Ralph Lauren: Brand Architecture - Case Study Example

Ralph Lauren: Brand Architecture Introduction Brand architecture refers to the structure of various brands and their interrelationships existing in a company and includes managing of the brands in marketing. In the case of Ralph Lauren the brand stands for fashion and quality and the functional aspects are associated with lifestyle, fashion and social identity. The company sells apparels for men and women, fragrances, footwear and other accessories. Seamlessly integrated brand architecture with a good brand relationship spectrum will result in synergy in the operations. The company is listed in New York Stock Exchange. “The Company's brand names, which include Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Black Label, Blue Label, Lauren by Ralph Lauren, RRL, RLX, Ralph Lauren Childrenswear, Denim & Supply Ralph Lauren, Chaps and Club Monaco, constitute one of the world's most widely recognized families of consumer brands” (Ralph Lauren, 2013). The company also operates restaurants and retail stores in several countries under its brand name and some of the lines such as Polo sport and Polo denim have been retired in line with the corporate objectives. Brand’s position Ries and Trout define brand positioning as "an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances" (2001, p.19). The space for a product in brand relationship spectrum in relation to branded-house as in the case of Ralph Lauren should justify enhancement in value of the product, credibility in its association and the communication as perceived by consumers. However, these criteria would vary in the case of house of brands as it involves creation or existence of several separate brands. Hogan (n.d.) stated “Lauren's clothing is positioned as the choice "for people who care more about looking good than being fashionable." This is a gutsy position to take in the designer's arena-and one that only recently succeeded in Lauren being named designer of the year by the Council of Fashion Designers of America. The brand attributes are simple, clean, aspirational and upscale. As Fortune magazine has pointed out, "Lauren doesn't make his runway models look like hookers from space." Ralph Lauren’s meticulous line extension to all the products speaks about its brand positioning and brand management. The fashion brands are developed with a view to enhance the profile or personality of the consumers in tune with their expectations taking into account various aspects such as cultural background of the consumers, demographics, social status and attitude shaped up by psychological factors which are individualistic in nature based on self-concept theory. Ralph Lauren places emphasis on social identity in brand architecture rather than flamboyance or conspicuousness. Target consumers A meaningful analysis of brand portfolio needs to be made from the profiles of the consumers targeted. Consumers’ tastes and fashions are the foundation for development of brand architecture and marketing strategies. The relationship dimension is the basis for consumer-brand relationship mapping. Maclnnis et al (2009, p. ix) stated “Brand relationships, much like committed partnerships, take many forms. They may be infused with emotion and involve obsessive thought, or they can be simply habitual and subsequently less emotionally charged and cognitively based.” Therefore, constant review of changing tastes and fashions of the customers is essential in fashion industry. The important attributes with reference to the target consumers such as income levels, the concentration level of target audience and unique characteristics of consumers form the foundation for brand building. Spending patterns of individuals varies in relation to factors such as gender, age, occupation and education as reflected in brand architecture of Ralph Lauren and the assessment of spending patterns is important for segmentation. Different segments will have different personalities and their attitudes toward fashion vary. Therefore, differentiation in style and fashion is very important in brand positioning. Introducing innovations and discarding obsolete concepts are very important in keeping a brand vibrant. Brand architecture Allocation of the resources among the brands for organisation and management aims at leveraging their strengths for the benefit of enhancing shareholder value. There are primarily two types of brands namely ‘manufacturer brand’ which is owned by the manufacturer and ‘Distributor brand’ using labels created and owned by the distributor. The companies may promote single brand as a Master Brand that is dominant with several sub-brands or variants. In this type of brand architecture, common advertising and product promotion would improve operational efficiency in distribution and marketing of products. This is also called as ‘branded-house’. Apple is an example with Apple iPod, iPhone, etc. Brand architecture in the case of ‘house of brands’ the company owns several brands in different names like Gillette, Pampers, etc, of Proctor & Gamble, and some companies use mix of both these architectures. Aaker (2000, p. 12) stated “In the house of brands strategy, the brands are independent. Endorsed brands (such as Simply Home from Campbell's, or Polo Jeans by Ralph Lauren) are still independent, but they are also endorsed by another brand, usually an organizational brand.” This endorsement is an important tool which lends credibility to the product. It endorses the brand promise to the consumers and thereby ensures class association. In Annexure-I brand architecture of Ralph Lauren relating to Menswear is shown for menswear and accessories. Like menswear and accessories stores also reflect brand with unique features. Primarily Ralph Lauren or the Polo Logo displayed below is associated with every product, except in the case of brands, American Living, Club Monaco and Chaps. Master brand The brand management involves planning, communicating and positioning. The experience of the consumer in relation to the brand develops his attachment to the product. Barron et al (2013) stated “The Ralph Lauren brand portfolio follows a master brand “endorsement strategy.” The various product lines within the Ralph Lauren portfolio display a clear connection to the Ralph Lauren master brand: Polo Ralph Lauren, RLX, Rugby Ralph Lauren, etc. Even those product lines that do not have Ralph Lauren in their names are linked to the Ralph Lauren master brand in the market. Management of master brand calls for continuous interaction with the consumers and marketing professionals for assessing the brand equity based on the strengths and weaknesses noticed for improving customer service and removing the misconceptions if any in the minds of the consumers. Brand equity Ralph Lauren's focus on luxurious lifestyle makes its products recognized for its utility, quality, style and presentation which are the essential components of brand equity. These attributes enhance the goodwill enjoyed by the brand. The consumers’ perceptions could also be measured based on the other important dimensions such as familiarity, uniqueness and popularity. Logical grouping of brands is done for Brand Grouping in Ralph Laurent Model based on the common characteristics or features. The dimensions of brand equity undergo changes over a period of time and hence brand architecture auditing on a regular basis is essential to assess the brands and sub-brands to identify the inconsistencies or obsolescence in brand portfolio. Brand extension The sub-brands such as Polo by Ralph Lauren and Polo Sport by Ralph Lauren have been useful in expanding into various marketing segments without affecting brand value. Brand extension could be effectively used for leveraging brand equity. Hogan (n.d.) stated “most of Ralph Lauren's revenue comes from 26 licensees, rather than from his own clothing lines. The bottom line: licensing is a wonderful way to grow a brand, as long as it is managed appropriately.” However, licensing system has been restructured and some of the licences granted during the earlier years have been cancelled. Brand extension needs to be carefully reviewed after evaluating its impact on the existing brand profile in terms of consistency. According to Kotler and Armstrong (2008, p. 224) “The extension may confuse the image of the main brand. And if a brand extension fails, it may harm consumer attitudes toward the other products carrying the same brand name. Further, a brand name may not be appropriate to a particular new product, even if it is well made and satisfying…” However, allowing access to brand could be considered if there is no image dilution involved in the proposals, considering the huge infrastructural facilities developed worldwide for marketing and the company’s expertise in successful brand management over years. Brand extension model of Unilever could be developed by creating new brands for marketing variety of consumer goods and accessories. For example, the important brands of Unilever like ‘Sunsilk’ and ‘Lux’ have several related products such as soaps, shampoos, hairspray and liquid soap under one umbrella. This could be useful in reaching out the customers in different sections of the society in different income groups with different brands. This should be aimed at building ‘brand personality’ imbibing traits and characteristics to a brand. This differentiation in the profile of the consumers would yield overall stability to the portfolio of brands by targeting different categories of consumers though different strategies with regard to advertising and promotion. Conclusion Developing brand identity in relation to the traits and behaviours of consumers could lead to brand loyalty that is guided by principles, features and monetary considerations. Consumer’s commitment to a brand is based on his/her instincts and principles in terms of utility, comfort, style or status which cannot be uniform for all. Therefore, increasing market share or expanding business should be viewed from creation of brands and brand extension for a sustainable and balanced growth in the long run. References Aaker, D. A., 2000. The Brand Relationship Spectrum: The Key to the Brand Architecture Challenge. CALIFORNIA MANAGEMENT REVIEW VOL 42, NO. 4 SUMMER 2000. Barron, J., Purewal, J. and Pabst, C., 2013. Forget the Tradeoff: Drive Business Growth Using Your Master Brand, Prophet, [online] Available at: [Accessed 27 March 2013]. Hogan, S. Positioning a brand in the market place, Lippincott, [online] Available at: [Accessed 27 March 2013]. Kotler, P., and Armstron, G., 2008. Principles of Marketing, 12th Edition, Pearson Education, New Delhi. Maclnnis, D. J., Park, C. W. and Priester, F. R. (Ed.), 2009. Handbook of Brand Relationships, Society for Consumer Psychology, New York. Ralph Lauren, 2013. Company Profile, Company’s Website. [online] Available at: [Accessed 27 March 2013]. Ries, A. and Trout, J., 2001. Positioning: The Battle For Your Mind, McGraw-Hill. Annexure - I Ralph Lauren Brand Architecture Ralph Lauren Brand Architecture (Menswear and Accessories) Regular Sportswear Sub-brands Accessories Stores Ralph Lauren Golf Sportswear Chaps RL Fragrances Flagship Stores Black Label Tennis Sportswear American Living PL Leather goods Retail Stores Purple Label Rugby Ralph Club Monaco RL Eyewear Factory Stores RRL* RLX for outdoor sports Others Stores-Menswear *High quality denim Polo sports – discontinued Polo Jeans - discontinued Read More