Armani Case Study

What would be the effects on the markets in general of a temporary withdrawal of all media advertising by Armani?

Introduction

Armani is a huge company brand, which contains a high density, reach ability and diversity. Their brand is venturing into different product lines to wide the market share and gain popularity and acceptance from its target customers. Armani is a global fashion and luxury brand which contains one corporate brand and five sub-brands, as their advertising in world while, each sub-brand are catering to different target audience and different price levels, not only promote the new product, they mainly maintain high awareness, increase the brand image by mature, wealth, sexy, classy etc.

At the present time, perfume industry growth at a peak time, one of the reasons is the high profit margins, cited by Daily Mail in the UK, the cost of perfume actual production and ingredients is only three percent of the ninety-five percent of total profit of the company that selling perfume. Therefore, the competitors such as Jack Wills, Hollester, Burberry and etc. are expanding the product line to include fragrances. Although the number of competitor is increasing, Armani gets the benefit of standing on the top of perfume market. The adverts of Armani perfume appear to be more popular, compare with Armani jeans, which aims to bringing attention to the brand, but also its direct sales and promoting the new products. In the brand image building, Armani perfume plays a very important role. Moreover, differentiate tangible and visible product, advertisers try to use the sense of smell-related images, for example flowers, fruit garden, ocean and etc. also the design of the bottle outlook is a metaphor of perfume. Anthony S...

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...ago until now, TV advertising seems an universal promotion tool, it increased the sales and expanded the market which brought benefits to both micro and macro aspect. The argument between strong and weak theory : AIDA and ATRN theory, shows how important of advertising. Moreover, Ehrenberg & the leaky bucket effect model supported that Amani should spend more for customer retention rather than attract new customer. In the light of Share of voice vs. share of market model, Armani perfume can occupied a portion of market whereas TV adverts is not that highly influential. In fact, find the appropriate time is the main factor to withdrawal of advertising correctly, it can bring the sustainable effect cited by Adstock theory, furthermore other advertising mix tools can be use to instead TV advertising withdrawal to reduce the cost and benefit brand awareness and equity.