An Individual Audit and Analysis of a Fashion Brand and its Communication Strategy - Report Example

Introduction This report provides a comprehensive brand audit and brand analysis of Armani. This involves the examination of the marketing and communication objectives and targets of Armani and how they work to attain that end. The brand audit would involve a critical assessment of Armanis brand communication and how it builds clients interest. The paper would also examine the brand personality, brand portfolio and brand architecture. As well as how Armani works to attain brand equity. The report would assess the marketing communication and target customers. The report would review the technological and innovation systems used by Armani. The paper also views the brand value creation and communication used by the company in question. Brand Portfolio Giorgio Armani is a global brand that uses the principles of brand architecture to segment its services. The brand is centred around the Armani Prive which is the Haute-Couture brand of the company. This is the framework for the development of six other brands which allows the company to sell their products. This is critiqued below Segment Giorgio Armani focuses on haute-couture, ready-to-wear and leather products as well as jewellery and cosmetics for high-end clients (Potvin, 2013: 255). The average Haute Couture prices for a dress or piece of garment ranges from £30,000 to £75,000 (Kadres. 2009: 49). The Haute Couture wing of Armani has its headquarters in Paris. Giorgio Armani has several specialized sub-labels which enables it to work in several areas and aspects of the fashion industry. It owns several assets that allows Armani to design, manufacture, distribute and retail its Haute Couture, Ready-to-Wear leather goods, shoes, jewellery, accessories, eyewears, cosmetics and home interior products. Armani specializes in the top-end high class luxury products. These products include items of the highest quality. Aside that, the broadbase of Giorgio Armani allows it to manufacture and sell mass production items that are sold under £100 per product. This enables the brand to grow and enable Giorgio Armani meet his original vision of making men and women feel comfortable in the clothes they wear (Kadres, 2009: 49). Products According to Okonkwo (2007), Armani has six different and distinct brand units that defines the Armani collection. This include: 1. Armani Prive: Haute Couture which costs several thousands of pounds per item. 2. Armani Collezioni: Less expensive than the Prive and targets executives. Mainly garments and a range of products that is designed for top executives. 3. Armani Exchange: Lower quality version of Collezioni. Targets younger executives. 4. Emporio Armani: A full range of products that is more casual than the Collezioni. Targets American customers. 5. Armani Jeans: Casual and sporty version of Armani products. 6. Armani Junior: For children. Basically, these six brands define the products and the range under which Armani produces for consumers around the world. Clothing Armani Collezioni is a diffusion of sub-brands of the Armani collection which includes fine tailored clothing, sportswear and male and female clothing accessories. Armani Jeans include denim sub-brands which are mainly jeans in nature. Armani Junior include childrens products and sub-brands for younger people. Okonwko goes further to examine that the touch and style and signature of Armani remains in the centre of Armanis clothing brands. The underlying clothing identity is that it involves luxury products and outlooks. The unifying factor is that all the clothes are made of high skill precision, top craftsmanship and high quality material (2007: p283). The clothes of Armani are usually marketed and promoted through a fashion dynasty system which dates back to the 1980s (Manlow, 2011: p158). This involves staging various fashion shows and modelling sessions in Milan, Paris, London, New York, and other parts of the world. The trademark of Armani clothing is crisp dress, cold and conservative themes (Manlow, 2011: p158). Accessory The Armani Collezioni is made up of various products like Underwears, Swimwear and other products that add up to fashion accessories of consumers (Steele, 2010). In the 1980s, Armani signed an agreement with LOreal to create perfumes. This expanded Armanis accessory base. In the 1990s, sportswear was added to the various accessories of Armani. By 2005, Armani added the Emporio Accessories which also gave room for assorted accessories to be added to the product line of the company (Garzone and Ilie, 2010). Armani produced these different accessories which included bags, shoes, purses and other leather products with the Armani logo. However, they were either under the Emporio or the Collezioni brand. Home Accessories are also a major part of Armanis collection. The Armani Casa includes interior decoration items which are good for the decoration of homes and other places of dwelling. Cosmetics, makeup and perfumes Armani perfumes are available in different outlets around the world. Armani perfumes are important because they provide an easy and convenient way of spreading Armanis brand amongst a wide group of people in the fashion world. Armani cosmetics were added to the range in the 1990s (Steele, 2010). Armani cosmetics are sold under the Armani Exchange AIX logo. This is a luxury division of LOreal (Milan, 2007). The Armani Exchange (AIX) is sold through long-term partnerships with retailers in malls around the world. This include 82 AIX stores around the world (Milan, 2007). Jewellery and watches Armani jewellery and watches are sold throughout the world. They are developed in partnership with various manufacturers, particularly Swiss manufacturers under the Armani logo and are marketed in different shops and retail outlets around the world (Thomassen et al, 2011). Quality Armani is known for segmenting its products to various levels. The premium and top class segment includes high-quality and luxury products that are available to high end consumers. This sets the tone for what Cambridge scholar Sztompka (2011) describes as the “Armani Effect”. These products get high press exposure and leads to sensitivity amongst consumers. The standard products produced through mass production channels are of standards that are similar to the top-level premium versions. They are of the high standard and remain amongst the top and the best brands around the globe. Design The designs of Armani include the ready-to-wear products and designs that reflect the various changes in the fashion terrain (Steel, 2010: p25). Armani is designed in a tradition that reflects the ideologies of the founder, Giorgio Armani. Due to that, there are various designs that are varied over and over to reflect the changes in trends and patterns in the world of fashion. The brand is still amongst the best and it seeks to imitation and reproduce classic and high standard designs. BRAND IDENTITY This section of the report would focus on the Armani brands and how they work together to promote the Armani products to customers. Figure 1: Giorgio Armani Logo Figure 2: Emporio Armani Logo: Example of a Sub-brand. BRAND IDENTITY Brand Identity Model by Kapferer Armani Capabilities: Stylish, Luxury and Affordable Luxury. Armani Personality: Giorgio Armani, Rossanna Armani, Angelina Jolie Armanis Internal Culture: Catwalk, Red Carpet Armanis Shared Values: Top-notch traditional European culture blended with modern American trends. Armanis Noble Purpose: Achievement & Pacesetters Armanis Aspirational Self-Image: Luxury and Class. Armani is a highly segmented and global brand that provides a niche for different classes of people. However, in each category, Armani shows to be a pacesetter and an achiever in providing top class luxury fashion for the various customers. Giorgio Armanis brand identity for the high end stylish products like the couture products are generalized and the trends are reflected in all the classes of the Armani products. Packaging is done in such a way that all the different needs and aspirations of the classes are covered by the top notch materials and quality standards that are observed throughout the different brands. Brand Personality “Brand personality is the constant characteristics or inner traits of a brand and it represents the singularity and predictability of behaviour of a brand” (Franzen and Moriarty, 2011 p231). Brand personality is the constant of a brands identifying character (Aaker and Biel, 2009 p4). According to Okonkwo (2007: p281), The Giorgio Armani brand is an extension of the personality of the owner and founder, Giorgio Armani. Giorgio Armani is a businessman and a designer of class. He belongs to the top notch of his career and he personify the kind of leader who has the best of everything in intelligence and achievement. The Giorgio Armani brand is therefore a personification of luxury fashion. Fashion that meets the world-class standard and expectations of people who associate with it. Armanis business potential spreads to other brands and other products in the range and this is done through the packaging and brand name which runs through. Further descriptions are given by virtue of the examination of the brand architecture. Brand Architecture Brand architecture is steeped in two main things, what to call new products and the brand levels to adopt (Kapferer, 2008: p347). Brand architecture is seen by Schmitt and Rogers (2008) as the marketing and investment relationship meant to boost constant customer loyalty. Armani maintains one corporate brand. And the name “Armani” runs through all the six fashion brand: Armani Prive, Armani Collezioni, Armani Emprio, Armani Exchange, Armani Jeans and Armani Junior. These are discussed further in the next section. The brand name of Armani has attained a very high standard for the company and it is therefore an important element and component. The brand architecture also ensures that the different price ranges of the product are re-labelled with some kind of Armani and prices are flexed to reflect the social and economic elements of the company in order to retain the various levels of customer interests based on their expectations and their positions. The brand architecture of Armani is arranged in such a way that it responds to the market conditions. This is because it is not everyone who can afford or might be interested in the Couture elements that Armani Prive offers. Thus, there is the Armani Jeans and Armani Junior which is much cheaper and affordable. In-between, there are numerous options that provides consumers with different options and opportunities that can help them to remain loyal to the company. The brand identity is examined and evaluated further below: Products and Services Armani products and services are classified on a continuum that spans between Couture which represents the highest quality products and accessories to Sporty which is a description for the more casual and less expensive products. In-between, there are several products and services that are on offer and this include other casual brands, fashionable brands and casual brands. The various brand groupings are demonstrated in the Product and Service Graph in Figure 3 below. Figure 3: Giorgio Armani Product & Services Graph From the diagram, it is clear that the Giorgio Armani brand ranges from sporty through to casual to fashionable, classic and couture. These products perceived quality and value changes as one moves from one end of the scale to the other. Armani Jeans and Armai Exchange (AX) are somewhat casual and less fashionable. However, Armani Prive which is the Couture branch of the company has a totally distinct outlook and it belongs to the class of luxury products. Okonkwo defines luxury in fashion to mean exclusivity, craftsmanship, uniqueness and ostentation (2007: 11). This means that the Style brands of Armani come with these four core features and hence, they are a little more expensive than normal. Windows & Visual Merchandising & Retail/Online Environment Merchandising Outlet Location Layout Armani Prive Specialized Armani boutiques in selected cities This is located in top notch avenues with world-class shoppers like Madison Avenue. Where perennial travelers with high earning abilities come over to visit. The shops are custom designed by Italian experts to give the shopper a view of the most modern brands and products on offer. Highest security available (See Figure 4 and 5 below). They have airconditions and fitting rooms specially designed for the wealthiest shoppers. Armani Collezioni High-end department stores eg. Holt Renfrew, and Harrods. Often located in suburban areas where the super-rich live and thrive. The retailers have strong social media presence. The display is available and conspicuous to the external shoppers. Armani section shows Armani brand clearly. They all have upmarket dressing rooms and shopping factors. Armani Emporio Specialized Emporio-Armani shops in selected cities These are located in commercial centres of cities around cities around the world. Specially designated Armani segments in shops. Armani signage clear. These have fitting rooms. Armani Exchange Online and exclusive Shops, mainly in the United States Mainly over the Internet. Also, sold in major cities around the United States. Armani brands are clearly shown on packages. They may not have so many and so large fitting rooms. Armani Jeans Department stores and 15 freestanding Armani Jeans shops These departmental stores target middle ranked persons and are located in inner-city points The Armani Jeans shops are specialized and they provide exclusive Armani products and services. Armani Junior 15 selected Armani Junior shops and high-end departmental stores. These are mainly in areas that baby products are sold Armani Junior comes with good exposure to consumers. Figure 4: Armanis 5th Avenue Shop, New York Figure 5: Layout of Armani 5th Street, New York Tactility Brand Pricing Packaging Armani Prive Top-notch, typically over £15,000 per item Selective, creative and custom packaging. Armani Collezioni 20% less than Armani Prive Giorgio Armani brand not very conspicuous. Class similar to the Prive materials Armani Emporio 30% - 50% less than Collezioni Standard Emporio packaging with conspicuous Armani Emporio logo. Armani Exchange Casual. Average prices like common products. Usually 50% less than Emporio brands Armani Exchange, AX is conspicuous in the packages and it is standardized: Appendix 2 Armani Jeans Similar to mass produced sportswear Armani Jeans packages are standardized. They are AJ or Armani Jeans is placed on a small leather strap at the back of the jeans Armani Junior Slightly more expensive than other childrens product but usually 30% to 50% of Armani exchange prices Armani Junior is conspicuous in the external packaging. Consistency Brand Summary Brand Target Consistent Identity Corporate Armani Brand Company Brand Generally, customers between 30 and 50 years. Matured and upmarket customers. Brand architecture allows segmentation and targeting other classes of customers Corporate Brand, Umbrella Brand: Provides a core identity for all Armani brands. The brands below are target brands that form part of the multilithic brand system of Armani Armani Prive Couture Provides top-notch products for achievers usually the super-rich above age 45. This is an endorsed brand that targets high end customers and allows other customers to associate Armani with the top class in society Armani Collezioni Classic Prices 20% lower than Armani Prive. Target clients above age 45 but amongst executives. This provides a downgrade of the couture brand and allows the upper-middle class members of society to acquire Armani brands for themselves Armani Emporio Young Professionals Professionals between ages 25 and 35 Prepares the next generation of Armani customers by giving them an upmarket fashion at an affordable price to fit their earning capabilities. Armani Exchange Casual Available to people less particular in their tastes for fashion. Available in external shops and allows affordable fashion to more ordinary people. The Armani Exchange is a move towards a mass production brand for more people in the society to acquire them and build more brand equity. Armani Jeans Sporty Targets young adults between 18 and 30. Allows trendy and fashionable luxury apparels. Armani sporty is an epitome for mass production versions of Armani. This makes Armani available to more people. Armani Junior Children For persons under 12 years old Armani junior allows children to get access to the Armani brand and its related products Brand Equity Brand equity refers to the impact of the brand on consumers; mental associations (Kapferer, 2008). Brand equity is a set of associations and behaviour or the part of a brand, channel or parent corporation that permits the brand to earn greater volumes or greater margins than it could without brand name (Kapferer, 2008 p14). The Armani brand is therefore to be evaluated by the ability of the brand to promote and support loyalty and value for the Giorgio Armani company. Interbrand.com places Armani as the fourth most valuable Italian brand after Gucci, Prada and Ferri (Interbrand, 2013). Mill, Ward and Brown ranked the various brands around the world in 2012. They put Armani in the top ten class of luxury brands. Figure 6: Top Ten Luxury Brands This shows that in 2012, the Giorgio Armani brand is worth $4.1 billion. This shows how valuable the brand is on global levels. Growth-Share Matrix According to the Boston-Consulting Group growth-share matrix, market growth and market share are compared to provide a background of a given set of products that a company owns or runs. Market Share Low High Market Growth High Question Mark Armani-Collezioni: This remains a popular brand but there is still room for expansion of market share. There are competitors whose brands are more appealing [Figure 6 above. Star Armani Prive: Popular brand known all over the world. Brings in money and has a high market share. Low Dog Armani Junior: This is the lowest in market share and in growth. However, it remains because of the need to groom the next generation of Armani users. Cash Cow Armani Exchange is a major and popular range. However, the market share is not growing due to the presence of new competitors. Table 3: Armani BCG Matrix Loyalty Measures 1. Price premium: Many consumers are willing to pay more money for an Armani product than they would pay for a similar product that has no brand name or popularity. This is because Armanis brand is judged by the ability of the brand to connect to different classes of the brand. Someone buying the least expensive version of Armani [the sporty brands] might associate it with the most expensive Armani Couture. This makes the brand equity stronger and the name of the company comes with stronger connections to fashion and luxury. 2. Satisfaction: The recognition, and association that consumers gain by owning an Armani brand is in itself some kind of reward that helps the Armani brand equity. This is because Armani puts a wearer in a class of very high end users and richer people who can also afford the brand. Comfort has been the target of Armani and this is a major proponent of Armanis brand. Perceived Quality/Leadership Measures 3. Quality: Armani described by Okonwko to be a symbol of luxury and quality. This is because most mass production items are produced with the high quality standards that might not be normally attributed to other products and brands. 4. Leadership: Armani is a market leader and has existed for quite a long period of time. Armani is in the class of other high class fashion houses like Ralph Lauren, Calvin Klein, Gucci, Chanel and other products that are ahead. The pacesetting element of Armani makes it preferred and provides some kind of brand equity that is rare on the markets. Associations/ Differentiation Measures 5. Perceived value: Perceived value relates to the worth and durability that most people connect to Armani products and brands. This makes the user of Armani products to be viewed in a very different light and allows the perception of quality and superiority prevail when such a user is judged. 6. Brand Personality: The brand personality of Armani is such that the company is identified with luxury and top-notch quality. The user of an Armani product is commonly associated with Giorgio Armani and puts the user on the class and level of other business executives with world-class stature. 7. Organizational Associations: Armani has different connections with partners like LOreal and it is sold in external markets like high end malls and places. The user of an Armani product is linked to these top level companies and organisations. Awareness Measures 8. Brand awareness: Armani is known all over the world. It was one of the first brands to enter the Chinese markets and other markets around the world. Thus, Armani is known and a user gets that immediate recognition. Market Behavior Measures 9. Market Share: Armani is a market leader in the fashion market. It controls vast markets shares in almost every country they operate in. Some analysts place Armani in the top 20% of market shares in the primary markets (Kapferer, 2008). 10. Market Price and Distribution Coverage: Aradhya (2011) and other commentators identify that Armani is not only know in Europe and the United States. He states that Armani actively expands into other countries including the Asia-Pacific Region. China for instance has 13 million Armani users and this shows that Armani is a global market contenter and it flexes its prices to meet the local conditions and enter the local markets Branding and Targeting of Armani Brand Loyalty High Low Brand Personality Association Low Prospective Switchers Armani Collezioni Quitters Armani Exchange High Hardcore Armani Privee Hunters Armani Emporio Armani Jeans Armani Juniors Table 2: Brand Personality – Brand Loyalty Linkage & Targeting of Armani Armani Privee is the main essence of the whole brand. It sets the framework for the original French Haute-Couture which forms the foundation of and that is something for only the hardcore customers who have accepted the brand and are loyal to Armani and can associate with it. These customers link up strongly with Armani. The customers with lower brand personality association but high loyalty would normally want to link up through the acquisition of Armani Collezioni. Those who have low brand loyalty and lown brand association would go for Armani Exchange. This is quite a common brand that a person might want to acquire to light up his wardrobe. People who want to try out Armani could take up Armani Emporio and Armani Jean. Armani Juniors are children who want to are being groomed to build a high loyalty in the future. Conclusion on Brand Identity Armani is a global brand and it gains its identity from the ability to maintain a top-notch position with its Haute Couture. Armani has a strong connection to the personality of its founder and the French and Italian classical fashion industry. This marks the identity of the Armani brand and provides an external view of the company. However, for the purpose of promoting the brand around the globe and to different classes, Armani has segmented its products through brand architecture. The brand architecture includes 6 Armani fashion brands which allows different ranges of products and gives different classes of consumers the opportunity to purchase Armani products. Marketing and Communication Objectives Target Market The original target market of Giorgio Armani is the elite and high class amongst the society. This include the fashion literates and those who have an understanding of luxury fashion. SOSTAC plan is described in Appendix 3 below. However, through the process of brand architecture, Armani is able to reach less endowed members of the society with less expensive products. These products are made available to members of the society and in most cases, this include members of the public in developing countries around the world. The marketing and communication systems of Armani is bound to reflect its position as a top class luxury fashion manufacturer. As identified above, Armanis marketing philosophy is based on three things: 1. Unique and personality based branding. 2. Maintains the atmosphere of a real luxury brand. 3. Reflect the personality of Giorgio Armani. General Communication Strategy The communication strategy of Armani is to use various communication campaigns that would lead to the exposure of Armani models and pictures to various consumers and potential customers around the world. This include the use of locations, colour and merchandising. Corporate communication is controlled by Giorgio Armani himself. The corporate communication seeks to create a unique and distinct sign of corporate communication. This is done through the use of stars like Hollywood stars and football stars. Marketing Communication Tools of Armani This is meant to arouse attention, interest, desire and action from consumers. In the case of Giorgio Armani, the company uses: 1. Traditional Marketing 2. Promotions 3. Web/Social Media SOSTAC plan is described in Appendix 3 below. Traditional Media V New Media Armani has a strong blend of usage of traditional media and modern media. Armani Prive which includes the traditional Armani concepts is still strongly entrenched in the traditional media. However, it has been expanded into the modern and multimedia systems through the Net and also as a backing advertising component for new brands. Armani Collezioni, Armani Exchange and Emporio Armani as well as the less expensive brands are advertised more through the multimedia components. This is because competitors also advertise on these lines and this brings a higher value for money. Multimedia component Multimedia components refer to the use of the Internet and other modern technological tools for the promotion of the Armani brand. Armani uses its website to promote its components and this include the showcasing of models and popular parties through the Internet. Armani also has social media outlets that have the opportunity for ordinary members of the society to upload their pictures. This enables the promotion to get an impersonal outlook. Written Component Armanis writing component is done around a given theme each season. The most recent theme was “FALL in love with Armani. This provides a catchy phrase that allows the adverts and commercials to be built around a given concept. This is handled by Armanis efficient copywriters who do the labelling and write ups on the company and its products in a given season. Spoken Component The themes of the Armani season is often communicated through commercials or through the speeches of people in the advertising campaigns. These are done in sync with the seasonal philosophy and allows consumers to get interested in the products Exhibitions There are various exhibitions that Armani performs over different periods of times to showcase their brands. The latest exhibition was Eccentrico which traced Armanis various styles and influences over the past 20 years. Eccentrico began after the spring show and it traced Armanis variations in styles and the factors that influenced them. The exhibition took place at the headquarters of Armani in Milan. Archived clothes and other creations were shown in the exhibition to show the world about Armanis activities and achievements over the years. This included the parading of models including Lady Gaga and other international stars to attract attention and promote the Armani brand. Case Analysis: Armani Integrated Marketing Communication with Christiano Ronaldo Figure 8: Cristiano Ronaldo in Armani Jeans Armani has been known for using international stars to market and promote their products. The current campaign seeks to use the global football star to attract attention and interest in the company. The following details relate to the Integrated Marketing Communication System. IMC Objectives The objective is to attract attention with the popular and conspicuous Madrid Star, Cristiano Ronaldo. Ronaldos personality is to attract attention and develop interest in the Armani products that he wears. This would build desire and create action amongst consumers. Target Market The target market is a universal host of people who might want to dress casually and in a sporty fashion. However, younger people remain the primary target of this campaign. Communication Strategy The communication strategy refers to the ways and manner in which information about the campaign would be made available to people in the public. This include media outlets and other new systems like multimedia outlets. The pictures and other videos that would be captured are sent out through these outlets. This provides updates for customers and other consumers and builds interest in the Armani brand. Conclusion Armani is a global brand that uses the principles of brand architecture to ensure that the brand does not only produce extremely expensive Haute Couture. The use of brand architecture allows Aramani to produce for different segments and different sections of the market. Armani is involved in the use of brand architecture which leads to brand equity and promotes loyalty. Segmentation is at the heart of Armanis success. Communication varies and the variations are based on the different kinds of consumers that exist on the markets. The marketing communication system of Armani provides a framework for the attraction of consumers. This is done through a blend of traditional and more modern multimedia systems and outlets. The effect is that Armani remains more open to new possibilities and these prospects continue to increase. References Aaker, D. A. and Biel, A. L. (2009) Brand Equity and Advertising London: Routledge. Aradhya, J. (2011) Armani Marketing Strategy New Delhi: Tata McGraw-Hill. Franzen, G. and Moriarty, S. E. (2011) The Science and Art of Branding New York: ME Sharpe Garzone, G. and Illie, C. (2010) The Use of English in Institutional and Business Settings London: Peter Fang Publishers. Interbrand (2013) Interbrand Unveils Italys Most Valuable Global Brands [Online] Available at: http://interbrand.com/en/news-room/press-releases/2008-12-05.aspx Accessed: February 14, 2013. Kadres, F. (2009) Consumer Behaviour Mason, OH: Cengage Kapferer, J. N. (2008) The New Strategic Brand Management London: Kogan Page. Manlow, V. (2011) Designing Clothes: Culture and Organisational Factor of Industry New York: Transaction Books. Milan Reference (2007) Travel Milan New York: Mobile Reference Mill, Ward and Brown (2013) Top Ten Fashion Brands [Online] Available at: http://www.millwardbrown.com/Libraries/Optimor_BrandZ_Files/2007_BrandZ_Top100_Report.sflb.ashx Accessed: February 14, 2013. Okonkwo, U. (2007) Luxury Fashion Branding: Trends, Tactics and Technology London: Palgrave Macmillan. Potvin, J. (2013) The Places and Spaces in Fashion 1800 – 2007 London: Routledge Schmitt, B. and Rogers, D. L. (2008) Handbook of Brand and Experience Management Surrey: Edward Elgar Publishing. Steele, V. (2010) The Berg Companion to Fashion London: Berg Publishers. Sztompka, P. (2011) Trust: A Sociology Theory Cambridge: Cambridge University Press. Thomassen, L., Lincoln, K. and Aconis, A. (2011) Retailization: rand Survival in the Age of Retailer Power London: Kogan Page. Zou, S. and Fu. H. (2011) International Marketing London: Emerald Group Publishing Appendix 1: Brand Architecture Appendix 2: Armani Exchange Package Armani Packaging Sample Appendix 3: SOSTAC Analysis of Cristiano Ronaldo Armani Campaign Situation Analysis: Internal Audit: Giorgio Armani brand is marketed as a unified entity through the Armani brand and sub-culture. However, Armani has different channels through which it promotes its different sub-brand. The marketing of Armani is mainly done through sub-systems and the Armani website and social media outlets allow third parties to get a feel of the company and its activites. Audience are spread throughout all age categories and all geographical areas. The use of brand architecture allows Armani to be accessible to all classes of people. The Armani website reaches all nations around the world. Armani also makes over $1.6 billion in revenue each year. External factors include Globalization and economic trends which requires changes in tones and approach. Also, factors like economic activities and new policies of government plays a role in Armanis brands marketing. Restrictions by governments and taxation shapes the way marketing can be done. The main rivals include other luxury brands like Louis Vuitton and Ralph Lauren who offer similar services across different lines. Armanis traditional markets are in Europe and North America. New niches are opening up in Asia-Pacific and there are many opportunities in other developing countries. SWOT Analysis of Armani Strengths Weaknesses 1. Strong brand equity 2. Good financial position. 3. Heavily segmented 4. Strong global reach. 1. High competition. 2. Volatile economic competitions Opportunities Threats 1. Expansion to new niches around the world. 2. Opportunity to improve offerings to customers 3. Linkage to popular figues 1. Loss of market share 2. Loss of income and revenue Objectives The objectives of Armanis 2012 Marketing Campaign was: 1. To expand market share in existing markets by 20% 2. To improve entry into China and the Asia-Pacific region by 30% 3. To penetrate the markets with the new products of the various brands. Strategy 1. Through the improved marketing campaigns and systems to acquire Attention. 2. By increasing financial contributions to various campaigns and integrate strategically to improve interest. 3. Acquire important outlets in the United States, China and other countries. 4. Improve international expansion contracts by liberalizing them. Tactics 1. Increasing the use of stars and other figures. 2. Increase the offering to global icons like Cristiano Ronaldo and increase the exposure of such stars and their linkage to Armani. 3. Spend more money on social media networks and improve non-structured and non-formal advertising channels and systems. 4. Incrementally enter contracts with local marketing companies to enhance the market reach. 5. Change Armani signage and integrate a new marketing signature statement 6. Increase awareness on fake Armani brands Action Activity Deadline Sign up 20% more stars March 2013 Increase star activities by another 30% June 2013 Expand social media presence by 50% September 2013 Change all Armani signage in shops around the world September 2013 Launch first phase of fake brand awareness campaign March 2013. Control Regular reports must be sent to the various quarters. Emergency meetings must be held to discuss the results and findings Improve legal activities and connection from time to time. Read More