Answer to Question #236214 in Management for Nachiket Pawar

Question

Course: Strategic Management

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).

" I WANT FULL LONG ANSWER"

Answer 1

Differentiation is a generic method that I would choose since it allows a company to create products depending on the preferences of its clients, providing them a competitive advantage over other companies producing the same product. I'd go for the following categories of clients:

a) Loyal customers: They make up a tiny fraction of the total customer base yet account for a large portion of sales.

b) Impulse buyers- These clients don't have a specific product in mind and instead purchase whatever appeals to them.

c) Discount clients- These are customers who shop regularly but mostly rely on markdowns.

d) Need-based customers are people who want to buy a specific item.

e) Wandering consumers-These are potential clients who are undecided about what they want to buy.