2506 Words Oct 9th, 2007 11 Pages
Introduction 3
Situation Analysis 3
Problem Statement 6
Alternatives & Evaluations 7
Recommendations 9
References 10

Rick Wang, the managing director of RetailCo. Inc., the master franchisee for the Athlete 's Foot in China, was an American born Chinese, who began his career as an account director at Lintas, an international advertising agency. In 1992, he moved to Shanghai where he became the Vice President of marketing for Shanghai Fuller Foods Ltd. By 1997, Shanghai Fuller Foods Ltd was sold to Nestle and Wang decided to leave the company and strike it out on his own.
With the advice from an American friend at Nike, Rick Wang became acquainted with the athletic footwear industry. Wang entered the retail and
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His second step was to negotiate with the American Franchisor on the subjects of sales territory and royalty fees.
On the subject of sales territory Wang suggested separating the Chinese market into regions: East China, North China and South China. Wang believed that the East China area was potentially the most important market in China and so he decided to focus on that area first. Second consideration would be the North China area and after these two regions were penetrated, development would then take place on the South China area. In terms of Royalty he negotiated a good deal getting a monthly royalty of 2.5% of net sales.
After the deal, Wang and six other colleagues underwent training at the Athlete 's Foot as to get a better idea on how the system worked. In September 1998, when the first store was opened in East China it was situated in a fashion center which targeted young customers between the ages of 20 and 25. Customers were also attracted to the store design and diverse name-brand products in the store. (The store design and equipment were the same as those stores in the United States).
Every RetailCo Inc store acted in accordance with the standard global Athlete 's Foot Inc. Each store was equipped with music, sport videos and fashionable designs that gave a pleasant atmosphere for shopping. All employees provided the best service to the customers. The service staff, were all trained before they began their work. The

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