Answer to Question #233824 in Management for Vrushank

Question

You have been appointed as a Strategy Consultant to an International German luxury brand Philipp Plein wanting to enter the Indian market within the year. The luxury clothing brand offers high-end clothing for men, women and children.

Which one of Porter’s Generic Strategies would you choose to be operational in India & explain the reasons in detail behind your choice of strategy?

Once the strategy has been chosen, explain the categories of customers you would target alongwith the price points? (Please assume that Covid-19 pandemic is over).

Answer 1

The cost leadership strategy: this strategy boost a firm’s profitability. When a product’s popularity and notoriety grow following its low price, a company earns extra money than planned. Therefore, following the cost leadership strategy will build a thriving market with long-term feasibility that will not be disturbed by any new entrant.

The category of customers I would target are:

a). Wandering customers.

b). Need-based customers.

c). Loyal customers.