized that the purchase of luxury products tended towards younger people. Therefore, this research aims at redefining who has a distinct possibility to be the main target group of BV in Shanghai market in three years. The Ishikawa diagram illustrated as below will analysis the possible reasons might influence the decisionswhen redefine the main target group of BV Shanghai branch.
Diagram 3: Fishbone diagram
The decisions of main target group of Shanghai BV will through the analysis of customers’ buying behavior and customers’ psychology. Basically, the conjecture of this research is based on the marketing theory 4Ps model, which is described in the following paragraph.
Product quality is main concerned: it refers to the sensitive of the quality of a specified luxury product. People who afford to a luxury product are not only focusing on its logo but also the generic quality of the product.
Product design is constant: it refers to the appearance the product as well as its material. However, it much more concentrates on fashion. However, BV’s design style is generally regarded as constant, without various innovations.
Various functions make it practically: it refers to the purpose you buy this product, for working or for dinner party. Style and price are not the only reasons that taken into consideration, goods which are super practical attract a couple of people as well.
BV Brand is not identifiable: the worth of a BV product in your mind reflects the willing and purposes that customers’ purchase. Customer may not recognize BV brand products as long as they see them.
Buying behavior is influenced by brand: apart from the obvious purpose that a bag can be used to place stuffs; it still has other intangible values, for instance, permanent collection, especially for limited version of BV products. Whether customer buys it or not depends on this brand apart from the design and price of substitutable products.
Price strategy: price is one of the distinct direct reason influence customers’ selections when buying products. Rising or reducing price impact sales.#p#分页标题#e#
Advertisement: the methods of BV group promote its products influence the consumers’ purchasing. Ways of getting information of BV products and its new collections information are belong to advertisement.
Celebrities’ effect: If a superstar uses BV products or being public representative for BV, it benefits quite a lot in marketing accomplishment.
Brand loyalty: it differs from a person who is just appreciating a certain product of BV or being loyal fans of BV for long term.
Location of stores: there are six BV sales stores in Shanghai and one outlet. The location of stores is an issue that reflects customers’ willing of buying by considering the transportation and attractiveness of this store.
Competitors: Shanghai is a super city with thousands multinational brands. Customers are able to choose a substitutable product instead of BV. Whether competitor of BV, for instance, Louis Vuitton, Burberry etc. has been a reason of consumers’ determination will be investigated. For a similar product, for which brand customer is rather to buy is a question that will be researched.
1.3 Research Objective研究目的
The objective of this research is to find out the exact target group of BV in Shanghai market through customers’purchasing desires and their buying behavior.
1.4 Research Questions问题研究
Main research Questions:
How to define the main target group of BV in Shanghai Market?
Q1. What do customers expect from BV products?
1.1 Before you decide to buy this product, what are the main points you take into consideration?
1.2 What kind of design may attract you much?
1.3 Whether the various functions of a certain product get added value?
Q2. How does brand awareness influence customers’ purchasing?
2.1. If it is important for you to buy a luxury product with distinct label or logo?
2.2 How does BV brand influence you when decided to choose it?
2.3 Whether the price strategies influence your buying behavior regardless of the brand?
Q3. How to keep BV brand loyalty?
3.1 How do you know BV brand?
3.2 To what extent you may buy BV products instead of other substitutions?
Q4. Whether the online store can exist as well as real stores?
4.1 How does the location of stores influence the sales?
4.2 Why do you decide to choose BV instead of other brands as they display in the same and nearby shopping mall.
4.3 If there is an online store for BV, will you buy it through internet?
1.5 Research design研究设计
Research Question Literature review Method Sample size
Q1. What do office ladies expect from BV products? Augmented product concept (Three Levels of a product) Survey (interview and questionnaire) Buying people: 100
Not buying people: 100
Q2. How does brand awareness influence office ladies’ purchasing? The 3 Stage Theory of Branding Desk research, case study, observation and questionnaire Buying people: 100
Not buying people:100
Q3. How to keep BV brand loyalty? Brand loyalty and sequential learning theory Interview and questionnaire Buying people: 100
Not buying people:100
Managers and designers: 4
Q4. Whether the online store can exist as well as real stores? SWOT analysis Interview, questionnaire and observation Buying people: 100
Not buying people:100
Table 1: Research design
Date collection: secondary data
The research results of defining the exact target group of BV in Shanghai market in the three years are based on customers’ (old customers and potential customers) buying behavior and customers’ psychology. The data used in the analysis will be collected from the company’s official website and internal documents and sourcesprovided by the company. In addition, the related books and theories are selected to help with doing this research. It is most sufficient way to obtain reliable secondary information and reduce the risk for getting wrong information.#p#分页标题#e#
Date collection: primary data
The primary data collection method refers to the direct and elementary ways in collecting research data. The entire research process will be proceeding within two stores out of seven, which are located in the main commercial area in Shanghai and occupy the largest scale. It contains interview with buying customers in BV stores and not buying but might buying people around the shopping mall (out of BV stores). Questionnaires will be spread among them. The sample size will be 200 in total. Through enquiry the marketing managers and designers, the researcher will also gain useful information that can be valuable to the research. It includes semi- structured and in-depth interview, and analyzing the company’s report as well.Furthermore, the observation is mainly consisting of the internship experience in the company and personal sensory perception in some extent.
1.6 Literature review文献综述
Augmented product concept (Three Levels of a product)
Diagram 4: Theory of Augmented product concept
The 3 Stage Theory of Branding
Diagram 5: buying decision process model
Brand loyalty and sequential learning theory
It is a book written by Mr. Stephen B. Knouse to explain the brand loyalty.
SWOT analysis model will be used here to illustrate the influence between sales and locations.
1.7 Project process plan项目工艺方案
Diagram 6: Gantt chart of process plan
1.8 Project risks项目风险
1. Possible the long researchprocedure will delay the thesis.
2. The research design may not proper to find out the exact results related to the research objectives.
3. Difficulty in finding out each answer on questionnaires from each one who is surveyed, in other words, some of the questionnaires are ineffective.
4. No response from the customer lists people.#p#分页标题#e#
5. Timeframe is limited. The thesis defense will be presented on July thus the final version of thesis should be handed in before the end of June.
6. Data collection sometimes blocks the progress of the research.
7. Poor English skills may damage the quality of thesis.