Ralph Laurens Brand Extension Decision to Rugby - Essay Example

?Ralph Lauren Case Study Table of Contents Table of Contents 2 Elements Comprising the Equity in the Ralph Lauren Brand 3 2.Evaluation of the Role of Brand Association in the Company’s Success 4 3.Ralph Lauren’s Brand Extension Decision to Rugby 7 4.Recommendations to the Company regarding Stewardship of their Brand in the Future 8 References 11 1. Elements Comprising the Equity in the Ralph Lauren Brand Brand equity is considered as the ‘added value’ which is related to a product in the mindsets and activities of consumers. There are various approaches through which the additional value can be formed for a brand. In the same way, there are several ways that the value of a brand can be exploited for the beneficial purpose of the organisation (Keller, 2005). For Ralph Lauren, brand image is highly significant. Ralph Lauren sold his tie line at higher prices than that of market prices with the assumption that customers have greater preference for the product which is rendered at higher prices. It is because according to Ralph Lauren customers perceived that higher price refers to better quality. He diversified his business through own retail store to attract younger generation as well as baby boomers that can help the brand to catch the attention of the customers. Furthermore, Ralph Lauren diversified its business from menswear to womenswear in the year 1971. In the year 1972, the Polo brand was introduced in 24 colours with the tagline “Every team has its colours, Polo has 24”. This innovative promotional strategy facilitated to fabricate the brand equity for Polo. Ralph Lauren concentrated on sportswear and trendy fashion wears. He is believed to be the pioneer of ‘lifestyle merchandising branding’. He promoted his brand ‘Polo’ very strategically. By 1980, he set up seven new stores across the markets. His brand was promoted through Hollywood movie ‘The Great Gatsby’ and the costume designer was awarded Oscar for costumes. The above mentioned issue helped the brand to be recognised throughout the world. He considered the social as well as the cultural factors to enhance brand awareness in the American market (Hancock, 2009). Accordingly, in 1978, he introduced fragrances for both men and women. The aromas of the fragrances were apparently distinct and customers would prefer to be familiar with, even if they were not concerned about the clothing line developed by Ralph Lauren. Ralph Lauren made an advertisement campaign with the assistance of Weber (photographer) with an eye-catching tagline “Rough wear-it was made to be worn”, in the year of 1979, that had a strong impact on brand advertising in those days. In 1981, Ralph Lauren launched a new brand namely Santa Fe collection which facilitated the romanticism of American fantasies with cowboy outfits. In the same year, Ralph Lauren executed its own boutique in London and he became the first American designer in the European market (Hancock, 2009). Next, Ralph Lauren diversified his business towards furnishings with the tagline of “How Tradition Begins”. Each product under this segment has its own image in customers’ mind. In the year 1986, he emphasised on a flagship store in New York which can define his brands within one corporate entity. The key factors of success for Ralph Lauren are innovative ideas with the combination of networking which creates public awareness and a specific vision about the brand. 2. Evaluation of the Role of Brand Association in the Company’s Success Brand association is related with the customers’ outlook connected with brand and it reflects the strategic position of the brand. Associations can provide to summarise a set of facts and specifications that would be complex for the customer to access and high-priced for the company to correspond. Brand association can facilitate to generate brand awareness in customers’ mind. A differentiating brand association is capable to assist the organisation to obtain competitive advantage. For instance, Ralph Lauren is synonymous with higher price and better quality (Aaker & McLoughin, 2010). Conceptual Framework of Brand Association with Perceived Value of Customers Source: (Peter, 2001). Brand association helps customers to judge a product. For instance, origin of the product has an influence on individuals’ judgement such as luxury vehicles are synonymous with Toyota and others. Brand association helps to stay ahead of competitors by leaving impression of the brand upon customers’ mind (Peter, 2001). Ralph Lauren enriched his advertisement with innovative ways. He introduced Polo brand with innovative thinking of 24 simultaneous colours. He introduced a product line by posing himself in the advertisement. This aspect transcended the brand as British and also regained the attention of America. He tried to pull the attention of the US customers by modelling in the brand’s products. He was innovative in diversification of product as well as target market. The reflection of the brand is constantly expanding from luxury and quality to unbeatable fragrances. The brand ‘Polo’ had decided to modify its target market from sports centric to other segments by changing advertising style in the year of 1993. The brand endorser was Jamaican model named Tyson Beckford that helped the brand to obtain ethnic street market which enhanced the sales of products of Polo brand. The main objectives of Ralph Lauren include enhancement in market share and customer satisfaction by diversifying the product line and segment along with implementing innovative promotional strategies (Hancock, 2009). Products included under Ralph Lauren brand have great quality and style and also are expensive as Ralph Lauren had a thought that customers would perceive that higher price is synonymous with better quality. The wide ranges of products encourage customers to prefer the specific product that they actually need. Ralph Lauren identified the appropriate attribute and continued its business through diversification and expansion. Positioning a brand effectively is related to the association of the brand with its customer. Ralph Lauren emphasised on the social factors such as fantasies of American youngsters. He re-introduced his ‘Polo’ brand with a celebrity endorser. Thus, it could catch the attention of customers and subsequently, he obtained street ethnic market of America. A brand personality may facilitate to communicate the product’s attribute. Ralph Lauren acquired the brand image over the years. Brand positioning is done to gain competitive advantage. Ralph Lauren obtained the advantage by his innovative ideas for promoting the brand. He developed several innovative taglines for various product lines to draw the attention of all customers including younger generation as well as baby boomers (Hancock, 2009). 3. Ralph Lauren’s Brand Extension Decision to Rugby The products of Ralph Lauren reflect in pioneering of linking brands with the American style. Ralph Lauren believed that advertising can fabricate an image of public awareness for the brand. The brand Rugby was initiated in the year 2004 and it was dedicated to Generation Y. It was an attractive entry of Lauren’s brand in the segment of preppy garments. The Rugby line endows with new generation lifestyles in a preppy. Lauren uses skull-and-crossbones to promote the Rugby line. Certain brand associates dress ups with tattoos, body piercing and coloured hair. These are the antonymous promotional strategies taken by Ralph Lauren over its competitors i.e. American Eagle and Abercrombie & Fitch. The promotional strategies are innovative without a doubt. They enhanced their competitiveness by promoting Rugby. The product collection in Rugby store is completely different from other competitors and it emphasises on European style statement. The overall ambience of the Rugby store distinguishes its products from that of the competitors related to the same segment of preppy garments. The young generations found the Rugby store more familiar than other stores for its interior, use of light and execution of DJs. Lauren chiefly targeted American Eagle and Abercrombie & Fitch to enter in the new market segment of preppy segment. Abercrombie & Fitch exploit traditional symbols i.e. alligators and ducks which are embroidered on the garments. Ralph Lauren introduced a totally distinct theme for the promotion of Rugby brand. Though it is a trendy promotional idea, it hampers the popularity of Abercrombie & Fitch in the market. The target market of this line is specifically the teenagers. Ralph Lauren entered into the segment of preppy garments in an aggressive way. Basically, Ralph Lauren took the entry as a tug of war with Abercrombie & Fitch in this particular segment. The brand designed their strategies in such a way so that it can grasp the market. The customers always support Ralph Lauren for their quality and continuous innovation. Ralph Lauren is the pioneer of lifestyle merchandising branding in the US. They diversified their business from brand garments to furnishing and brand fragrances and the products developed by Ralph Lauren have been award-winner for years. Though their marketing strategies of brand expansion are aggressive, they leave an impression of quality and stylish products in the psyche of teenage customers. Their associates for promoting the brand that include tattoos, coloured hairs and body-piercing; also draw the attention of youngsters. Ralph Lauren is successful for promoting the brand with eye-catching advertisements which are emphasised by Ralph Lauren from the outset of his business. 4. Recommendations to the Company regarding Stewardship of their Brand in the Future Brand stewardship is to enhance correlation among customers and a brand. Brand stewardship involves the entire organisation in emphasising the promise of the brand in each measure taken by organisation that generates brand equity and facilitates the maintenance of brand equity (Speak, 1998). Ralph Lauren should follow the law of fair competitiveness. They should not target any one of the marketers to enter into a new market. There should be healthy competition between all players who play in the similar segment. Ralph Lauren has a wide range of diversified business. They should provide attention to their core competencies i.e. stylish garments and fragrances. There are certain limitations such as lower quality product can hamper the overall brand image. Also, they need to consider about their financial status. During brand extension, they have to think what actually customers expect from their brand and what suits their brand name. They have to keep in mind the rules and regulations imposed by the government of the particular country to extend their business. Many a times, it is seen that a brand is extended in a country and it has failed terribly due to government intervention. If the parent company decides to extend a brand, then they have to integrate all the employees to be successful. Wide range of product line as well as brands may loose the control over business. Therefore, they have to focus on their core competencies. They have to consider if the necessary resources are easily available or not. Several brands create the short product life cycle that adversely hampers in the financial status of the organisation. They have to think where they are planning to diversify their business and the scarcity of resources specifically the human resources in such places (Smith & Zook, 2011). Ralph Lauren introduced one-in-one stores in fashion branding. Pricing could be a challenge for Ralph Lauren for the future because the market is highly competitive and other companies are trying to sale their products at lower prices than Ralph Lauren. Ralph Lauren continued to provide its classic and trendy looks in several sub-brands. They have to focus on their flagship store in New York because it is from that store, Ralph Lauren’s journey towards success commenced. In present scenario, it is observed that several market players have greater competitive advantage than Ralph Lauren in terms of brand value. Thus, they should concentrate on obtaining competitive advantage to surpass its competitors. However, competition does not need to be aggressive always; it can also be fair competition. Previously whenever Ralph Lauren penetrated into a new market it is observed that they followed aggressive marketing strategies which may adversely affect on brand image (Schept, 2011). Continuous innovation and constant diversification into international market as well as into various segments were the success factors for the company in historical perspective. However, it has to concentrate on its strategic planning to be market leader in future. They have to acquire competitive advantage through perfect competition and not through executing aggressive strategies. References Aaker, D. & McLoughin, D., 2010. Strategic Market Management: Global Perspectives. John Wiley and Sons. Hancock, J., 2009. Brand Story: Ralph, Vera, Johnny, Billy and Other Adventure in Fashion Branding. Fairchild Books. Keller, K. L., 2005. Measuring Brand Equity. Dartmouth College, pp.1-48. Peter, N. K., 2001. Brand Associations And Consumer Perceptions Of Value Of Products. University Of Nairobi, pp.3-15. Speak, K. D., 1998. Brand Stewardship. Design Management Journal, pp. 1-10. Smith, P. R. & Zook, Z., 2011. Marketing Communications: An Integrated Approach. Kogan Page Publishers. Schept, K., 2011. Brandz Top 100. Most Valuable Global Brands, pp. 1-54. Read More