...Study case : Diesel “Live, breathe and wear passion” 1 : Explain which of the promotional strategies used by Diesel are above- or below-the-line. Analyse the impact that each approach might have ? There are two different types of promotional strategies. One is above the line and the other one is below the line. Above the line is using the media like television, radio to promote your product to a mass audience. Below the line is looking to reach a customer not a whole bunch of people, an example of a below the line is using catalogues, direct mail. An above the line strategy used by diesel is through commercials and billboards. The Television ad of diesel has probably the biggest impact to their company because everyone watches television. When people see their advertisement they will think about the product and if they like it they might go to a Diesel store and buy their products. Another above the line strategy that Diesel uses is music. They now have their own radio station and they sign bands that are unknown and give them a chance to be heard by people. This can help Diesel to promote their company because when the unsigned band becomes famous Diesel will sponsor them when they go to tours and concerts. People who like the band will copy what their wearing and therefore diesel will be able to sell. A below the line strategy that Diesel uses is they have special offers. Customer’s loves special offers, so when they see that Diesel has a special offer, they...
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...China’s ‘LUXEPLOSION’ 1 It is an industry driven by an ECONOMY ON HYPER-DRIVE NOMINAL GDP: 1992 TO 2011 Source: World Bank 2 A quick expansion into ‘NEW GROUND’ PROVINCIAL GDP PROFILES (2011) Shanghai Beijing Tianjin Inner Mongolia Shaanxi Hunan Chongqing Sichuan Guizhou Source: China National Statistics Bureau, BBDO Analysis 3 As the economy expands and breaks into new ground… …the luxury category is also following suit -- it is achieving high growth simply by getting MORE PEOPLE TO BUY LUXURY GOODS FOR THE VERY FIRST TIME… 4 Luxury spending growth is driven by CATEGORY FIRST-TIMERS DECONSTRUCTING LUXURY SPENDING IN CHINA Source: Bain Luxury Market Survey – China 5 The crucial role of China’s BURGEONING MIDDLE CLASS % SHARE OF URBAN HOUSEHOLDS by income group (in RMB) % SHARE OF LUXURY CONSUMPTION by income group (in RMB) Source: McKinsey & Co. 6 How can they AFFORD LUXURY GOODS What is driving THEIR INTEREST IN LUXURY ? 7 China’ s middle class have a MINDSET THAT IS CONDUCIVE Optimism Ambition Loving of Life for luxury goods & services 65% feel their life will be better in the next 12 months. 42% say they work or study harder in order to succeed. 87% find it important to experience new things & enjoy life. Source: BBDO Voices 8 Their is a desire that is much stronger than THEIR EARNING POWER 49% 62% Say they long for luxury goods despite not...
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...F A S H I O N C O M M U N I C A T I O N ! ! ! ! ! PUBLICITY AND PUBLIC RELATIONS: Assignment - 1 INDIA! ! REPORT PRESENTED BY:! Shalini Mohanty! 9th November, 2013! ! ! ! 2 4 t h O c t o b e r, 2 0 1 3 • Raffles Design International, Mumbai Table of Contents! ! Table of Contents! Indian Luxury Retail Market! Introduction! i! The Indian and the Global Luxury Market! 2! ! 2! i! i! Publicity and PR: Successes! Case Study - HUGO BOSS! 3! Case Study - Charles & Keith! Case Study - Ray-ban! ! 7 6! 3! PR & PUBLICITY: Failures! Case Study 1 - BVLGARI! Case Study 2 - FCUK!10! 10! 10! Why did BVLGARI and FCUK fail?! The Indian Customer! 1! 1 Indian customers value…! 12! 11! Demographics of Indian Luxury Customer - Typically a 25 - 45 year old entrepreneur. ! 12! Learning Points.! 13! Fashion Communication! ! "i Assignment 1! Publicity & PR: India Indian Luxury Retail Market! ! Introduction! Currently, India is the second fastest growing market in Asia Pacific region and is expected to be the 2nd largest economy in the world by 2040. She is currently the second fastest growing luxury market in the world with a predicted growth rate of 25% over the next 5 years.! At the moment, the Indian Luxury Market is valued at $4.8 billion where apparel, jewellery and personal are are the largest sectors in market. Although it forms only 2% of global share, it shows...
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...Analysis10 4.4 SWOT Analysis12 4.5 PESTEL Analysis14 5.0 STRATEGIC ALTERNATIVES20 6.0 RECOMMENDATION23 7.0 ACTION PLAN24 8.0 CONTIGENCY PLAN28 9.0 REFERENCES28 1.0 CASE SUMMARY In recent years, modern customers are no longer acquiring shopping only for their goods and services. Nowadays, these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality. Since the 19th Century, the manufactures of Louis Vuitton goods are still handmade and over 100 stages are involved in the making of each bag. All products are extensively tested to make sure that they can withstand wear and tear, and that there are no imperfections. The company markets...
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...INTRODUCTION Louis Vuitton (LV) is known for its manufacturing of fashion and leather goods. One of the company’s early successes occurred when a French craftsman invented a flat-topped trunk. This new trunk was different from its predecessors, the dome-shaped trunk, in that it was easier to stack and transport. For seven decades Louis Vuitton solely produced leather handmade bags. In 1987, the company merged with Moet Hennessy and diversified into leather accessories. In the mid/late 90’s the company received increasing pressure from Wall Street to sustain a double digit growth rate. In response Louis Vuitton began to look for opportunities to expand globally. Its focus quickly turned to infiltrating the Indian market. By 2008 Louis Vuitton had opened two other stores located in luxury hotels in India. These hotels provided easy access to LV’s targeted market, which was the “super rich”. Now the company was faced with another decision, to continue operation in luxury hotels or to expand into luxury malls. Up to this point, luxury malls were new to Indian consumers, creating a level of uncertainty for Louis Vuitton. In this case evaluation, we will discuss the impact of a high-end company entering a low income country. HIGH-END BRANDS IN LOW INCOME COUNTRIES A high-end brand, such as Louis Vuitton, can often find a market in a low income country. Sometimes the market is too small or too fragmented to pursue, but this is not always the case. Many low...
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...Coach Inc.’s Internal Assessment Appendix Company’s Vision and Mission Vision: Aim to be the leading brand of leather goods and accessories in affordable luxury market Mission: Ensure that the Coach brand remains a premier, distinctive and easily recognizable brand by delivering a consistent message to the customer through communications (coach.com, global e-commerce sites and social networking sites) and visual merchandising while protecting the brand from counterfeit goods Objectives * drive growth and increase market share by expanding their distribution channels to reach local consumers in emerging markets and leveraging the global opportunities * multichannel distribution model and increase global distribution * improve same store sales productivity and increase sales of products targeted toward men * build market share in North America, Japan through the addition of new stores * Raise brand awareness and build market share in underpenetrated markets such as Europe, Asia and South America * Anticipate consumer changing needs by being “consumer centric” through the use of extensive customer research and surveys to innovate to create customer and shareholder value * matching key luxury rivals in quality and style while pricing the goods at 50 percent or more cheaper than competitors Strategic Objectives Business Level Strategy * Product differentiation – “accessible luxury brand”. It can defend against new entrants since they...
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...In Japan, whether you are in Tokyo, Osaka or Nagoya, just turn your head and Louis Vuitton is everywhere. The celebration of the 30th anniversary of the presence of the illustrious, glittering French multinational in Japan took place in Aoyama, one of Tokyo’s fashionable districts. A unique vision of luxury took shape when Louis Vuitton opened yet another new store inside Comme des Garçons on September 4, 2008, in the heart of Japan’s capital. The pop-up store situated on the prestigious Omotesando Street was an illustration of Louis Vuitton’s attachment to the Japanese luxury market. Yves Carcelle, chairman and CEO of Louis Vuitton, said, “This project not only brings a new meaning to luxury, but also speaks volumes about how the know-how and heritage of Louis Vuitton have always been perceived in Japan, including by its foremost designers. We are very proud to have been able to help Rei Kawakubo2 relive her memories in such an original and creative way.”3The Omotesando guerrilla marketing event reflected Louis Vuitton’s success in Japan. Louis Vuitton had been following an aggressive marketing strategy in the country, opening extravagant stores such as those in Ginza or Roppongi.Take a walk on Ginza’s main street, Chuo Dori, the centre of a paradise for shoppers, with longestablished department stores, such as Mitsukoshi, Takashimaya and Matsuzakaya. Continue through the high-end fashion street Namiki-dori. Stop. There it is. You have reached the massive flagship...
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...RISK & ASSETS OF THE FORMER IMPLANTATION OF SEPHORA IN CHINA With an annual turnover of around 2.5 billion euros, Sephora is a worldwide brand. Present in China since 2005, the company now has 135 stores in 47 cities. The brand has experienced a rapid development and do not stop there. The brand aims to open more new stores, particularly in the towns of 2nd and 3rd level. Indeed, cosmetic products in China are rapidly expanding. What were the risk and assets of an implantation in China? I - RISK 1. Cultural rigidities Traditionally, cosmetics, especially skincare and fragrances are reserved for women. Taking about caring of your body is not a major concern for men, especially in rural areas. However it develops in the cities new male customers, more westernized, consisting essentially of managers with a high enough income. Female customers appreciate in great majority the skin lightening products. Unlike the European, they prefer light perfumes and discreet scent, and they prefer the scent of flowers. In addition, the Chinese hardly use deodorant. Most Chinese do not know cosmetic products or only a small part, which requires a high level of involvement on the part of vendors and a strong marketing strategy to attract potential consumers. 2. Copying Counterfeiting is a problem in Asian countries and in particular China, where the industry has taken on an unprecedented scale over the last ten years. It represented in 2006 about 8 % of China's GDP ($115,76...
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...How to target Chinese luxury consumers Fashion in Macau Date：13/11/2012 Students name: Emma Ling Monica Anni Content Content 2 Introduction 2 1.Market 3 A. Market Size 3 B. Region Size 5 C. Consumption 6 D. Distribution 7 a. The real stores 7 b.The online malls 8 E. Communication 10 a.Why we take point-to-point communication 11 b.When to start point-to-point communication 11 c.How to start point-to-point communication 12 2、Main Players 12 A. Brand summary 12 B. Rank 13 C. Brand development 14 3、Consumer Behavior 15 A. The purpose of consumption 15 B. Region Potential 15 4、Market Segmentation 17 A. Geographic Segmentation 17 B. Demographic Segmentation 17 C. Sociocultural Segmentation 18 5.About Destination Macau 19 Conclusion 21 Sources 22 Appendix 23 Introduction Our group chose fashion as our topic in many luxury category, because we as constumers are concerned about fashion in luxury segment, and the most powerful global luxury goods group is also about fashion. (see “2,Main Players”P12).The most important is that Chinese consumers may most concerned about fashion in luxury segment.Because luxury segment always lead the fashion,so that they can put their new products on the sale. We chose Macau as the analysis city because as one of the special administrative regions of China, Macau has its unique policy and economic model(see Appendix). And because the area is small, it’s...
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...• Status of the luxury market today: According to the latest survey of The World Association of Luxury goods, Chinese luxury consumption amount in January this year has up from $8.6 billion to $9.4 billion, accounting for 27.5% of the world. It is expected to 2015, China's luxury consumption will account for 32% of the global market, becoming the world's largest luxury consumer than Japan. With China's luxury consumption ability to continuously release, this brand in China is expected to have obviously large sales growth space. According to Viscoelasticstatistics, large luxury product groups coming to settle in Beijing, Shanghai and Hong Kong. The numbers of shops are now beyond that of Italian and equals to that of London. In previous years, in Shanghai and Beijing, Tod 's, LV, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and etc. brands flooded in just a few months. At present, the domestic market possesses nearly two thirds of the luxury brands, estimate in 2013 years or earlier, people can find all luxury brands in domestic market. • The status of LV’s market in China and its strategy: There are about 100 sales outlets of LV watch and jewelry in domestic now. LV bag has opened 39 stores in China now and the sale amount is accounted for nearly 40% of the whole sale amount of LV in the world, which is beyond the Europe,the birthplace of the 19% market share and the 23% market share of USA. A Chinese cinema's manager said jokingly: “If a cinema can earn 20 million...
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...4353 OCTOBER 10, 2011 ROBERT SIMONS MICHAEL MAHONEY Raleigh & Rosse: Measures to Motivate Exceptional Service Grasping the iconic “golden horseshoe” door handle, CEO Linda Watkins strode into Raleigh & Rosse’s Palm Springs, California, store and surveyed the sales floor. Ambient lighting was subdued while hidden halogen ceiling lamps artfully spotlighted merchandise and signage. Display cases made from polished exotic woods projected visual warmth and sophistication. A harpist played Mozart crisply in the background. It was just over a week into January 2010, and the store, swept clean of holiday decorations, had bright spring colors on display. Watkins noticed many sales associates engaged with customers, but foot traffic was below expectations for a Saturday afternoon. Her cellphone rang. “Linda, I got your voicemail. Raleigh & Rosse is being sued by its sales associates in a class action lawsuit?” asked Brian Rosse. He could barely contain his anger. Watkins moved to a quiet corner of the sales floor. “Sorry, Brian. R&R was served notice late Friday,” she said. “Looks like it’s a rehash of the ‘working off the clock’ charges that we dealt with last year. Logan [R&R’s general counsel] isn’t too worried about the merits.” “But think about the negative publicity, the damage to our brand and image!” “We’ve already engaged our PR agency to work on communications strategy. This is not great news, Brian, but I’m determined to find a way to manage it. Why don’t we discuss the...
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...SWOT Analysis of Gucci Strengths The strength of Gucci is in its established, very strong brand image and international presence. Gucci has also the ability to control its distribution channels. This is part of Gucci’s defensive strategy in the chain value to capture the value added instead of giving it to the middlemen such as suppliers and retailers. The company has also increased the number of their Directly Operated Stores (DOS) as part of the defensive strategy of taking more control of the distribution process. The 2003 figure showed that DOS accounted for 61.3% of revenues compared to a much lower 32.5% in 1999. Its aggressive strategy accomplished through diversification and communication is also another of Gucci’s strengths. Gucci changed its strategy of carrying a single brand to branching out to a multi brand group. This strategy is also adopted by other conglomerates such as Louis Vuitton and Prada. Some luxury companies use the strategy of focusing only on one brand and add other business segments such as what Armani, Polo Ralph Lauren, and Versace did. Read on Discount Luxury Brands Big luxury brands offer discount and cheap luxury products under tough economic time. This strategy is done in order to allow the positioning of the brand in the industry to differ depending on the number of brands and the number of business segments the company wants to compete in. This is the idea behind focus (mono brand) versus diversification (multi-brand). Gucci Group...
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...Louis Vuitton Moet Hennessy Write Up Introduction: The Rise of LVMH Louis Vuitton Moet Hennessy (“LVMH”) was formed in 1987 when Louis Vuitton, a leading luxury fashion brand, formed in 1854, merged with Moet Hennessy. Moet Hennessy had been formed in 1971 when Hennessy, a cognac manufacturer, merged with Moet et Chandon, a high end champagne producer. This formation of LVMH would signal the creation of one of the world’s most profitable and encompassing luxury goods conglomerates. In 1989, Bernard Arnault would enter the picture, become the major shareholder of LVMH and take up position as chairman. An entrepreneur and art admirer, Arnault had amassed a personal fortune in real estate and in other luxury goods markets before purchasing the majority share of LVMH. Under him, LVMH would grow exponentially, acquire even more brands, expand into new markets, and see unprecedented growth. By the late 1990’s to early 2000’s, the company would be posting net revenues in the billions of Euros, comprise some fifty sub companies, all of brand names synonymous with high end fashion and luxury, and have over 1,500 retail stores operating in every major market on a global level. LVMH became the parent company to some fifty sub companies across a variety of different product industries and types. All were owned by the same company, but most operated independently and, in some instances, were direct competitors of each other. Regardless, each company no matter how different had...
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...During the last decade, Coach has emerged as America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves, fragrance and fine jewelry. Continued development of new categories has further established the signature style and distinctive identity of the Coach brand. Together with our licensing partners, we also offer watches, footwear, eyewear and fragrance bearing the Coach brand name. Marketing Environment Coach has many competitors but their top three competitors are Dooney & Bourke, Kate Spade and Michael Kors. Dooney & Bourke started in 1975 and is an American made brand; Kate Spade was started in 1993 and is also an American brand and lastly, Michael Kors which was started in 1981, is and American brand. Coach reaches a larger demographic compared too many of their other higher-priced competitors, such as Louis Vuitton, Prada, Gucci, Cole Haan and Dooney & Bourke, because Coach says that they are “affordable luxury”. These competitors are focused on a higher-fashion, higher income demographic than Coach is. Dooney & Bourke and Cole Haan also stress “accessible luxury” which makes them Coach’s key rivals. Coach continues to be one of the best recognized accessories brands in the United States, and is actually the leading American manufacturer and retailer of leather goods, accessories and apparel for women and men. The largest...
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.... Tiffany and CO. A case study presented by: Ben Turkia Emna For MGMT 6000: Marketing management Harvard summer term Synopsis Prince charming on his white horse, Cinderella and her glass shoes, princesses, fairy tales…. Are strong definers of pop culture and perception. Those symbols learned and adopted during a girl’s childhood translate into brands and product as that girl becomes a woman some brands have done a very good job capturing these concepts and translating them in a marketing proposition: the Vera Wang dress, The Louboutin shoes and of course the tiffany’s six prongs setting diamond ring are part of the myth they are part of every women’s dream wedding. Like everything born in New York tiffany has a strong mythic history founded in 1837 by Charles Tiffany, the brand became since its first day a destination for luxury and uniqueness, reinforced by its founder commitment to high end unique world renown pieces such as the tiffany’s yellow diamond – a 28 carat unique stone- or the French crown jewelry he acquired the brand gained very quickly a unique identity associated with the world’s best pieces of jewelry. The tiffany’s brand today: In 2012 tiffany launched a new product Rubeto to celebrate its 175th anniversary this new metal called rose gold is in the fact a composite made only from 31% of gold and a mix of other metals featuring essentially copper. Despite its very low concentration in gold the Rubeto collection retails for over 7000usd a piece. (FORBES) ...
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