Cas d'entreprise FPL France (document en anglais)

International Marketing

Faguo Shoes in Australia

SUMMARY

SUMMARY 2

I. Presentation of the company and its industry 3

1. Mission Statement 3

2. General Description of Faguo 3

3. Analysis of the global industry 5

4. International Competitors 9

5. SWOT 11

6. Location comparative advantage analysis 11

II. External analysis 14

1. Porter 5 analysis: footwear market in Australia 14

2. PESTLE analysis 15

3. Local Competitors 19

4. Cultural Aspects to note 19

III. Marketing strategy 20

1. Segmentation, targeting and positioning 20

a) Market segmentation 20

b) Targeting 20

c) Positioning 21

2. Market entry mode and growth 21

3. Logistic and supply 22

4. Governance and Human Resources 23

5. Mix Marketing 24

a) Product 24

b) Price 25

c) Place 27

d) Promotion 29

IV. Costs and sales forecasts 31

V. Sources 33

I. Presentation of the company and its industry

1. Mission Statement

The Faguo shoes is a new French brand. The Faguo Company is dealing with a simple idea. On each shoe there is a button made in coconut which is the symbol of the tree planted at each pair sold. It is a responsible brand, with whom the environment is a priority as well as being fashion and trendy. It is a trendy ecological shoe!

2. General Description of Faguo

Faguo shoe is a company that sells shoes such as sneakers, with ecological issues. Indeed, their mission is to plant a tree for each pair of shoe sold. Frédéric Mugnier and Nicolas Rohr, two young students from a Parisian business school, have created this French company at the beginning of the year 2009. After their gap year in China, where the shoe market is a real huge industry, they get the idea to create their own sneaker brand, adding an ecological concept. The name of the brand “Faguo” means “French” in Chinese.

All Faguo shoes are produced in China and are made of biological cotton and natural rubber. It is sold in a recycling box. Furthermore, a little coconut-wood button is sewed on the side of the shoe in order to remind the ecological aspect of the shoes and the brand. For every pair sold, they decided to plant a tree in several forests in France like in Bourgogne, Normandy, Pays de la Loire, Nord, Picardie and Limousin; in association with the NGO “Planète Urgence”. It has been such a success. As a consequence, the brand is going to start planting trees in Belgium, where the Faguo shoes are being more and more fashionable. So far, around 80 000 trees have already been planted.

The company started with 4 different models, and different colors; and since then, two new models are available, with other colors as well. For the spring-falls 2011 collection, Faguo is about to launch a model for kids, and a teak model. The faguo shoes are available in several French cities such as Paris, Lille, Bordeaux, Lyon… There are also shops in Hong Kong, Japan, Spain, Canada, Belgium; and it is also possible to buy on the internet through their website.

The customers are mostly young people, living in a quite big city, sensitive to the climate challenge and producing condition. Their presence on social network keeps the dialogue open between the brand and the customers. It also brings trust and loyalty toward the company. Products are “made in China” and carried buy ship to France, in order to pollute less.

In order to prove their feelings toward ecology, they decided to create the following logo:

Moreover, the company invests a part of its turnover into earth owner in order to encourage them to plant with trees their unexploited areas. They have a strong partnership with Naudet, a French leader of forest plantation. Concretely, when a pair is sold 50 euros, 9 goes to the VAT, 21 for the distributor, 20 to the company, and 1 euro (5%) to the Naudet company that plant the trees.

Here, are key datas about Faguo:

Turnover 1.2 Million euros (2011)

Number of facebook “fan” Over 27 000

Number of “followers” on Twitter Over 680

Number of trees planted Over 78 000

3. Analysis of the global industry

The global footwear market had total revenue of $196.25 billion in 2009, representing a compound annual growth rate (CAGR) of 3.7% for the period spanning 2005-2009. In comparison, the European and Asia- Pacific markets grew with CAGRs of 3.4% and 4.4% respectively, over the same period, to reach respective values of $77.17 billion and $33.52 billion in 2009.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.3% for the five- year period 2009-2014, which is expected to drive the market to a value of $230.79 billion by the end of 2014. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 3% and 4.4% respectively, over the same period, to reach respective values of $89.58 billion and $41.66 billion in 2014.

As it is shown in the graph below Americas represent the largest part of the market with 42% of total revenues of the market, but Europe and more specially Asia-Pacific present are more attractive as the growth of the market in these regions

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