Luxury Fashion Branding Strategy of Givenchy - Case Study Example

Givenchy Luxury Fashion Branding Strategy Affiliation Executive Summary This is research work that focuses on Givenchy Luxurious and Fashion Company that has institutionalized the concept of branding. It identifies various concepts of branding as applied in the fashion industry with special focus on brand definition and function, brand identity, Brand equity and Kapferer Branding System. It examines the extend of impact of Branding in marketing; identify challenges and current branding and marketing trends in the wake of modern technology. The focus is on the following key concepts: 1. Givenchy Branding strategy and Business skills 2. Brand Identity 3. Branding and Marketing Challenges. 4. Target Market and Product positioning The paper concludes by identifying Givenchy as an example of a luxurious fashion company that has put branding a number one competitive strategy. It recommends that the company should focus on relative pricing strategy to expand luxurious fashion to wider consumers. Table of Contents Executive Summary 2 Introduction 4 Research and Analysis 4 Givenchy Brand Strategy and Business Skills 5 Summary Theoretical Model of Customers’ Motivations in Fashion Brands 6 6 Brand Identity 7 Target Market and Strategic Positioning 10 Points of Parity & Difference 10 12 Conclusions and Recommendation 14 References 15 List of Appendixes 17 Introduction Givenchy is a Fench luxury brand of clothing, perfumes, cosmetics and accessories. Founded in 1952 by Hubert Givenchy, the branding company has traversed the stiff marketing forces over the last seven decades with strategic business approaches. Notably, in 1993 the luxury branding company made sales worth $176 million making it the second apparel division owned by the LVMH group (Sencer 2004). Fashions and designs keep coming and going, the reason of the company persistent success lies squarely on its branding, marketing, and strategic pricing policies. There has been a tremendous navigation of market forces that was anchored on building a strong brand for customers Zheng et al., (2012) states that in the wake of increased globalization the apparel fashion designer is now predominantly present across the globe. It has 42% share market in Europe, 18% in Asia-Pacific, 14% in America and 7% in the Middle East. It is therefore doing well in both local and global market. Certainly, branding and fashion industry is perhaps the most dynamic business. By 2005 when Ricardo took over the leadership, there were hundreds of designs that were already in the market (Mosca 2008). Evidently, the Nadia heeled sandals, Madona iPhone case and the Antigona handbags are evidence of creativity and innovative branding strategies. Research and Analysis Givenchy Strategy and creativity has been immense in the fashion and design industry. It has transformed its young and energetic employees into an outlet of fashion creativity. It started as a relatively young luxury design in 1952 and it was hardly known in the midst of bigger competitors like Chanel, YSL , Dior and many others. The growth was systematic and it attained its peak upon arrival of new director in 2005 (Mosca 2008). It builds a strong competitive edge over the others by investing in over hundred fashion designs in handbag, clothing, and footwear. Notably, it embarked on using celebrities as ambassadors of products and the revenue greatly improved. In 2008, the fashion designed RTW t-shirt became Kanye West trademark thus selling the group’s products across the globe (Mc Cartney 2012). Celebrity selling is one of the important creativity that has immediate returns in fashion and luxury industry. It opens the scope of the product to wider consumers. There are a number of designs that have continued to stamp the unquestionable position of the company in the competitive market. Street wear t-shirts, Nightingale handbags among others are primary products of Givenchy that have helped the company cut a name in competitive luxury fashion brands industry. Givenchy Brand Strategy and Business Skills In order to meet the market dynamic and aggressive fashion marketing and advertisements, the company developed branding strategy that is anchored on the Kapferer brand identity concept. Under this concept, branding is described as an outward expression that includes trademark, logos and visual appearance. In establishing brand identity, the management team of this luxurious fashion wears developed a logo and trademark that is put on its products. Certainly, branding of the business’s products helps to identify the uniqueness over those of competitor (Fletcher & Tham 2014). Summary Theoretical Model of Customers’ Motivations in Fashion Brands Personal Values Ethnocentrisms Materialism Urge for Uniqueness Social Recognition Social status Elegance Decency Customers Demographics Age (Youth) Gender (Women) Income level Purchasing Intentions Fashion Recognition Social class identity Brand Identity Under Jean-Noel description of brand identity prism, the company has utilized the six dimension of a theoretical brand. Firstly, is the physique of the products in recognizing the importance of keeping the luxurious look of the product, the company. Some of its leading designs such as Nightingale handbag, leather flap wallet, Geore leather bag and Shark tooth zip around wallet are examples of exemplary product innovation and skills on differentiating the handbag industry into a luxurious brand (Mosca 2008). As a number one priority, the business strives to ensure that the customers’ unique needs are met through providing posh products in a wide range. Secondly, the products attract personality character, the Kanye West, and t-shirt brand created huge strategic sales because of identity and celebrity association. It was a strategic business innovation that saw the company increased its sales by over 10% in 2008 (Delagarde et al., 2011). According to Kapferer, personality is an important branding trait. It accomplishes its marketing and branding objective through combination of color, specific printing and uses specific design. Using this branding trait, the luxurious designer produced the Madonna sweatshirt that has widely impressed consumers due to color pattern, personality drawing, and the cotton material that is refined. Moreover, branding has been enhanced by personality show with Kanye West partnership with Kim Kardashian ready-to-wear collection show, giving prominence to Givenchy haute couture, t-shirts, and most notably the Kanye jacket. Use of celebrity strengthens personality prism according to Kapferer model (Mosca 2008). It uses personality traits such as fame, geniality and energy to build on the product brand. It enhances the brand image by Kanye music, which is certainly globally known. His music became an ambassador for the company branding strategic plan. Moreover, the products combine other attributes that have help the business place itself strategically across different cultures include sensitivity to cultural diversity. It is one of the branding attributes envisioned by Kapferer brand identity theory. Notably, the American dream and Madonna sweat t-shirts appeals to many women in American market. Tribal silk top and Nightingale bag appear to be appealing to Asian markets (Mosca 2008). The extensive marketing research conducted by this fashion group culminates as a strategic plan that aims at producing relevant; cultural-sensitive products that help meet the luxurious needs of the consumers. Kapferer Brand Identity In addition, the fashion firm builds its brand on Kapferer brand identity prim 3 and 4. Under these branding strategies, the companies accomplish branding through celebrity identification. As celebrity sales strive to build identity and expand market share, the fifth prism employs the reflection on consumers. It is evident that the diverse fashion designs are built on solid ground on specific consumers’ taste that is true to the culture identity. Many fashion designers fail within the first few years of operation because of failure to align their products to consumer needs. In Givenchy, the consumers affordability, cultural designs and self-image informs the decision of the over hundred varieties of apparel fashion. According to Kapferer Brand Identity Prisms, the brand managers should be mandated with assessment of strengths and weakness of their branding approaches using the six prisms (Jackson & Shaw 2014). Evidently, the company’s marketing agents seems to borrow from these six critical pillars of successful branding. The success of these strategies has seen growth of the fashion designer from a young fashion designer in 1950s to a multibillion industry that is now spread across the globe (Dillion 2012). It has envisioned the need to build a competitive branding strategy, establish global marketing surveys and remain culturally competent in fashion and design. Figure 1: Givenchy-3 Tie Prism in Branding Strategy Role of Ricardo Tisci and Haute Couture In 2005, Tisci was named as the Creative Director for Givenchy fashion and by 2008; he launched womens haute wear and ready wear (Jackson & Shaw 2009). Besides, his apparent fashion with Gothic touches and space-age minimalism created an impressive market brand for the company. According to fashion and designers critics, Cathy Horyn of New York Times and Suzy Menkes of International Herald Tribune identified that the haute couture design was less relevant in market than ordinary jumpers and t-shirts (Delagarde et al., 2011). However, Tisci identifies that during the haute couture launch, he had only five customers, but today the brand is attracted global admiration and has become an important branding and marketing strategy. Despite the criticism, the New York Times identified Risci as the answer that would revitalize Givenchy creativity and branding strategy. Sadly, Riccardo Tisci growing influence has overtime outcome the Givenchy brand identity because of his relationship with celebrities such as Kanye West, Madonna and Kim. Branding and Marketing Challenges As a luxury fashion company, it faces myriad of challenges mainly from competitive market and dynamic consumers’ taste and preference. There has been slow change in the branding strategy to adopt the intrinsic use of online marketing. In addition, creation of consumer’s loyalty in apparel fashion industry is quite difficult posing serious threats to future sustainability of the market. Besides, the company incurs huge amount of cash in marketing, creation of branding and sustaining the executive designs. Sadly, the high prices continue to bite into the profits. As a business, balancing profitability and consumers diverse needs is monumental challenge, and this is the case at the Givenchy. Meeting the consumers’ executive luxury is quite expensive and pricing changes poses significant challenge to sales and profitability (Mosca 2008). Despite existence of myriad challenges, the fashion designers continue to wade through rising current trends. Firstly, marketing has seen highest level of technological advancement that has seen companies open websites and social media platforms. Marketing through online and extension of customer services that include inquiries and complains through online platform has drastically shifted mass media advertisement and road show campaigns. In fashion industry, globalization is now a reality. Over the past decade, there has been legal and bottlenecks removal leading to free trade policies among the European Union markets and U.S under global partnership. These latest trends have been instrumental in expanding the marketing portfolio and diverting fashion wears to fit the larger market. It has been achieved through intensive capital investment and marketing. Although globalizing businesses especially fashion designs is a huge expenditure, it is a step worth pursuing. Target Market and Strategic Positioning Like many luxurious businesses, the Givenchy target market is informed by its market survey indicators. According to its 2003 market study, it showed that over 80% of the consumers of fashion and luxurious products are female and male age 21 years (Fletcher & Tham 2014). Besides, the target is on the wealthy socioeconomic status who has a higher lifestyle consciousness. Besides, the teenagers and young adults who attend fashion shows and celebrity concerts were strategically identified as potential buyers. In line with this survey, the company embarked on celebrity sales strategy, fashion displays in fashion forum and online websites display that would attract the possible target population. In addition, the luxurious fashion dealers build their target through strategic locations displays that would provoke impulse buying. Although the strategy is not the single target identity, it utilizes susceptibility of buyers by providing as excellent physical properties of its products (Dillion 2012). Points of Parity & Difference Target Market The company products, has narrowed, but huge consumer-based. Unlike many apparel designers that target teenagers and youths, these products, targets male and female above age of 21. In addition, those who closely follow celebrities are a good market for the company’s product. Strategic Positioning In the apparel industry, Givenchy has placed itself as a diverse product dealer that cut across American, European Union and Asia. Unlike many firms within this industry, its products are established along cultural competence. Brand Identity Its branding strategy is established on myriad mass media marketing and most important, the celebrity shows. Unique in its brands, it has successfully use Kanye West, Kim and Madona celebrity positions to expand its product brands. Keller’s Customer Base Brand Equity (CBBE) model entails of building blocks considering both tangible and intangible fundamentals of building brand. Accordingly, resonance is achived through four levels namely, brand identity, meaning, response and relationship. Figure 2, below shows CBBE for Givenchy. Marketing Strategy Different from many other firms, Givenchy embarked on serious marketing marketing efforts to stamp its positioning the competitive market. It does two things unique, first it has celebrity marketing to reach its wider target and a vibrant online marketing platform. Technology It has an overwhelming websites and online space that has shifted company’s product displays. While may fashion dealers remain with physical displays at retail outlets, Givenchy products is all over in the online space. Globalization At Givenchy, the concept of globalization is now a reality. It has been accomplished through creation of products that attract fashion designers in different cultures. As many apparel designers remain localized, Givenchy is now well established in Europe, America and now in India, China and Japan Figure 2: Customer Base Brand Equity Model (CBBE) Discussion Marketing is about awareness creation and persuasion of potential buyers. In order to succeed in fashion and design industry branding products is the initial step towards creating a market niche. Based on the research on the Givenchy Company, three marketing approaches are clear. Firstly, is the branding that places a product strategically in the market. As a fashion entity in the ever-dynamic market, branding helps achieve a number of advantages. Brand identity is a critical element in brand system. It is a result of deliberate effort that a company undertakes to ensure that the rules for branding gestures are articulated. It explains how the brand created will align the sales and marketing activities towards realizing the organization mission and philosophy. Successful companies like those that Givenchy derives benefit from brand identity through using the branding mechanism to pursue partnership and integration of organizational creativity and innovation. Strong brands have good physique and defined edges; every entry in the competitive market certainly recognizes the presence of this fashion design company due to its strong brand. There are many ways to explain the role of brand identity and its strategic advantage to the company. According to “Brand Identity theory,” it identifies the three key elements as the fundamental basis of marketing significance (Mc Cartney 2012). Firstly, it identifies the capabilities, what the organization do. It identifies ability of brand to do well in the market as the ultimate importance of creating a brand. Brand capabilities include quality, reliability, innovation and appropriateness. The fashion industry builds its brand through quality and appropriateness. Secondly, it involves internal values and culture; it identifies what the organization care about most. In Givenchy, the focus is on building consumer loyalty on its products and production of culturally competent fashion designs across the multicultural consumers. It explains why there is consistent pursuit to expand market in Japan and Far East countries. Moreover, it is the reason of existent online marketing within the organization. The Brand Identity also identifies the noble purpose of brand, the need to remain up to date in fashion and designs and the market surveys to navigate through other brands in the market. Furthermore, the company incorporates personality; this focuses on how to deliver the designs. Evidently, many brands have similar identities, in order to place the organization ahead of competitors, the employees creatively study fashions and offer the latest designs in order to ensure he business remains competitive and relevant (Mosca 2008). Branding help to build and sustain consumer’s loyalty to the products because it creates consistency and a personal attraction to the consumer. In apparel, fashion, sustainability of consumers is the biggest challenge. The company has overcome this roadblock by ensuring that its products meet specific target at each outlet. Besides, consumers today simply browse and buy products, in line with this, the company has established a website, and social media sites where displays are made and possible transaction undertaken. Using theoretical framework (Kapferer Brand Prism system), it identifies an outline of attributes that a product brand should follow. In line with this theoretical application, the company showed an iconic case study of the six steps of branding. It identifies the basic marketing competence is achieved by creation of product physical attraction, building on the personality and most importantly establishing product loyalty (Fletcher & Tham 2014). Conclusions and Recommendation Brand identity model is the cornerstone in marketing and sales. It allows for a systematic approach to creation and sustainability. As a marketing tool, branding allows a company to cut an edge in the competitive market and establish customer loyalty to the products. Brand identity is a product of creative and innovative employees and the organizations should strive to remain unique within the same industry. At Givenchy, three critical areas should improve. First, there should be more vibrant online marketing and institutionalization of this platform into a new window of opportunity. Secondly, the company should improve on time response to a consumer request, as part of strategic marketing goal, timely service is a number one priority. Despite the diverse orders and dynamic sales pattern, the company should strive to expand luxury fashion designs to accommodate middle class consumers. They are big consumer group that should be attracted through a fair pricing mechanism; this allows incorporation of brand equity. Branding equity identifies all socioeconomic groups and offers relative brands with relative pricing (Zheng et al., 2012). References Delagarde, M., Bayka, J., & Zara. 2011. Differentiation strategies in the fashion industry: Zara case. Berlin: LAP Lambert Academic Publishing. Dillon, S. 2012. The fundamentals of fashion management. Lausanne: AVA Academia. Fletcher, K., & Tham, M. (2014). Routledge Handbook of Sustainability and Fashion. Hoboken: Taylor and Francis. Jackson, T., & Shaw, D. 2009. Mastering fashion marketing. Basingstoke [England: Palgrave Macmillan. McCartney, S. 2012. 100 Great Branding Ideas. London: Marshall Cavendish Business. Mosca, F. 2008. Market-Driven Management in Fashion and Luxury Industries. Sencer, G., Zmir Institute of Technology. (2004). Design and Management of Brand Identity With an Action Research in Turkish Fashion Industry. s.l.: s.n. Zheng, J., Chiu, C., & Choi, T. 2012. Optimal Advertising and Pricing Strategies for Luxury Fashion Brands With Social Influences. IEEE Transactions on Systems, Man, and Cybernetics. doi:10.1109/TSMCA.2011.2178828 List of Appendixes Appendix 1: Rating of Givenchy Brands Rankings where listed Year Position Fashion Brands Ranked by Digital IQ Score By L2 ThinkTank 2013 77 Fashion Brands Ranked by Digital IQ Score By L2 ThinkTank 2012 62 Luxury Brands Web Presence Ranking in China By Labbrand, Linkfluence 2012 18 Fashion Brands Ranked by Digital IQ Score By L2 ThinkTank 2011 48 FranBrand Top 100 French Brands By MPP Consulting 2011 55 Prestige 100 Facebook IQ By L2 ThinkTank 2011 88 FranBrand Top 100 French Brands By MPP Consulting 2010 83 Appendix 2: Kanye West T-Shirt Appendix 3: Givenchy Nightingale Handbag Read More