Luxury Retailing and Distribution Management - Ralph Lauren and Prada - Case Study Example

Luxury Retailing and Distribution Management al Affiliation) This paper focal point is the analysis of the global marketing and distribution strategies for the luxury brands: Ralph Lauren and Prada. Ralph Lauren History The brand is named after its originator, Ralph Lauren. Ralph began his journey in design in 1967 when he got a job working in the tie company, Beau Brummell as a designer. His creations were notably different as they compromised of multiple colors that contrasted the dark ties that were made at that time. He received a loan of US$ 5000. In 1968, Lauren went on to launch his own company that was known as Polo. He produced sportswear that had a mixture of both English and British Orientation. The line enjoyed immense success and this saw him go on to launch his own women’s line in 1971. As time has passed on it has launched into children’s wear, footwear, colognes inclusive of other merchandise. His first retail store in 1971 was located in Beverly Hills. He went on to establish a sum of 116 stores within the United States. His introduction of a large retail store in 1986, housed in the then Rhine Lander mansion, broke news all over the fashion world. Experts claimed it was the best store in America. The consumer population responded positively to the stores and by 1997, Lauren was the largest selling designer in the world earning an average $5 Billion annually. In 1995, Lauren refocused his attention on women’s clothing. This time, he went into the competitive domain - blue jeans market. He also indulged in the production of women’s clothing on a large-scale platform. This earned the brand new customers all over the world because the new designs were in comparison, much more affordable and suited to various consumers. In 1996, Ralph Lauren made history again with its home collection that earned US$ 535 Million, which was larger than any other designer in the world was. In the same year, the brand launched a line of paints that came with instructions on how to go about with the exercise in order to create an attractive and conducive living environment. The year 1997 saw investors engage each other in dire competition to help the brand place itself on the stock market. In 1998, Lauren went on to announce that the company would contribute $13 Million to the Washington DC Smithsonian institution in a bid to ensure that the 1812 original American flag was preserved. In the same year, he received an honorary award for his efforts and contribution in the struggle for the achievement of a cure for breast cancer. Experts say that this award, though not intended to, steered consumers towards the brand more. In 2000, the brand established the website www.POLO.com that allowed Consumers all over the world to access its products. The brand is also associated with other charitable endeavors such as Polo Volunteer Program and the$5 Million Investment into the Ralph Lauren Center for Cancer Prevention and Care that is a part of North General hospital in New York. The brand has created a unique outlook of its self. Ralph Lauren has received a lot of recognition in his field garnering under his belt, 7 Colty Achievement Awards, a Lifetime Achievement Award and a Woolmark Award. Strategic Development The brand has incorporated the originators’ orientation into it. Firstly, the United States orientation can be observed in the chic trends that the brand constantly innovates. The American market is always changing and the brand is always evolving with the market. The brand has for instance incorporated a lot of use of denim in previous years as denim use has become more common in the American populace. The brand has made it a point to ensure that the consumer population is aware of the fact that it started from the humble beginnings of a tie company in New Jersey. This has endeared the population to understand that the rise to what it is today has not necessarily been easy. The brand symbol for Ralph Lauren is that of polo horseman with the brand’s name appearing on either side. In this logo itself, the brand educates the public on what it constitutes. The inclination towards polo as a sport is representative of the fact that its first product was a polo line. Secondly, it projects the image of youth, physical fitness and sharpness. This gives the brand a quality of youth and timelessness. In the qualities within the symbol the brand proves that what its stands for cannot become outdated for time immemorial. The brand first attribute is that it is firstly, timeless. The brand has been in existence for a very long period and yet has managed to remain relevant and the top of the fashion industry. Although with a few incorporations, the larger part of the brand has remained fairly the same. This proves that even as time progress, the brand will remain fairly the same but relevant making it timeless. The incorporation English fashion and the fact that the brand has earned the respect of more than one generation have made it classic and luxurious. The brand’s functional benefits are that it offers a luxurious lifestyle through its high quality items. These items are ones that have been produced with the best quality products, the highest precision and utmost professionalism. Its psychological benefits are that it allows one develop their self-esteem through acquiring the brand. Society is well aware that the brand is luxurious and therefore being spotted in one of its designs earns someone a certain amount of approval that builds on their esteem. The social benefit is that it allows one express their taste –people can understand what a person represents through the brands they incline towards; it allows them understand their personality. The brand’s tonality is that it is firstly, charitable. This illustrates that the brand is interested in humanity’s greater good. The brand’s involvement in cancer awareness and prevention appeals to the hearts of the population illustrating that it has other interests apart from business prowess. The brand’s family orientation also gives it an upstanding image. People like to know that there is a foundation upon which success is founded and Lauren has constantly expressed that his foundation is his family. It also represents glamour, an aspect that humans are for the most part, in awe of. While the brand was originally targeting the upper class, it has evolved to be inclusive of the upper middle class. In this way, the brand is able to appeal to a wider audience. This improves the most important factor as with any other objective; profits. If one is able to reach out to a larger audience then they are able to bring in larger profits. However, with the success that Ralph Lauren has enjoyed it could be per taken that this is now only a secondary concern. The creation of a favorable image was also established through this transition. This is because it illustrated that the brand was not as standoffish, closed off or only focused on the rich and famous. The message that this transition laid out was that although Ralph Lauren is affiliated with the rich and famous it is a brand that appeals to all that are interested in quality clothing. Originally, the brand was masculine oriented. However, the brand has evolved in to one that is inclusive of both males and females. The brand is able to reach out to various aspects within masculine and feminine lifestyles. In the masculine regard, it appeals to men’s official interests. This is through provision of finely tailored, elegant and sophisticated designer suits in collections such as Lauren for Men and Purple Label – fall 2009. The designer also appeals to the men’s’ sporty and casual sides through collections such as Polo Ralph Collection and Black Label-Fall 2009. It also fulfills both interests for women in Lauren by Ralph Lauren and Blue Label Collections respectively. Ralph Lauren has illustrated the importance and the steps that achieve evolution. Ralph Lauren was successful in the 1970s and in 2015; it is relevant. This illustrates a mastery of the evolution of humanity and how its effects on lifestyles. The brand has been termed as being the epitome of innovation and flexibility in fashion. However, in keeping up with modernity Ralph Lauren has not changed its preference for traditional tailoring. Rather it has mixed this defined traditional tailoring with the now more common designs that represent modern elegance. In this way, the brand has demonstrated that it intends to say true to itself but is willing to be flexible to the desires of today’s generations. Ralph Lauren has also grown substantially as a brand in terms of being able to meet various needs all at once. Rather than stick primarily to fashion, the brand has ventured into other lifestyle necessities. In this way, consumers can have a piece of the brand with them in whatever regard they would wish. This illustrates that the brand is willing to challenge itself out of its comfort zone. This has ensured that the brand finds a place in millions of consumer homes in the most basic products such as paints. Ralph Lauren ventures are Men Clothing, Women’s clothing, Children’s clothing, Sportswear, retail concepts, fragrances, home collections, paints and accessories. It is also involved in a number of public relations activities such as corporate social Responsibility through cancer treatment programs and children healthcare programs. Prada History Prada is of Italian orientation and was established in 1931 by Fratelli Prada and Mario Prada. The brand was originally named after the latter. At the time of establishment, the brand established a name for itself in the accessories market in Italy (Moore, 2010). The first step that came about was the establishment of the boutique for the brand that was situated in The Galleria Vittolio Immanuelo shopping arcade that is in Milan. As from the time that the arcade came into existence in 1877, it has been associated with retailing on a premium basis. Today, the arcade has become home to several outlets but Prada retains a prominent feature in it. The brand focused on ensuring that they meant the needs of the elite consumer through creation of travel accessories that were manufactured exclusively using leather (Moore, 2010). The brand became involved on an official capacity with the Italian Royal household and this went on to build a favorable image for it. With this newly established relationship, Prada earned the right to have the knotted rope insignia as well as the coat of arms into the final outlook of its logo. This cut a niche for Prada in the market because of its affiliation with royalty. In 1980, the CEO, Miuccia Prada, ventured into clothing and footwear. In the spirit of maintain the image that the brand had already created through accessory production, she developed a line that was engraved in class. She ensured that her products were specifically focused on ensuring that movement, although encompassed with class was not constricted or painful. Miuccia was described many a time as being free spirited. Fashion experts asserted that her freedom of thought speech and action could be identified in the then creations that Prada brought into the market. The fashion term “avant-garde,” became a constant in reference to Prada’s pieces. Until the 1980s, Prada retained a domestic approach with only one store in its name. Bertelli, Miuccia’s husband opened the company’s second store in Via della Spiga in Milan. The second store was representative of a new outlook that Prada had a modern test while retaining a traditional architectural form. It is in this store that the pale green color that is representative of Prada first came into existence. However, up until this moment, Prada was not doing very well in the market. The creation of waterproof nylon bags became an instant success and established the breakthrough into the market that Prada sought. The bags went for a rate of 250 Euros. Rather than destroy the demand that the brand had garnered this went on to increase it. This is because designer knock offs of the brand began to appear and this made the acquisition of a genuine one much more important. Jerry Hall and Marie Helvin featured the bags on their program and were identified as the preferred brand for supermodels. This was followed up by the launch of stores in Tokyo, London and Paris. The rise of Prada from then on has been consistent. Strategic development From the very beginning, Prada established itself as design brand focused on primarily on women. Although some of its products have overtime incorporated elements it has not diversified from this. In this way the company is able to focus more on one demographic of people and study them effectively. The one outstanding point that can be drawn from this is that through the sole focus on one particular group of people for a substantial period, one is able to understand them effectively and create fulfilling relationship with them in time. This reduces the areas of study and makes their work much more precise. This is not to say that had Prada been focused on any two or more demographics earlier on, they would have been unsuccessful but rather that because they did not, they had an added advantage. Prada relies on its own production. Prada has had its own chain of factories as well as well linked and established network of third – party distributors all around Italy. This firstly allowed the company the ability to control its own Cost structure. In this way, the brand is able to ensure that any expenses incurred are well within the limits that it has set for itself. Furthermore they are able choose the specific products of manufacture and utilize them efficiently and sparingly. This has gone on to ensure that Prada products are made with specific precision. This factor has cut a niche and given Prada competitive advantage over competitors such as Gucci and Ralph Lauren who do not control their production process. The incorporation of personal spirit is one that Prada has taken to heart. The brand has constantly been termed as a representation of the personality trait of Miuccia Prada (Moore, 2010). This makes the brand more interesting and solid as it has a background and solid foundation upon which it is based. Miuccia Prada constantly asserted that it was her desire for travelling in good quality luxurious pieces that fuelled her passion. In this regard, she got personally involved in the production process in Prada. Miuccia has championed feminism from a fashionable sense. She aims to ensure that every woman in whatever regard she fulfills her duty has the opportunity to look glamorous. For season on end, Prada has been able to influence other designers through Miuccia innovation. Miuccia Prada was an interesting phenomenon to the world and in return, Prada became a brand of interest. The incorporation of her personality therefore went a long way in creating the brand that Prada is. In its strategy, Prada discovered that rather than affiliate themselves with celebrities whose popularity fluctuated with seasons, such as supermodels, timeless titles were a much better endorsement. It is in light of this that Prada became associated with Italian royalty (Moore, 2010). This is what propelled to gain a significant position in the hearts of the Italian population. Experts state that this affiliation is one of the most important strategic elements that Prada ever laid out. However notably after the affiliation, Prada took a long time before affiliating itself with any other persons of influence demonstrating severe critique for the persons they intended to represent their brand. The development of a diffusion brand in 1993 was one unique line of business that Prada chose to venture into. The brand was named after Miuccia’s nickname. The establishment of the brand proved that Prada was well aware of its own shortcomings. Although at the time Prada was very successful with the older female clientele, they were not as successful with younger clientele and hence the establishment of Miu Miu. The diffusion brand had more vibrant color combinations. This was in direct contradiction to the more reserved outlook that Prada had retained. In this way, they were able to cover a gap that they had created with their target audience. The combination of Miuccia and Bertelli is the most important strategic factor that the brand ever took on. While Miuccia was more accustomed to the fashion industry Bertelli was business and economics oriented. Miuccia oversaw design layouts and productions while her counterpart oversaw distribution and marketing. With the combination of these two areas of expertise Prada was able to break into the market with much more ease. Notably it was not until Bertelli came into Prada that the brand was able to take off and expand out of Italy fully. Prada chose strategic locations from which it launched its stores. The brand focused on cities that were strategic positioned, were taking on globalization and had the attention of the world. The cities were such as Tokyo, Paris, and New York. Rather than start its expansion process with smaller settings back home, the company went all out and established and from which they could rich people of various orientations. With time, the brand gained a huge following .Prada’s willingness to take risks can clearly be envisioned in this move. Prada is arguably the most successful brand when it comes to the use of art as a platform for expansion. In 2005, the brand developed the film Thunder perfect Mind that was showcased in the Berlin film festival; although this gained it widespread attention, it was not until the use of the brand’s name in the movie The Devil wears Prada that the brand really catapulted. The movie featured renowned actors, Anne Hathaway and Meryl Steep and this acted as an indirect endorsement. Furthermore, the movie was more popular with the brand’s main target audience- the feminine population. Rather than simply getting involved with film work on a costumier basis as do most brands, Prada invested itself more in art and it paid off. Prada and Ralph Lauren have various similarities but are also different. While Ralph Lauren has focused a lot affiliating with its founder, Prada has been more business oriented. Ralph Lauren operates on the emotional loyalty it draws from its consumer population and reputation of the man, Ralph Lauren while Prada focuses on its long-existence, its experiences and the history it has laid out or its audiences. References Moore, C. S. 2010. The evolution of a luxury brand: the case of Prada. International Journal of Retail & Distribution Management , 915-927. Read More