1 Their desired positioning for Gucci is to create a luxury goods firm with limited distribution targeting exclusive clientele and reinvent Gucci as classic brand . They wanted to reduce over distribution , over expansion and product availability everywhere . They wanted to get rid of images / an image / the image that anybody can own a Gucci product and bring back the premium product image . Their target customers were classic , older , conservative and exclusive clientele in upper reaches of market with high brand loyalty . They were right about bringing back luxury product images but they reduced one too many products too fast without any replacement products . They were right about reducing numbers / a number / the number of products because …show more content…
the tradeoff didn 't pay off and their high prices resulted in a huge drop in revenues . They distribution plan also backfired with closing so many American stores at once . Dawn Mello 's biggest strategic blunder was picking style instead of fashion which changed customers perception of Gucci . they strategy didn 't include what customer wants and their perception of Gucci . 3 . Industry Profit Potential (1989 ) : Buyer power was high with bargaining power and customer was not price sensitive , very demanding , selective and don 't care about switching costs . Supplier power was medium strong with unconsolidated suppliers on high quality products . They had to train and invest heavily in suppliers to create a loyal supplier base . With spates / a spate / the spate of acquisitions and big players trying to acquire small players , internal rivalry was very high . Gucci 's main competitors were Prada and Louie Vuitton . Threat to / from entry was low in/on high entry barriers like established brand images controlled by major players . Substitutes were almost low in/on none
“The Miles and Snow’s typology is based on the idea that managers seek to formulate strategies that will be congruent with the external environment” (64). There are four types of strategies that can be established under this typology that is, the prospector, the defender, the analyzer and the reactor. While prospector is innovative and risky, the defender is conservative and concerned with stability. I have mentioned above that HBC is now able to compete with premium brands retailer due to an acquisition of Saks Fifth Avenue, and yet they are not utilizing low-cost leadership as their main competitive strategy. Nonetheless, Daft and Armstrong showcases a perfect example of the defender positioning using HBC’s case. “HBC has carefully monitored its margins and spending, maintained its discount brand (Zellers) in order to successfully compete with Walmart, and survived as one of Canada’s only two national department store” (65). Then they further describe how HBC refurbish its brand, “HBC hired Bonnie Brooks in 2008 to revamp its brand”, “She dropped many underperforming product lines and brought in trendy product lines such as Coach and Top Shop” (65). This explanation also supports my
Costco company previously named Price Club has seen the first opening in 1976 in California with very challenging prices and bulks packaging. During the first 10 years they expend all around the country with huge warehouses in most of the principal destinations, located in premium location and a large economy of scale, and as well an expension in Canada with the first warehouse in British Colombia. 1992 will represent a big turn for the company with the first international opening to the first Price Club in Mexico, one year later they open the first warehouse in Europe precisely in Essex, England. The technique that Costco for the international management can be described as agressive, with a large general growth
Facts of the Case: In 2008, Samantha Elauf applied for a job at Abercrombie & Fitch, Inc., who as part of their “Look Policy” prohibit the use of caps. Elauf, as part of her religious practice, wore a headscarf to the interview. She was interviewed by assistant manager Heather Cooke, who gave her a score that qualified her to be hired. Cooke, however, was worried that Elauf’s headscarf was against the store’s policy and called her district manager Randall Johnson. She informed Johnson of her belief that Elauf wore her headscarf because of her religion, and Johnson replied that headwear whether it was religious or not violated the “Look Policy” of the store. Elauf with the help of the EEOC sued Abercrombie on the grounds of religious discrimination. The U.S Equal Employment Opportunity Commission (EEOC) is an agency established by the government of the United States that imposes federal laws that make it
Offering special products is marked under strengths and opportunity; however, long term sustainability must ease the weaknesses and threats posed by competitors and external markets forces. However, they are several other strengths of this company that outweigh the weaknesses but can easily be threatened. Lululemon has a great brand equity and knowledge in the market which has helped them development a customer loyalty. While Lululemon’s strengths is challenging, limiting their products to a special market, with higher than normal prices opens the markets for competitors. Lululemon has several weaknesses, they only offer a specialty product and it mostly aimed to attract woman. The company’s profitability has decreased over the recent years, showing the necessity for Lululemon to sustain its economic growth through product diversification and geographical expansion. Many of their competitors have grown, mostly likely due to their global growth and divarication. If Lululemon would expand their market growth this would open up so much more opportunity for this company to grow. One of their weaknesses is there is the dependence on suppliers. This opens a great opportunity for Lululemon, right now they are heavily relying on suppliers around the world and they do not have their own manufacturing facilities. This is causing the company to spend more money of vendors to
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
Roxie Photography is a photography business located in Fort Wayne, Indiana. Roxie Photography specializes in Newborn Photography and Boudoir Photography. The company is new to the Fort Wayne Area, having moved to the area from Guam. Roxie Photography owns a physical location, on East State Boulevard. The company currently offers two services, Boudoir sessions and Newborn sessions. Roxie Photography’s main focus is on the Boudoir service.
Marketing 3.0 is the stage when companies shift from consumer centricity to human centricity and where profitability is balanced with corporate responsibility. Kotler (2010 p. xi).
The principles of marketing (The Times 100, n.d) are a range of processes concerned with finding out what consumers want, and providing it for them. This involves the ‘4ps’ of marketing; price, place, product and promotion. The product decision in any company involves dealing with goods that should be offered to a group of customers (Jobber & Ellis-Chadwick, 2012). Burberry maintains a product line with great width and scope in which their products fall into two main categories; fashion or continuity. Their fashion products are designed to be responsive to fashion trends and are introduced on a collection to collection basis (Burberry, n.d). Continuity products however have life cycles that are expected to last for a certain time period. Burberry also has 3 primary collections; womenswear, menswear and accessories, with the variety of products they can utilize their product mix greatly. Burberry also has...
Case Study: Victoria's Secret OVERVIEW Victoria's Secret, one of the world's most recognizable fashion brands, established itself in the Bay Area in the early 1970s. Originally owned by an ambitious Stanford graduate looking for a comfortable and high-end retailer to buy his wife lingerie, Roy Raymond opened the first store at Stanford Shopping Center. Styled after a Victorian boudoir, Raymond's success prompted him to open three other locations, a catalog business, and a corporate headquarters within a few years. His inability to balance finances with his creative vision, Roy Raymond fell into trouble and was forced to sell his company for the small sum of $1 million dollars to The Limited, an Ohio-based conglomerate owned by Les Wexner.
One of the most successful clothing brands in the world, Polo Ralph Lauren has built its success around more than just its line of luxurious designer clothes, but the company is one of the top marketing designers also. It was awarded “ Luxury Brand of the Year” in 2010 by the Luxury Daily. A company that was founded by a man named Ralph Lifchitz, better known as Ralph Lauren of the Bronx, New York in 1968. Since the age of 12, Lauren’s had a strong appeal and taste for looking classy. He would spend the money he earned working with his father after school, purchasing expensive suites. In his latter years, while working for a company called A. Rivetz & Co., Lauren began designing wide ties, the beginning of what latter evolved into the giant clothing empire known as Polo Ralph Lauren. The success of his designer ties caught fire quickly, retail giant Bloomingdales was the first company to endorse Ralph Lauren’s ties, but that ended quickly, when Lauren refused to narrow his ties, and stuck to his product line. Lauren’s success in the designer clothes business was unusual for someone who studied business at City College. In 1968, he founded the company Polo Fashions, a company that would later expand its market, and is among one of the top designer brands in the world today.
Yes, I agree with this statement. Brand X’s main problem was that they did not understand the cultural and market differences between their operations in the West and in China.
Miuccia Prada once said that “What you wear is how you present yourself to the world, especially today, when human contacts are so quick. Fashion is instant language”. Miuccia Prada and the Prada brand have grown from humble beginnings making quality leather goods to a public traded company with a current market capitalization of over $26 billion (USD) . With the development of Prada as one of the world’s premier luxury brands it provides an excellent case study to examine how strategy paved the way for the success of the Prada brand. First, an examination of Prada’s strategic positioning against luxury brand rivals Louis Vuitton Hennessey Moet (LVHM) and Kering (Gucci). The acquisition history of Prada will be reviewed, where some preliminary conclusions can be made about what has been contributing factors to both the successes and failures. Then finally, an evaluation of what the future holds for Prada and the sustainability of its competitive advantage.
Renowned psychologist Sigmund Freud posited in 1925 that sex is one of the most basic and primal human instincts and that it is a driving force in the everyday life of a human. Advertising agencies across the globe appeal to this basic instinct or id, in Freudian terms, in order to draw the attention of potential buyers to their product. Italian fashion house Gucci is no different and offers a prime example of this method of marketing. In 2011, the company launched an advertising campaign for their newest line of perfume and cologne: Gucci Guilty. In their print ad, Gucci uses contrasting elements of light and position, and appeals to envy in order to evoke the primal sex instinct of prospective buyers in an attempt to persuade them to purchase
The period success of GAP had taken a turn since 2002. Profits and revenue continued to decline. From 2008-2010, just in U.S, 6000 retail stores had been closed because of the financial recession; during this period, Gap closed more than fifty of its 3251 stores. The annual income of GAP had also been successively overpassed by ZARA in 2008 and H&M in 2009, which dropped down to the third in fashion industry (Liu, 2013). And continually, the company’s net income declined to $833 million in 2011, which is 17% less than it earned in 2010 (Exhibit 1) (Ciasullo, Blauvelt, & Lambert, 2012). In U.S, the largest market for GAP, the elder generation who bought Gap products in 1990s had gradually left Gap for different requirements with the increasing age, and Gap was unable to keep its success with the younger generation. In addition, although Chinese market currently has been the second largest market for GAP Inc., they still operate the GAP brand as a follower without any distinct positioning str...
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. A significant differential advantage can lead customers to focus on product benefits other than price. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors.