Analysis on Case Study Marketing Assignment
“Pos “P osit it ion in g Value Prop Prop os osit it ion - Product; App arels arels””
B rands rands;; Arm ani , Zara & Raym onds
Faculty:- Prof Sanjeev Tripathi Programme :- AFP 2014 IIM Ahmedabad
Syndicate Members:1. 2. 3. 4. 5. 6.
HRIS Assignment
Yogesh Chaudhari Uttam Rajan Nikhil Srivastav Sanjay Bhatia Makarand Alur Puja Priya
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7. 8. Puja Priya
Table of Contents
Table of Contents ...................................................................................................... 2 1. Introduction........................................................................................................... 3 1.1 Executive Summary ..................................................................................................................... 3 1.2 Methodology ................................................................................................................................. 3 1.3 Brands Identified .......................................................................................................................... 3 2. Positioning & Value Proposition ............................................................................ 4 2.1 Intended Target Segment ......................................................................................................... 4 2.2 Key Value Proposition, Similarity & Difference of Competing Brands ..................... 4 2.3 Ad Campaign in India ................................................................................................................. 5 2.3 Supplementary Information ..................................................................................................... 6 3. Strategic Marketing Implications ........................................................................... 6 4. Appendix(Advertisement in Print Media) ............................................................... 7
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1. Introduction 1.1 Executive Summary
The luxury apparel brands analysed for their Value Proposition and Brand Positioning are Armani, Zara and Raymonds. The target segment for Armani are the uber rich, while Zara is for the upmarket who can otherwise not afford the luxury brand per se. Raymonds targets the premium segment. The value proposition offered by the three brands are distinct namely: Armani; A classy modern yet traditional luxury fashion brand that reflects the high society, Zara; offers simplicity and fashion to customers with greater range and latest style at affordable prices, simultaneously projecting itself as a premium brand, Raymond; provides high quality fabric/Ready to wear formal dressings which projects an image of Loyalty, Community, Attachment, Relationship and a sense of class. 1.2 Methodology
Literature review was undertaken covering the various library resources such as journals and publications. The information available in Europassport and WARC was also reviewed. The information available on the internet was also considered to narrow down the luxury Apparel Brands and their competitors. Thereafter, an analysis of the value proposition of each brand and their positioning strategy was undertaken. 1.3 Brands Identified
The brands identified for the purpose of the assignment are Armani, Zara and Raymonds. Armani. The Armani group is a leading Italian fashion group for apparels,
accessories and home interiors that has as its global competitors such as Dolce Gabbana, Gucci and Yves St Laurent. The brand has its presence in 23 countries including India. It markets its products under various subbrands such Giorgio Armani, Armani Collezioni, Armani Emporio, Armani Jeans, Armani Exchange and Armani Casa. The brand has over the years diversified into chain of luxury hotels, cafes in addition to bar/nightclub. Zara. It is a Spanish clothing and accessories retailer and founded in 1975. It has 6,000+ stores world-wide and its competitors are the likes of United Colour of Benetton, Gap and in the Indian context could be Wills Life Style,
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etc. The brand launches approximately 10,000 different styles per year, which offer a large choice to its customers. Raymonds. It is India’s largest branded fabric and fashion retailers founded in the year 1925. The brands under Raymonds are Raymond Premium, Park Avenue, Colour Plus, Parx and Makers catering for a wide range of customer section. The brand is retailed through the 700 plus retail shops spread across India and overseas in over 200 cities. It’s competitors are Vanheusen, Arrow, Vimal, Reid and Taylor, etc. The company has 60% market share in the premium worsted suiting segment.
2. Positioning & Value Proposition 2.1 Intended Target Segment
The Target segment for the identified brands are as follows:Brand
Target Segment
Armani
Targets the rich who have a heightened sense of individuality and want to stand out in the crowd and even within the elite class that they belong to.
Zara
Targets women and men in the age bracket of 18 to 40yrs, who are budget conscious professionals. Fashion conscious people who want to stay in trend but cannot afford luxury brands.
Raymonds
The sub-brands of Raymond target the entire gamut of segment ranging from the middle class to the premium section. Raymonds Fabric/ Formal wear brands target the super premium space.
2.2 Key Value Proposition, Similarity & Difference of Competing Brands
The value proposition of the brand is as follows:Brand
Competing Brands
Value Proposition
A classy modern yet traditional luxury fashion brand that reflects the high society. It fares above its competitors in that it provides greater product choices. Armani
Gucci
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Similar to Armani- modern with heritage craftsmanship. Projects itself as green and eco friendly. 4
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Competing
Value Proposition
Brands
Yves St.
Capitalize on its French origin and stakes claim being
Laurent
more creative, artistic and innovative brand The core value proposition offered is simplicity and fashion to customers. It offers greater range and latest style at affordable cost vis-à-vis its competitors.
Zara
Gap Wills Life Style
Classic, vibrant and timeless look Distinct style with sharp cuts, boardroom colours for a crisp and structured dressing for men & women Loyalty, Community, Attachment and Relationship, which is communicated by the tag lines such as “The complete man”, “Guide to a well Dressed male”, “Feels like Heaven”, “Feels Like Raymond”, “Celebrate Everyday”.
Raymonds
Van Heusen Reid & Taylor
Power Dressing Portrays class and exquisite style
2.3 Ad Campaign in India
The ad campaign of the brands tend to convey the following:
Armani. It uses fashion shows, pop stars and Hollywood movie stars, sports
persons and other celebrities such as Megan Fox, Rihanna, Ronaldo, Raphael Nadal to promote its brand. The ads are available in print media and on Fashion television channels, which exult high end fashion for the uber rich. Zara. The brand has taken a conscious decision to advertise only on social media through Facebook, Instagram, Twitter and Pinterest. It believes in ploughing back the profits into opening new retail outlets in up market locales. It focuses on leveraging the power of social media to spread awareness of the brand. A fan of retail chain Zara was estimated to be worth $405.54, whereas soft drink giant Coca-Cola wasn’t as lucrative, with a single fan being worth $70.16. The Zara website in India continues to portray foreign models, which reflects the global image of the brand and conspicuously does not have any celebrity as brand ambassador. Raymonds. The ads feature in Newspaper, Television, Banners & Hoardings. The
ads of Raymond do not use a celebrity as brand ambassador and project relations, consistency and its characteristics of roles played by men as Fathers, Marketing Assignment – Syndicate 4
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sons, Husbands. It epitomize class, reflects sophistication and finesse with values as the central theme. This is aimed at creating brand loyalty, customer relationship at subconscious level, which would translate to repeat purchases.
2.3 Supplementary Information
The details of pricing, retailing/distribution merchandizing are as follows:Armani. The prices are set high to be affordable to the select few. It is sold in core brand showroom that are in the located in the elite locales. Zara. It sets its price at an affordable range with distribution across 6000+ select stores across the world. It presently operates stores in India and has the largest sales figure in apparel category surpassing Louis Phillipe and even the country’s largest departmental chain Shoppers stop. Raymonds. The pricing is set as premium brand. It is sold from select shops as well as through multi brand outlets across India.
3. Strategic Marketing Implications
The implication are that for successful brands such as the ones discussed in the assignment are primarily due to a distinct differentiation within their segment. Thus, these successful brands provide a unique value proposition to their targeted customers. These brands have positioned themselves in a unique space.
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4. Appendix(Advertisement in Print Media)
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