The Reasons of Failure and Now-Discontinued Ralph Lauren Rugby - Essay Example

Ralph Lauren Rugby Introduction Ralph Lauren Corporation was established in 1967. The company deals with marketing and designing subsidiary clothes for women, men, and children. In addition to this, the company also deals with fragrances and furnishings to customers all over the world. The company use Polo Ralph Lauren as its flagship brand that represents all its products all over the world. The company’s headquarters are located in New York City. Ralph Lauren Corporation borrows its name from its founder who began opened the business from a humble beginning with a $ 50,000 loan to sell men’s ties. The founder further expanded the business by engaging in sales of women and men’s suits. The Polo emblem was acquired as the company’s trademark and has since made success in the world’s clothing industry. The company also embraces the Polo sport line which was embraced in 1993 and in 1997 the company was listed in the New York Stock Exchange. Past Failure Despite enjoying enormous success in the clothing industry in the world the company faced major challenges. The company’s faced huge losses in 2005 in its fourth quarter despite having higher revenues. The company’s failure is attributed to many reason like brand failure, high prices for their products, and the target market not being stable. Competition from other brands which targeted the same market also contributed to the company’s failure. Low economy was also a challenge to the company’s failure. The competitor’s like Jones New York, PVH, Perry Ellis and Liz Claireborne also contributed to the past failure of this company. Moreover, when Hilfiger was acquired by Philips Van Heusen to form PVH the competition increased and this also meant that Ralph Lauren Polo had to come up with new ideas and technologies in order to compete effectively into the market. Moreover, Rugby Ralph Lauren also faced direct competitions from Jones New York Company something that added failures to the already suffering Ralph Lauren Polo company. This is also the reason the brand Rugby was closed only 8 weeks after its introduction into the market even though the market target was the youth. The marketing environment is constantly changing hence introduction of new product models is fundamental for maintenance of competitive advantage of the business (Ailawadi, 2008). To achieve this, Rugby has to introduce consumer hit constantly and one hit after the other. While marketing, it is important to consider levels of employment and income generations in the country’s economy and how these conditions can be able to sustain your business in the market. There will be need to consider whether household owners have an average high payment and alternative sources of income enough to sustain livelihoods and purchase products while marketing. In addition to this, Rugby must consider the number of low-income families relative to their small contribution hence providing a large market base for goods and services provided. Finally, Rugby must consider the number of individuals working part time in comparison to individuals working on full time basis (Shaffer, 2005). Considering this will allow the company to know how their different working conditions can influence the market conditions about your products and services (Rhodes, 2012). Rugby’s Strategy Product policy-Rugby focuses on development of high-tech products in particular. It is expected that more research and development will be conducted in this area to ensure that the product policy ensures fair competition and that the distribution channels are effective. This is aimed at ensuring that the products reach the consumer at the desired time and at the right quantity to satisfy the customer’s needs. Price policy. Since Rugby is not a new high-tech product in the lightening market, it targets at the premium market with somewhat high price. Its price is about 20% lower than the its direct competitors as a way of ensuring that the consumers are attracted back to their brand. It was noted that price was one of the factors that led to the failure of this brand 8 years only after it was introduced into the market (Larson, 2004). Place policy. Rugby products are sold through the delivery network of the Ralph Lauren Polo policy which distributes its products all over the world in its branches. The marketing department will also directly contact the potential customers. In addition, the company introduces the new product on its official website and allows the potential customers to book for the product (Esper, 2007). Promotion policy- In the first 6 months after re-launch of Rugby, the customers can get preferential prices. The new product will be sold at the same price of the traditional products so that the customers can be encouraged to adopt the new product. Promotion can also be done through advertisements in the internet and also through the social sites. Other advertisement forms like the media magazines and newspapers can also be adopted as a way of ensuring that stiff competition is avoided (Mentzer, 2008). People- Rugby was meant for the youth and that still remain one of the key objectives of Rugby. However, for Rugby to succeed there will be need to ensure that the products are delivered to the youths directly in order to meet their demands. It will also be necessary to ensure that new designs are made available to the youths before the competitors. Through research and development it will be necessary that the designers are not easily imitated to avoid competition. Position-Rugby has a good strategic plan in terms of place, customer loyalty and brand. However, it will be necessary that the Company ensures that a good market position is established. This can be done through marketing and rebranding of Rugby products. Moreover, Rugby is already enjoying the support of pioneer brands from its Parent company. Such advantages place the company in good position to re-launch its product and succeed without intensive competition (Storey, 2006). Physical Environment-Physical environment is one important factor when it comes to the clothing industry. It is important that Rugby ensures that they have all weather clothing’s in stock. This is to ensure that the consumers are able to come across any cloth at any time to avoid inconveniences. In addition to this, it is also important that the company also launches their new brands and products depending on the physical environment. For example, in countries like in China where the company has branches it will only be viable to sell light clothes which corresponds to the warm weather conditions in such areas (Willersdorf, 2007). Conclusion Rugby has the opportunity of reclaiming its glory into the market. This is through proper advertisement skills and through the company’s objectives and policies. Moreover, the company enjoys a good customer loyalty something that is of great importance for the company’s re-launch. Through the Asnof’s Matrix and the 7P’s strategy the company has outlined a clear policy that will help in making the company successful. Bibliography Ailawadi, K. L. (2008). The Effect of Promotion on Consumption. Journal of Marketing Research, vol 35 390-398. Ahmad, R., & Buttle, F. (2001). Customer Retention:a Potential Potent marketing Strategy. Journal of Strategic Management , 29-46. Appelbaum, Michael (2005-03-14). "Tennis Apparel, Anyone?". Brandweek. p. 40. Bell, D. R. (1998). 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