An Apparel Brands Channel Strategy: The Case of Oliver in Korea

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Hyejeong Cho
Yanghun Lim
Sungmin Ryu

Keywords

Marketing Channels, Channel Design, Retailer types

Abstract

The purpose of this case study was to describe the development of a channel strategy for an apparel brand, BoKids, designed to distribute its brand, Oliver, efficiently to customers. Bokids launched its childrens apparel brand, Oliver, in Korea by signing a brand license contract with Oliver of USA. When the brand was launched in 2005, Oliver was positioned as a brand with a reasonable price and a high quality product, which was sold primarily through department stores. In 2007, Oliver was suffering from sluggish sales volumes, and switched its main distribution channel from department stores to discount stores, which are the number 1 retail format in Korea. Oliver was compelled to adjust the price range of its main products to $20 30 in order to satisfy the needs of discount store customers. However, Oliver has considered Internet shopping as another channel for the Oliver brand, as Internet shopping is rapidly gaining popularity in Korea. This case can be used in conjunction with discussions on marketing topics, such as the design of marketing channels (Chapter 6, Designing the Marketing Channel, Marketing Channels: A Management View, 7th Edition by Bert Rosenbloom, South-Western College Pub, 2007) for senior level marketing seminars.

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