Missoni Brand Architecture - Essay Example

Introduction Most of the famous brands in the world develop from humble beginnings. The case is not different for Missoni. As a company it was started by Ottavio and Rosita as a small knitting business using fabric in the 1953, and it took over ten years to be on its feet after its establishment (“Brands: Missoni”). From its humble beginning, the corporation has been able to establish itself as a powerhouse in the fashion industry partly due to a strong management structure and a niche positioning that has helped enhance its competitiveness in the fashion world (Sirletti, Orozco, and Roberts). Missoni has differentiated its products from its competitors and set a precedent that has made it occupy this enviable position in the market. In this case, the company has produced apparel that has become a lifestyle for most people with “a colourful brand “put-together” of zigzag motifs, stripes, waves and slub yarns in a patchwork of geometric and floral jacquard” (Missoni). Consequently, these patterns have become synonymous with Missoni and they have defined the company’s operations since its establishment. Importantly, the firm has been able to combine the fame from the runway with the product providing to its market, which happens to be primarily high-end market (Gale and Kaur 11). On the other hand, Missoni has diversified as part of its brand extension, and ventured into other industries that are a continuation of the lifestyle that the company seeks to offer. In this case, it has ventured into the hotel industry and already established a number of high-end hotels in other locations being on the company’s overall plan (Jorge). Currently, the company’s lines of operation include the signature Missoni line, which is the mother company with divestment into other famous Missoni lines. These lines include M Missoni, which is a less expensive line; Missoni Sports, which deals with sports apparel; Missoni perfumes; Missoni Home collection, which deals with furniture; and Hotel Missoni (Missoni; Jorge). Conversely, the brand architecture of Missoni can be represented in a chart as shown below (see Fig. 1). Figure 1. Missoni’s current brand architecture Brand Perception Map The company’s products are principally luxurious products. These products include the services offered in their hotels and the products popular in the fashion industry. As a luxury brand, Missoni competes with various brands for high-end markets in both the fashion and hotel industries (see Fig. 2). Figure 2: Brand Conceptual Map of Missoni Brand Positioning In order to position itself competitively in the luxurious fashion industry, Missoni has taken a number of measures to ensure that it remains at a favourable position among its competitors. In the fashion industry, the key determinants of brand positioning are the pricing and the direction of the brand (Manlow 156). In line with this, the direction of the brand is the target market that the company ventures in, with some companies focusing on conservative apparel while others focus on directional apparel (see Fig. 1). On the other hand, the pricing of the products that competitors in the industry offer determines the market offering cheap products for the lower class (Carroll). For Missoni, the company primarily offers products that were conservative and luxurious in nature with these products being either in the fashion industry or in the hotel industry. However, to set itself apart, the company has carried out a number of measures that have ensured that the brand positioning was for unique and luxurious products in the competitive fashion industry. Brand Differentiation Missoni’s success has been a result of the differentiated products that it has continually offered to its clients. In this regard, brand differentiation focuses on creating products that cannot be easily counterfeited due to the unique nature of the products (Manlow 156). By creating a concept that is characteristic of the company’s theme of zigzag patterns that have been the main pattern in Missoni, the firm has made this pattern its trademark. In addition, Missoni’s differentiated zigzag trademark underwent a renaissance to produce patterns that used stripes, waves, and patchworks of geometry due to the incorporation of fine arts in their production (Missoni; “Brands: Missoni”). Personnel Differentiation Personnel’s training is an integral part of brand positioning. In this case, personnel’s training ensures that a company focuses on the trademark of their product by continually using the technology available in order to produce superior products. Consequently, Missoni has established its reputation by its personnel who are well trained to offer quality services and products in order to meet the needs of their customers. In this regard, the company’s founders established a management system in which the craft is passed onto family members who train other important members in order to sustain the business in the long-term (“Brands: Missoni”). Image Differentiation The image that a brand presents is crucial for its positioning in the market. In this case, the market offering of the brand ensures that the company achieves a favourable position with its clientele who wants to buy prestigious products. Although Missoni represents luxurious products, the company broadened its customer base in 1998 by offering a new line for its apparel known as M Missoni line, which was low-price and meant to cater for the low income earners (Sirletti, Orozco, and Roberts). However, the company has always projected an image of luxurious products in both the fashion and hotel industry. Connectively, the company’s brand, in instances whereby it has reduced its pricing, has resulted in a failure to satisfy the market demand. Case in point, the company lowered its products by half the normal price offering and entered in a deal with Target to offer its products in its stores. During the day of the sale of Missoni’s products through Target, a high demand resulted in a crash of Target’s website, which highlighted Missoni’s image in the market (Sheehy). Consequently, this luxurious image has ensured that the company positions its products for the high-end market although it also offers low-end products in its M Mission line. Overall, the brand image is correspondent to the way that consumers viewed themselves when using the product, which explains why the latter buy products from Missoni despite the pricing since the brand is associated with prestige and luxury (Chevalier and Mazzalovo 163; Okonkwo 140). Services Differentiation Offering differentiated services has ensured that Missoni positions its brand in the market as a luxurious and prestigious brand. While Missoni’s services are in the luxurious hotel industry, the company’s hotels are a manifestation of the designs, artwork, and fashion that it offers to its customers since its establishment. In addition, the services offered in the five-star hotels are differentiated since they combine various elements that provide comfort to visitors (Jorge). Competitors In terms of competition, the company has various rivals with some being direct competitors in terms of target customers and the products offered. However, the biggest threat to Missoni is Giorgio Armani. Like Missoni, Armani offers differentiated product in the fashion and luxury segment of products with the brand representing a strong brand that is unique in terms of beauty and aesthetics (Profit Magazine). Armani does not only offer competition to Missoni in terms of the fashion industry, but it also poses competition to Missoni due to its diversification in the hotel industry where, like Missoni, Armani has established various hotels that provide luxurious services to their clientele in prestigious locations such as Dubai, Milan, New York, London, Paris, and other important capitals of the world (Warburton). On the other hand, the biggest hotel by Missoni is located in Edinburgh, which is not as prestigious as the location of Armani hotels and resorts (Jorge). Other than Armani, other direct competitor includes Versace, which competes with Missoni for high-end consumers since it offers luxurious products in the fashion industry and it has diversified its operations in the hotels and resorts sector (Okonkwo 139). Recommendations Missoni should expand its operations and diversify to start a line for jewelry products. In this brand extension strategy, the company will venture into producing jewelry that accompanies their clothing apparel in order to tap into this segment of the fashion industry that is clearly dominated by its competitors. Importantly, there is a ready market for the company’s product since it has a unique design for its products. Okwonko noted such a strategy of diversification through brand extension provides a new concept in luxury branding (139). In this case, the existing and new consumers for Missoni’s products will adopt the new line of products in order to complement the fashionable that are already in place. Hence, a consumer who wears clothes from Missoni will feel comfortable while wearing jewelry from the same brand. In effect, the company will use the existing promotional and brand positioning strategies to offer the product to their customers and consequently increase its profitability and enhance its market reach. Therefore, the new line should be named Missoni Jewels with the new brand architecture shown in the figure below (see fig. 3). Conclusion Based on the foregoing, Missoni’s brand positioning is in the luxurious and prestigious segment of product offering. Despite offering products for low income earners with its M Missoni line, the company has created a brand whose main area of focus is the high-end segment and high income earners in the society. Nonetheless, through a combination of brand positioning strategies that include differentiated brand, personnel differentiation, image differentiation, and service differentiation in its hotel and resorts line of products, the company has projected a brand as a fashionable brand that is associated with luxury and prestige. Therefore, a brand extension strategy that focuses on jewelry will help the company continue with its positioning strategy and ensure profitability in its operations. Works Cited “Brands: Missoni.” Vogue. N.d. Web. 2 Apr. 2013. . Carroll, Mathew. “How Fashion Brands Set Prices.” Forbes Magazine.22 Feb. 2012. Web. 2 Apr. 2013. . Chevalier, Michael, and Gerald Mazzalovo. Luxury Brand Management: A World of Privilege. 2nd ed. John Wiley & Sons: Singapore, 2008. Print. Gale, Colin, and Jasbir Kaur. Fashion and Textiles: An Overview. New York: Berg Publishers, 2004. Print. Jorge, Patri. “An Example of Brand as Lifestyle: Missoni and its Hotels.” Tourism Revolution. 21 Jan. 2012. Web. 2 Apr. 2013. . Manlow, Veronicah. Designing Clothes: Culture and Organization of the Fashion Industry. New Brunswick: Transaction Publishers, 2009. Print. Missoni. About Missoni. N.d. Web. 2 Apr. 2013. . Okwonko, Uche. Luxury Fashion Branding: Trends, Tactics, Techniques. New York: Palgrave Macmillan, 2007. Print. Profit Magazine. “Management Giants: Giorgio Armani.” Profit Magazine. 2008. Web. 2 Apr. 2013. . Sirletti, Sonia, Jose Orozco, and Andrew Roberts. “Missoni Fashion House Seen Overcoming Heir Disappearance.” Bloomberg Report. 7 Jan. 2013. Web. 2 Apr. 2013. . Sheehy, Kate Rush. “Missoni, Marketing, and Moving the Needle.” Dachis Group. N.d. Web. 2 Apr. 2013. . Warburton, Sophie. “Giorgio Armani Opens his Second Eponymous Hotel.” The Telegraph. 11 Nov. 2011. Web. 2 Apr. 2013. . Read More