Marketing: Analysis of Dolce & Gabbana Marketing - Essay Example

Marketing: Analysis of Dolce & Gabbana Marketing Luxury Brand The luxury brand selected is Dolce and Gabbana that is an Italian luxury fashion brand. Two fashion enthusiasts, Stefano Gabbana and Domenico Dolce established the firm in 1985. The two founders have a background in design (Grail Research 2). They have created a trademark from their name, which has gained global reputation. The most important component of their success is their fusion of their unique and sensual styles and Italian character. The global market for Dolce & Gabbana products and products from other luxury brands has experienced a significant growth over the last 15 years. Most of these luxury brands record double digit sales and annual sales (Jones Lang Lasalle 2). These have favorably reflected on their stock prices. Dolce and Gabbana has a network of stores, which have played a significant role in the success of the firm. Currently, the firm is in the process of acquiring a market share in the growing Asia market for luxury goods and brands. Analysis of Dolce & Gabbana Two design specialists who were based in Italy founded Dolce & Gabbana. Dolce was a fashion design student who dropped out of school after realizing he had the knowledge and skills to start his line of fashion products. Dolce and Gabbana met during a night out where they discussed their fashion and design talents and passions. The first collection of fashion items by the two designers was showcased in 1985 during the Milan Fashion Week (Grail Research 1). This collection was labeled the Real Women collection. Sales from this collection could not cater for the production activities of the two designers. As a result, they were forced to cancel their fabric order. Fortunes for the firm turned around in 2000 when the designers agreed to work with popular artist Madonna (Sozzani 37). In addition, they secured a contract for the design of costumes for Mary J. Blige, Missy Elliot and Beyonce for their international tours. In 2005, the firm managed a turnover of 597 million Euros (Sozzani 73). Dolce & Gabbana had two lines of business, Dolce&Gabbana and D&G. In 2012, the firm merged the two lines to form the label Dolce and Gabbana. Dolce &Gabbana specializes in the design and production of luxurious items. Designers mainly influence these products, and they have a timeless and formal appeal. The firm seeks to respond to the long-term needs and trends of customers by focusing on seasonal changes. The firm is also involved in the design and production of corrective eyewear, watches and purses. In 2009, Dolce &Gabbana announced the launch of the make-up range of products. In 2010, the firm announced that popular singer Madonna will be involved in the design of a collection of sunglasses (Jones Lang Lasalle 3). Dolce&Gabbana has women and men fragrances. The other business line of Dolce & Gabbana is the D&G line. This is a flamboyant diffusion line of Dolce & Gabbana. Binda Group and Naloni manufactured the clothes and watches that were sold by D & G (Jones Lang Lasalle 5). This was not the case with the products sold by Dolce&Gabbana, which manufactured its own products. In 2011, Dolce & Gabbana abolished the D &G line in order to concentrate and focus its energy and strengths into their other collections. Dolce & Gabbana has a market strategy, which determines its activities and levels of production. The target group of the firm is the rich and elite people who have an interest in classy, trendy and elegant fashion products. The firm uses its target market for its positioning. Dolce & Gabbana has positioned itself as a modern, elegant, innovative and unique luxury brand that is focused on offering products of high quality. The firm’s target market includes people who are within the 15 and 25 age (Grail Research 3). According to a statement from Dolce & Gabbana’s marketing department, the firm also targets innovative people, trendsetters and people who enjoy irony and freedom in fashion. 65 percent of the firm’s customers are women and 35 percent are men (Sozzani 121). This shows that most of the customers are women. A SWOT analysis of Dolce & Gabbana shows that the firm has a number of strengths. It also shows that the firm uses its strengths and opportunities to deal with its threats and weaknesses. The main strength of Dolce & Gabbana is its strong brand image and loyal customer base. In addition, it has a unique and innovative product base, which targets people’s taste for quality and change. The other strength is the fact that the firm has a large brand portfolio. The main weakness of the firm is that it targets the rich and elite customers. This means that most of its products are exclusively available to rich customers. As a result, the products are highly priced to limit the customer base to the rich and elite. Dolce & Gabbana is affected by economic fluctuations and trends. For instance, during the economic crisis of 2007, the firm experienced low sales volumes (Claudia and Ilaria 2). There is also emerging competition from other luxury fashion brands such as Prada, Louis Vuitton, Gucci, Hermes and Chanel. Dolce & Gabbana has a number of opportunities. There is a growing luxury market, particularly in the mass markets of Asia. Growing economies in Asia such as China and India provide opportunities for the firm to increase its sales volume, diversity, customer and product base. In addition, there is a global service and product expansion. Dolce & Gabbana also has an opportunity to increase its innovativeness in products. Currently, fashion consumers are embracing liberal trends. Threats to the operations and sustainability of the firm include increased and strong competition. Competitors are competing in terms of style, elegance and innovation. Additionally, the firm faces difficulties in breaking customer loyalty towards other brands. In order to break customer loyalty towards competitor’s brands, Dolce & Gabbana is forced to engage in massive marketing campaigns. The firm faces a threat from the need to investment in the promotion of its brand. This means that the firm may shift its focus from innovativeness and design to marketing. Current Portfolio Dolce & Gabbana’s portfolio is based on its two lines of production, Dolce &Gabbana and D&G. The firm specializes in the production of luxury items. These products respond to customer’s needs and market trends. Dolce & Gabbana sells corrective eyewear, sunglasses, watches and purses. In addition, the firm has a range of make-up products and fragrances for women and men. From 1992 to 1998, Dolce & Gabbana had a bridal collection. It also had a home collection that was discontinued in 1999. In 1989, the firm created its foremost beachwear collection for women, which was followed by the men’s beachwear collection. In 2000, Dolce & Gabbana launched its underwear collection for men and women (Claudia and Ilaria 2). This collection was different from its lingerie collection. The junior line collection for children was started in 2001. Dolce & Gabbana also has a line of color cosmetics launched in 2009. Its line of fine jeweler was launched in 2011 with a line that included products such as charm bracelets, bejeweled rosaries and necklaces (Grail Research 4). Dolce & Gabbana’s DG logo is a recognizable fashion symbol. Some of Dolce & Gabbana’s portfolio is under partnerships with other companies. For instance, in sportswear, the firm has a partnership with AC Milan for the design of on-field attire for players and coaching staff. In addition, AC Milan players dress in Dolce & Gabbana attire when handling official activities off the field. Dolce and Gabbana equally provide off field attire of the Italian National Football Team. Dolce and Gabbana signed a deal with Chelsea Football Club in 2010 for the design of the club’s off field and on-field attire and uniform. In 2006, Dolce & Gabbana entered into a partnership with Motorola for the production of the Motorola V3i Dolce & Gabbana mobile phone. The firm also collaborated with Sony Ericsson for the production of the Jalou cellular phone, which has a 24-karat gold detail. Citroen and Dolce & Gabbana partnered in the design of the C3 Pluriel vehicle (Mower 47). Since the launch of Dolce & Gabbana’s fashion items, the firm has cultivated and maintained a singular brand identity, which is characterized by the combination of contrasting designs, naturally matched pieces and meticulous tailoring. The brand is synonymous with flattering cuts, and confident and athletic sartorial classicism (Claudia and Ilaria 8). Dolce & Gabbana have an atelier that was opened in 1995. The atelier is a seven floor combined corporate and boutique space that has a showroom. In 2006, the firm opened its show floor, which was a 5,000 square foot. In addition, the firm bought the Metropol theatre that is located in Milan. Dolce & Gabbana renovated the theatre and reopened it in 2005 (Mower 61). The IL Gold was opened in 2006 as an establishment that has a bar, café, bistro and restaurant area. The establishment was opened after the firm entered into a co-sponsored drinking agreement for the establishment. The firm has also opened a Martini Bar in Milan and Shanghai. Currently, Dolce & Gabbana has 11 factory outlets and 93 boutiques. The firm has approximately 251 mono-brand stores in 80 countries (Jones Lang Lasalle 9). In the U.S, Dolce & Gabbana has standalone boutiques in locations such as Chicago, Beverly Hills, Bal Harbor, New York and Las Vegas. Dolce & Gabbana uses its space to promote runway shows, advertising campaigns and host arts and photography exhibitions. The space is also used for functions and activities such as book launches and exhibition of its clothing lines. In 2011, Dolce & Gabbana launched a book known as David Gandy in their Milan boutique (Jones Lang Lasalle 9). Proposed Brand Planning The proposed brand planning for Dolce & Gabbana will focus on brand positioning, brand value chain and brand resonance. The process of creating a brand plan for Dolce & Gabbana will rely on imaginative and thoughtful planning (Hoffmann and Ivan 58). The establishment and management of a brand require the careful development and implementation of creative brand strategies. The brand positioning model will be used to establish competitive advantages. Brand resonance models will be used to create intense and loyal relationships between Dolce & Gabbana and its customers (Hoffmann and Ivan 58). Brand value chain models will be used to establish the value creation process to comprehend the financial impact of investments and marketing expenditures. The three models will collectively help in the creation of a branding strategy that will maximize profits and ensure long-term brand equity, in addition to tracking progress. Dolce & Gabbana should use the brand positioning approach as the initial step in brand planning. The approach targets the creation of an understanding of the firm’s image and product offering among the target market. The main component of brand positioning is the creation of a competitive frame of references, which will outline the nature of competition and target market. The second component is the establishment of a point-of-difference, which will create a unique brand association. The third component is the point-of-parity, which targets brand association and points of difference of competitors. The fourth component is the brand mantra, which summarizes the essence of Dolce & Gabbana and crucial points of difference with competitors (Hoffmann and Ivan 68). Activities in brand resonance are concerned with the creation of a strong brand. These activities will help in the establishment of a brand identity, brand meaning, brand responses and brand relationships. These attributes create a brand building block that incorporates the contributions of customers. The brand resonance model provides a road map that provides guidance during the brand building process. Brands can use the model to assess their progress and guide their marketing research activities and initiatives. It is vital to note that brands should have duality (Hoffmann and Ivan 77). The brand resonance model emphasizes on the need of brands to have a strong duality. Strong brands appeal to customers because they blend product imagery and performance. Customers are able to create a varied and rich set of consumer responses to the Dolce & Gabbana brand. The brand value chain is the last step in the brand planning process. The step is a structured process or approach that seeks to assess the source and outcome of brand equity. It also seeks to assess the strategies used by marketing activities to create brand value. It is vital to note that the chain has a number of basic premises. The first premise is that the chain assumes that the brand value resides with customers. The model also assumes that the creation of brand value begins with investments that focus on marketing activities and programs, which target potential and actual customers. Marketing activities that are associated with the investments affect the mindsets of customers concerning the brand (Hoffmann and Ivan 82). The mindsets of customers lead to certain outcomes in terms of brand performance in the marketplace. The brand value chain model assumes that linking factors intervene during the stages of brand development and brand planning. These factors determine the successes of the brand in the marketplace. Recommended Marketing Plan A marketing plan is a vital component of a business plan. This is a recommended marketing plan for Dolce & Gabbana, which will help the firm keep its business and processes in line with its mission and vision. The marketing plan focuses the activities of a business to its service and product line, financial situation, markets, and sales and marketing tactics. Dolce & Gabbana needs to have knowledge of its weaknesses and strengths. This is possible through an external and internal analysis of its processes and market opportunities (Soscia 29). Additionally, Dolce & Gabbana must analyze its services and products based on the viewpoint of its customers. Most importantly, Dolce & Gabbana must analyze its target market and trends in its traditional markets. The first step in the establishment of a marketing plan is the identification of the firm’s mission statement. All the activities and processes of Dolce & Gabbana should be guided by the content of the mission statement. Additionally, the mission statement of the marketing plan should guide them. After the identification of the mission statement, Dolce & Gabbana should diagnose its processes. This requires the firm to determine its current state based on objective and accurate approaches. This means that Dolce & Gabbana should identify its services and products according to their color, name, trademark, shape and characteristic, including labeling and packaging. The diagnosis of the firm should also incorporate the analysis of the firm’s competitive advantages (Grail Research 3). This means an analysis of how the services and products of Dolce & Gabbana differ from competitors. In the case of market, Dolce & Gabbana should identify its customers by analyzing their lifestyle and demographic. Thereafter, the firm should develop the strategies it will use in meeting the needs of its customers. These strategies should be based on the real and perceived needs of the customers (Grail Research 3). Additionally, the firm should list all the factors that influence purchasing. In the case of Dolce & Gabbana, some of the factors may be seasonal changes, price, tax considerations, convenience, availability, emotional considerations, gift and services offered. The unique selling points for Dolce & Gabbana are its brightly colored items and the use of bold prints, which are inspired by the traditions of the designers. Additionally, the lace and leopard print items, which are iconic to the brand, can be viewed as unique selling points for Dolce & Gabbana. Based on these unique selling points, Dolce & Gabbana should use the marketing mix strategy in its marketing plan. In the case of products, Dolce & Gabbana offers a number of products that target children, men and women. These products include menswear, women’s wear, children’s wear, jewelry, beauty products and accessories. The product range of Dolce & Gabbana is unique and high end. These products should use high-end materials to create a luxurious feel. In the case of place, Dolce & Gabbana products are currently available in 80 countries. The firm has 251 mono stores and a number of luxurious boutiques (Soscia 89). Dolce & Gabbana should shift its place strategy in order to expand its operations into other countries. The firm should open stores in developing countries such as China, India and Brazil. Additionally, the firm should consider increasing its branches to cities such as Los Angeles, Paris, London and Beijing. In the case of price, Dolce & Gabbana should vary its prices based on the product and material used to make the product. The price range for women’s wear should range from $250 to $110,000 and the price for menswear should range from $90 to $3,500 (Soscia 153). This pricing consideration is based on the production costs, logistics and market trends. In promotion, Dolce & Gabbana should use extensive promotional strategies. These strategies will help in the acquisition of customers from competitors. The firm should focus on new promotional mediums such as social media and the internet. Works Cited Claudia, Manomi and Ilaria, Sidari. Luxury Brands: Dolce & Gabbana. TESINA. 2013. Print Grail Research. The Global Fashion Industry-Growth in Emerging Markets September 2009. Grail Research. 2012. Web. 9th July 2014 Hoffmann, Jonas, and Ivan Coste-Manière. Global Luxury Trends: Innovative Strategies for Emerging Markets. 2013. Web. 9th July 2014 Jones Lang Lasalle. Glitter and Glamour Shinning Brightly. Advance. Luxury Shopping Streets Europe. 2011. Web. 9th July 2014 Mower, Sarah. 20 Years Dolce & Gabbana. Milan: 5 Continents, 2005. Web. 9th July 2014 Sozzani, Franca. Dolce & Gabbana. Paris: Editions Assouline, 2005. Web. 9th July 2014 Soscia, Isabella. Emotions and Consumption Behavior. Cheltenham: Edward Elgar, 2013. Print. Read More