Giorgio Armani's Brand Diversification - Case Study Example

This paper will firstly provide an introduction to the company that has been chosen, i.e. Georgia Armani. The section will be followed by a review of the literature on brands and the brand extensions. This will help provide a base to understand the Georgia Armani’s brand extension from luxury products into the hotel industry. A through the explanation of brand extension and its various types has also been included in the paper. The paper also deals with in detail, about Georgia Armani, the brand and its various products.

Also, its latest new expansion of moving into the hotel business has also been discussed here. Before moving into the main issues that Georgia Armani faces in terms of the brand value, the essence of the brand, and also an identity of the brand, it is essential to understand the topic of brands and brand extensions.  The paper aims at discussing the basics of brands and the theory of brand values, as well it covers the concept of brand extension. Most studies have usually concentrated on goods sector, because “brand extension is using the leverage of a well-known brand name in one category to launch a new product in a different category” (Brand extension research, 2009).

As discussed earlier, the company that has been chosen for this research is Giorgio Armani. Before moving into the actual extension that the company has made, and the issues that relate this, it is essential to get a brief overview of the company and the brand itself. Giorgio Armani is one of the most well-known brands across the world, with the most diversified image. Giorgio Armani is a ‘one – man band’. It has been led by Mr. Giorgio Armani, an Italian designer who hails from Piacenza.

Armani controls the business side of his empire and has been one of the world’s best businessmen. He has been the only designer to be able to combine designing and other luxury goods into his company portfolio. He has been known to take risks and has been the first designer to start an event to dress Hollywood stars and to move into celebrity marketing (Davies, 2002). Armani has been able to create a statement for himself with his simple and straightforward approach to the industry. He owns his company completely and has no heirs or anyone to succeed him.

Armani believes in being stylish and yet being comfortable. In one of the interviews he mentioned, ‘Men can dress normally but with fabrics that allow him to be more relaxed. Men shouldn't be afraid to wear a cashmere jacket with woven threads of polyester that allow for more movement’, in response to the solution for men in the current times (Passariello, 2006). Giorgio Armani has been led with style and class and the need for comfort at all times. This has been the basis of the designs and all the products that the company deals with.

The company heads the international fashion empire which has been estimated to be almost $1 billion and the company operates over 2000 stores across the world. The name Armani is also represented by more than 20 licenses and has a large joint venture in Japan as well. Armani also holds 100% ownership of ANTINEA which are the manufacturers of Emporio Armani. Armani has a number of other investments as well in companies like SIMINT which are the manufacturers for the jeans and the basics of Emporio Armani, INTAI which produces the ties for the company, and LUXOTTICA which produces the eyewear for the company.