Consumer Exploration for Armani Brand - Case Study Example

Introduction Giorgio Armani S. p. A. is one of the most well recognised clothing brands worldwide. It was an Italian company started in the year 1975. The company deals with a wide range of fashion items with labels such as Armani Jeans, Armani Casa, Armani Junior, Emporio Armani and many others. These are mainly clothes but also include accessories. The company has three hundred stores on about thirty countries in the world. Several of these are found in the UK. Armani Company also focuses on other businesses like the hotel. There are several hotels under this name. Situational analysis of the company The situational analysis will be examined under the five C’s i.e. Company, Collaborators, Climate, Competitors and Customers (UDEL, 2007) Company-product situation There are a number of clothing lines that are under the Armani wing. These are as follows; jeans, men’s suits, shirts, tops, watches, sunglasses, jewellery and others. Customers The Armani brand has a diverse appeal because it has line catering for special groups. Some of these consumers include the mature classy kind, young trendy consumers, children, wealthy and middle income consumers. Competitors The fashion industry is a competitive industry. There are a number of industries that could be viewed as Armani’s competitors. Some of these include; Christian Dior who has received acclamation for depth in his designs, Yves Saint Laurent has received acclamation for modernity in their designs, in 2006 they incorporated Asian themes in their clothing lines. Gucci received an award for being the highest selling brand from Italy in the year 2006. Gucci has acquired a reputation in the music industry by securing a market there. Gucci also made smoking tuxedos last fall. Climate-environment The clothing line is located all over the world. This implies that there is a wide client base for the company. Economies in those countries are improving and the need for clothes has increased. This means that the market is quite receptive at this moment. SWOT analysis It is highly valued in Hollywood and fashion generally. It earns three billion euros to prove this point. It has a number of challenges that include: overstretching the line by venturing into too many products, having a strong personality behind the line- he may pass away and leave the brand hanging; it also has too many lines that may appear as if they are offering the same products. Segmentation methods The company has the following market segments. It has done this on the basis of age and social class (UDEL, 2007) Armani Collezioni: this is the second most expensive clothing line in the Armani brand. This product focuses on the more mature consumer who is not looking for ‘hip’ clothes but prefers classy ones. The line is sold in various high profile department stores like David Jones and Harvey Nichols. Emporio Armani: this clothing line focuses on younger consumers. It offers a variety of trendy wear like jeans and t-shirts. It is an intermediate line that is not too expensive or too available either. It is found in boutiques and departmental stores. Armani Exchange: this line also focuses on young customers. It is the least expensive line in the Armani brand. It includes jeans, t-shirts, sports coats and polos. Armani jeans: this line is sold in stores rather than boutiques. These designs are known for their colour and diversity. They also have very large logos of the Armani brand. It also targets young consumers. Armani Prive: this is a very costly line because it is tailor made for every individual. It is mainly for celebrities and extremely elegant clients. Consumers only see the designs during fashion shows and request for them personally. Armani Junior: this line is designed for children Giorgio Armani: this is the most expensive clothing line in the Armani brand. It is only available in Armani boutiques. Targeting and positioning issue Armani has found its niche in the highly competitive fashion industry because it has three main qualities to keep it ahead of the competition: image of luxury, relevant trends and superior designs. Designs for the brand have been associated with various high profile personalities especially in Hollywood during the annual awards. The designs have a strong personality behind them thus enabling consumers to identify certain designs to a certain individual; which is a very important selling point for the company. Armani has also expanded it markets into China which is a country undergoing a fashion revolution. The company has targeted this fresh market. (UDEL, 2007) Social influences on consumer behaviour There are a number of social factors that affect buyer behaviour. The first issue is social class. Social class is influenced by a consumer’s income and sometimes their lifestyles. This is a very crucial aspect for the clothing brand because the company can know who to target when marketing. Another factor is the ‘reference groups’ issues. Here, individuals’ choices in the commodity are influenced by peer groups, family members or other social groups who they perceive as opinion makers. This factor is important for the company because it should focus on getting these opinion makers to endorse their product thus coarsing other consumers into believing the product is worth buying. Lastly, needs also affect consumer behaviour. Low income earners have their own categories of items that can fit their pocket. This is the reason why there are a number of lines to fit the various financial abilities in the market. Psychological factors affecting consumer behaviours The first psychological factor is perception-how does a consumer see themselves. Marketers should use the aspect of who they want to be to sell their wares; this is called the ‘snob approach’. Attitudes is another factor, it is influenced by people, so Armani should get the right people to associate with its products. Lastly, knowledge affects how consumers buy. Implies that the more knowledge Armani avails to its consumers the more convinced they will become. (UDEL, 2007) Conclusion Consumer behaviour is essential in marketing. Before companies grew into multinational corporations, there was direct contact between buyers and sellers thus allowing sellers to study their consumers. But in this day and age there is increased distance between consumers and companies. It is therefore necessary to do an analysis of consumer behaviour and determine the underlying factors affecting their decisions. This type of research is called consumer research and helps organisations to determine how to (UDEL, 2007) improve their marketing skills and strategies. Armani being a clothing brand should maximize its potential in the marketing by using all the social and psychological factors affecting consumer behaviour to its advantage. Reference: UDEL (2007): Understanding consumer behaviour; Retrieved from http://www.udel.edu/alex/chapt6.html accessed on 7th December 2007 Read More