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aybe its product is CK’s first line and topper products.
2.4.2. The price strategy aiming at china market
Calvin Klein makes the price depending on the consumer psychology and the reference price. Many economists suppose that the customers are the accepters of price. To their surprise, the sales men found that the clients will often deal with price information positively. They would gather information from the previous shopping experience, the formal channel of information such as advertisement, selling call and pamphlet, the informal channel of friends and parents’ advices and information online. Maybe the price of CK in china is still high. The high quality and the limits of quantity make the clients who want to buy those limited editions to manifest its social codes fascinated. Yes, high price is the symbol of Calvin Klein; a new market and new consumers ask for the company to make decisions with reference price. To realize the biggest market share, Calvin Klein had better to list price in a relative middle level. This way can satisfy the Chinese people two needs, the desire to have luxury consumption and as well can afford it. The technology helps price reduction a lot. Nowadays, many websites about group buying prevails among many Chinese internet users. The idea of rebate can help the buyers save much money at the same time enlarging the influence of the brand.
No matter how successful the company is, when entering into a new market, it is very important to fix the fittest price, change it along with the alteration of environment and analysis the psychology of consumers. After these were prepared necessarily, maybe the company can achieve its goal in the new market and obtain a high customers’ perceived value of its products and services.
2.5. The diversity of sales channel
The task of marketing channel is to transfer the products from the manufacturers into consumers. Today, the majority of companies adopt the multi channel marketing way. Disney sells its DVD through five methods such as Blockbuster, the Disney store, tailors online, stores and directory distributors of Disney or someone else. These different channels provide the biggest market coverage for Disney and could sell the video products with variable price. It is the similar way with those big companies like Disney.
As we have discussed in the first part, the ways that Calvin Klein enters into the china market are direct exporting, licensing and global network sales. The typical method that direct exporting way of Calvin Klein is that CK has many independent stores to sell its products. And its channel mode is often called B2B (Kotler, 2011) mode. It is because of that many big customers love to buy things in the clean and comfortable shops. The industry manufacturer can utilize its salesman to sell its products and set up many stores to distribute them. Or these producers sell products to industry distributors, and then let the distributors to sell the products. And the last way is that maybe the representative man of the industry or the market sales affiliated agency could sell products directly to the consumers. Thus, the zero level, the first level and the second level marketing channel is often seen.
Aim at the medium scale customers, Calvin Klein choose to sell them products online. We have referred that more and more Chinese internet users arise and they have much passion to buy clothes and other thin