a Republic mail order service for Japanese consumers.
It is becoming easier for United States businesses to penetrate the market in Japan (Buxbaum, 1995, pp. 69-70). Three reasons for this trend are as follows: the appreciation of the Japanese yen; the opening of new channels of distribution, such as direct marketing; and increased price competition. The appreciation of the yen makes imports cheaper (Buxbaum, 1995, pp. 69-70). As imports create a foothold in the market, they gain acceptance and will likely not be totally replaced by domestic goods even if the yen should fall.
Imports in the Japanese market have been increasing every month at an annual rate of 15 percent or more since April 1994 (Buxbaum, 1995, pp. 69-70). This phenomenon began even before the yen's surge in value. Catalog sales in Japan have been increasing steadily, and are projected to continue the trend.
The above factor auger well for the success of a marketing effort in Japan by the Gap's Banana Republic retail group. What the Gap management must consider most seriously, however, the marketing channel decision. A direct mail channel appears to warrant serious consideration.
Buxbaum, P. A. (1995, October). Appreciating yen makes Japan a better export market. Transportation & Distribution, 36(10), 69-70.
Mummert, H., Orr, A., & Yorgey, Lisa A. (1996, January). The experts predict …. Target Marketing, 19(1), 14–19.
Understanding the Japanese market. (1993, April). Direct Marketing, 55(12), 39-42.
The two facets of the proposed Planet Hollywood strategy are diametrically different in concept. Thus, the issues affecting these two facets of the strategy need to be considered separately.
The first facet of the strategy—opening smaller Planet Hollywood outlets in medium-sized cities in the United States—has both pluses and minuses. On the plus side, Planet
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