Marketing Plan for Forever 21
MARKETING PLAN
‘FOREVER 21’ IN BRAZIL
Group 5: Melissa Soto, Zhang Yaou, Edward Kamdem, Li Xzangwen, Guru B Krishnan, Manuel Sanabria
EXECUTIVE SUMMARY
The company chosen is Forever 21, which is an American chain of clothing retailers with branches in major cities in the world that offers trendy clothing and accessories for young women, men, and teen girls at low prices. Since its creation these company has been constantly growing. It began with just one store and now it has more than 500 stores in several countries. However, there is still a lot of countries where the brand is unknown so there is still a great potential for expansion of the brand. One of those countries is Brazil, which is one of the top economies in the world in terms of GDP and it has a growing economical rate higher than Europe. Furthermore, in the recent years the Brazilians are more informed and want to be part of the recent trends of the world. So, Brazil is a very attractive market where Forever 21 can invest and open a high number of stores as part of its process of growing.
Brazil’s business culture relies heavily on the development of strong personal relationships and they heavily support their own products, design and industry. Greenfield investment is the best entry strategy in order to establish a WOS (Wholly Owned Subsidiary) that can allow with time and patience to establish a strong bond with Brazilians by hiring local people and also local designers that can create cloth attractive to Brazilians. Thanking into account the good position of Brazilian economy in comparison with the other Latin American countries, the prices in Forever 21 Brazil can be a little higher than the other countries nearby.
FOREVER 21 AND THE BRAZILIAN MARKET
Political and Legal Environment
1 Structure
The Brazilian Federation is the "indissoluble union" of three distinct political entities: the States, the Municipalities and the Federal District. The Union, the states and the Federal District,
‘FOREVER 21’ IN BRAZIL
Group 5: Melissa Soto, Zhang Yaou, Edward Kamdem, Li Xzangwen, Guru B Krishnan, Manuel Sanabria
EXECUTIVE SUMMARY
The company chosen is Forever 21, which is an American chain of clothing retailers with branches in major cities in the world that offers trendy clothing and accessories for young women, men, and teen girls at low prices. Since its creation these company has been constantly growing. It began with just one store and now it has more than 500 stores in several countries. However, there is still a lot of countries where the brand is unknown so there is still a great potential for expansion of the brand. One of those countries is Brazil, which is one of the top economies in the world in terms of GDP and it has a growing economical rate higher than Europe. Furthermore, in the recent years the Brazilians are more informed and want to be part of the recent trends of the world. So, Brazil is a very attractive market where Forever 21 can invest and open a high number of stores as part of its process of growing.
Brazil’s business culture relies heavily on the development of strong personal relationships and they heavily support their own products, design and industry. Greenfield investment is the best entry strategy in order to establish a WOS (Wholly Owned Subsidiary) that can allow with time and patience to establish a strong bond with Brazilians by hiring local people and also local designers that can create cloth attractive to Brazilians. Thanking into account the good position of Brazilian economy in comparison with the other Latin American countries, the prices in Forever 21 Brazil can be a little higher than the other countries nearby.
FOREVER 21 AND THE BRAZILIAN MARKET
Political and Legal Environment
1 Structure
The Brazilian Federation is the "indissoluble union" of three distinct political entities: the States, the Municipalities and the Federal District. The Union, the states and the Federal District,
References: • Boyle, C. (2013). Why Brazil 's Once-Booming Economy Is Losing Its Shine. CNBC. Recovery on 18th of February of 2012 from: http://www.cnbc.com/id/100385785/Why_Brazil039s_OnceBooming_Economy_Is_Losing_Its_Shine • Brazil • Costas, R. (2012). Brazil economy loses ground again. BBC News. Recovery on 18th of February of 2012 from: http://www.bbc.co.uk/news/business-20795783 • Wrong numbers