Luxury Brand Management for Mont Blanc - Term Paper Example

Luxury Brand Management for Mont Blanc Executive Summary Mont Blanc has started its business by producing writing instruments and then it became a key player in manufacturing leather goods. It has been serving its customers for over hundred years by producing quality goods. The company not only focused on quality but also on its unique designs as well as durability which attracted a lot of customers towards its products. It manufactured products for both male as well as female customers. Due to the brand loyalty that the company has gained brand loyalty by serving its customers for a longer period of time, it has growing demands for its products as well as a rise in its annual sales. As the company manufactures leather goods which are on a high demand in the international markets, it faces challenges in setting up its brand position while competing with its rivals. The company through its innovative technology and improved designs captures a larger market share for its products. The manufacturers of Mont Blanc plans to expand its business to the furniture sector as well and hence the company started designing leather sofas with special mountain tip buttons that would make the furniture look more attractive for the target customers. The company even organizes events to promote its new business and create brand awareness in the international market. Table of Contents Table of Contents 2 Introduction to the brand 3 Brand Analysis 3 SWOT Analysis 5 Recommended Strategy for Luxury Brand Development and Growth 7 Proposal for International Event to support Luxury Brand Growth 8 Summary of critical success factors 9 Bibliography 10 Appendices 12 Introduction to the brand Mont Blanc is an international manufacturer for leather goods such as bags, watches and purse and has gained a brand name in the international market. It has been founded in the year 1906 and is serving its loyal customers for a longer period of time (Thakor and Lavack, 2003). It focuses mainly on manufacturing writing instruments for its huge customer base and is planning to expand its business in producing leather sofa that is highly demanded by the customers. The company developed its brand name using new innovative concepts for watch making that satisfy the customers. The company uses the most modern technologies to introduce their new inventions in the market (Kapferer and Bastien, 2009). The aim of this research would be to carry out the analysis on the strategies used by the managers within the company to invent new products. This project would give the researcher a scope to carry out an overall study on the brand management of the company and the methodology planned by the company to set up the future growth path (Sanders and Tsimakhovich, 2014). Since the company has been serving its customers for a longer period of time by carrying out the research, the researcher would understand the company’s progress on a whole. Brand Analysis Mont Blanc has set up its business in the international market by producing leather goods for its customers and the company is planning to expand its business by producing leather sofa with special mountain tip buttons produced by Mont Blanc (Phau and Prendergast, 2000). However, the study reveals that the company has served its loyal customers for a longer period of time. So far, the company has manufactured a lot of products that are made out of leather. Mont Blanc uses an innovative strategy for watch making starting from planning for introducing the new product to ultimate manufacturing of the product as well as quality testing (Bryson and Atwal, 2014). The company believes in producing quality goods for its customers in order to gain brand loyalty. Hence, the company has been successful in drawing large number of products for its customers. The manufacturers of Mont Blanc have the capability to produce mechanical time-pieces. They are highly motivated by the managers to face challenges related to the customer demands in the market (De Barnier, Falcy and Valette-Florence, 2012). The company produces improved quality of watches with utmost perfection and durability that the customers can use for a longer period of time (Reddy. et al., 2009). The manufacturers of Mont Blanc have inculcated some qualities in them such as creativity that is needed to produce new products for its customers and also in order to compete with the rivals in the market (Carcano, 2013). Despite facing a lot of competition in the international market, the company has successfully set up its brand name as the world’s largest manufacturer of leather goods which are of high quality as well as durability. The other qualities that the manufacturers have inculcated in them is that of individuality as well as exclusive craftsmanship that has contributed to the company’s success factor in setting up its brand position (Veg-Sala and Roux, 2014). The manufacturers used a sophisticated mechanism for their watches that provided the products with durability. Mont Blanc incorporates in their products the traditional aspects as well as the style that goes with the new trend emerging in the modern world (Sampson, 2008). The company faces an increasing demand for the shape of the products, style that suits its target customers as well as workmanship that is already reflected in its manufactured products. The company has been producing other goods apart from watches (Martin Martin and Cervino, 2011). The company has been known to produce belts, eyewear and pens which have proved to be quiet useful to the customers. It sells its products through its huge network of authorized retailers dealing with leather goods (Husic and Cicic, 2009). The company’s total sales have grown to a greater extent and it plans to further expand its business by producing leather furniture. The managers have planned out strategies for setting up its furniture business. The furniture business of Mont Blanc would mainly specialize in manufacturing of sofas of various designs according to the demands of the customers. It has planned to use special type of mountain tip buttons specially manufactured by the craftsmen belonging to Mont Blanc (Shen, Bei and Chu, 2011). SWOT Analysis Strengths The company has efficient craftsmen who create and invent new products and introduce in the markets. The managers have the potentiality to conduct the business smoothly and the company has gained a lot of brand loyalty by serving quality products to the customers. The company also aims to manufacture new products as per the demands of the customers (Husic and Cicic, 2009). The manufacturers are creative enough to invent new products that would lead to development of the company. The customers consider the products supplied by the company to be reliable (Ko and Lee, 2011). Weakness The company has been serving its customers for a longer period of time and has developed a lot of brand loyalty from the loyal customers and hence, the company often finds it challenging to meet the rising demands of customers. Due to the unique design and efficient craftsmanship, the manufacturers take a lot of time to design each product (Phau and Prendergast, 2000). Opportunities Due to the presence of efficient craftsmen within the company, it has the ability to produce new products and attract the customers. By manufacturing unique and quality products, Mont Blanc has the potentiality to compete with the rivals in the international markets. The unique designs and quality products supplied by the company are highly durable (Phau and Prendergast, 2000). The new product that the company is planning to launch in the market is expected to experience a huge customer satisfaction and would attract new customers. Threats The company mostly focuses on producing leather goods which has a huge demand in the international market. So, there are lots of competitors emerging in the market and they are expected to give a huge competition to Mont Blanc. Further, the strategies used by Mont Blanc are time consuming and hence, there is a possibility that the company may not be able to meet the growing demand (Phau and Prendergast, 2000). In order to meet the rising demand, the company may have to produce large number of products and there is a possibility of deterioration of quality of the products produced by the company (Rice, 2012). Recommended Strategy for Luxury Brand Development and Growth Mont Blanc produces a large number of quality goods made out of leather. The company aims at serving its customers with products that have quality as well as the durability and thus, the company gains a lot of brand loyalty for its products (Yu, Lin and Chen, 2013). Mont Blanc is further planning to expand its business in the international markets by producing leather furniture that is highly demanded by the customers (Kapferer and Bastien, 2009). The mountain tip buttons of the sofas are to be specially manufactured by the company such that the sofas have a unique design and attract the customers. It is highly recommended for the company to manufacture the sofas that can be used for luxury purposes in the drawing rooms, conference halls in hotels and even in lounges. The product would serve as a great purpose for interior decoration and satisfy the customers those who are fond of decorating their rooms. The mission of the company is to satisfy its customers with the products that are demanded by them as well as maintain quality and durability in their products (Kapferer and Bastien, 2009). Further, the company can also plan to manufacture uniquely designed products that attract large number of customers. The products manufactured by the company are specially designed by the efficient craftsmen and hence the products are capable of competing with other rivals in the international markets. Since the company manufactures leather goods, it is expected to face a lot of competition in the international markets. Hence, the manufacturers of Mont Blanc are recommended to use technological innovation for their products such that they can give a healthy competition to the rivals and grab the market share by creating a huge customer base. The company has marketed a wide range of products because of its efficient manufacturers and the managers who are capable of understanding the growing demands of the customers for their products (Souiden, M’Saad and Pons, 2011). Mont Blanc was also known for producing good quality pens and the company makes sure that the shoppers in the brand outlets of the company are expected to be exposed to multiple product lines (Kapferer and Bastien, 2009). The company manufactures products both for the male as well as female customers. The aim of the company is to attract both male and female customers towards their multiple product lines. So Mont Blanc manufactures variety of products for them. For example, female customers can enter the brand outlets for purchasing products for their male counterparts as well as for themselves (Kapferer and Bastien, 2009). Hence, the manufacturers of the company plan to diversify its products range by manufacturing products suitable for all types of customers in the international markets. Thus, it can be said that the company has been successful in satisfying a large number of customers. Proposal for International Event to support Luxury Brand Growth In case if Mont Blanc organizes programs for creating brand awareness, it would be beneficial for the company because through these programs, it can attract many target customers for its products (Jackson, 2004). The international events can also play a key role for the corporate social responsibility that the company needs to undertake in order to set up its business. The events help to gather customer feedback regarding their product and also to understand the demand of the customers that would contribute to the company’s growth prospect (Parment, 2008). The managers can plan out their strategies in order to invent new products by following the feedback given by the customers. International events can also play a key role in advertising the company’s products in the international market and thus draw the attention of both male and female customers. International events help in promotion of the luxury products that are produced by the company (da Silva Lopes and Casson, 2007). For example, the company is planning to expand its business by manufacturing leather furniture for which the company can organize events to inform the target customers about their new launch. Summary of critical success factors Mont Blanc started its business as a manufacturer of writing materials like pens. It has developed a brand name by producing various types of pens that are suitable for both men and women. Later on, the company started producing leather goods.. It has gained a huge brand loyalty by serving quality goods to the customers. Its products comprised of unique designs that attracted a lot of customers and thus the company could create a huge customer base. The specialized products of the company were created by efficient craftsmen belonging to the company. Mont Blanc faced a huge competition in the international market from its rivals producing leather goods. However, the company has been able to capture a larger market share within the economy. The company is planning to expand its business by manufacturing leather furniture, especially sofa, which is highly demanded by some customers who are fond of luxury goods. The sofas that the company plans to manufacture are to be used in conference halls, hotels and lounges. It has planned for uniquely designed furniture that would attract a lot of customers to their brand outlets. It would possibly increase their annual sales figures. It is highly recommended that the company organizes international events to promote their new product in the international market. These events would also help the company to gather customer feedback and the company can plan out its strategies accordingly. Bibliography Bryson, D. and Atwal, G., 2014. Going beyond Misconceptions: Avoiding Pitfalls on the Route to Sustainable Growth. Luxury Brands in Emerging Markets, p. 201. Carcano, L., 2013. Strategic Management and Sustainability in Luxury Companies: The IWC Case. Journal of Corporate Citizenship, 2013(52), pp. 36-54. da Silva Lopes, T. and Casson, M., 2007. Entrepreneurship and the development of global brands. Business History Review, 81(4), pp. 651-680. De Barnier, V., Falcy, S. and Valette-Florence, P., 2012. Do consumers perceive three levels of luxury? A comparison of accessible, intermediate and inaccessible luxury brands. Journal of Brand Management, 19(7), pp. 623-636. Husic, M. and Cicic, M., 2009. Luxury consumption factors. Journal of Fashion Marketing and Management: An International Journal, 13(2), pp. 231-245. Jackson, T. 2004. A contemporary analysis of global luxury brands.International retail marketing, pp.155-169. Kapferer, J. N. and Bastien, V., 2009. The specificity of luxury management: Turning marketing upside down. Journal of Brand Management, 16(5), pp. 311-322. Ko, E. J. and Lee, S. G., 2011. Cultural heritage fashion branding in Asia.Tourism Sensemaking: Strategies to Give Meaning to Experience (Advances in Culture, Tourism and Hospitality Research, Volume 5), Emerald Group Publishing Limited, 5, pp. 89-109. Martin Martin, O. and Cervino, J., 2011. Towards an integrative framework of brand country of origin recognition determinants: A cross-classified hierarchical model. International Marketing Review, 28(6), pp. 530-558. Parment, A., 2008. Distribution strategies for volume and premium brands in highly competitive consumer markets. Journal of Retailing and Consumer Services, 15(4), pp. 250-265. Phau, I. and Prendergast, G., 2000. Consuming luxury brands: the relevance of the ‘rarity principle’. The Journal of Brand Management, 8(2), pp. 122-138. Reddy, M., Terblanche, N., Pitt, L. and Parent, M., 2009. How far can luxury brands travel? Avoiding the pitfalls of luxury brand extension. Business Horizons, 52(2), pp. 187-197. Rice, G., 2012. Book review—Transformation in China and beyond: Implications for global leaders. Global Business and Organizational Excellence, 31(6), pp. 98-103. Sampson, J., 2008. Marketing: the retail experience and value creation: branding. Journal of Marketing, pp. 30-31. Sanders, P. and Tsimakhovich, P., 2014. The Idiosyncrasies of Luxury Consumption in Russia. Luxury Brands in Emerging Markets, p. 70. Shen, Y. C., Bei, L. T. and Chu, C. H., 2011. Consumer evaluations of brand extension: The roles of case‐based reminding on brand‐to‐brand similarity.Psychology & Marketing, 28(1), pp. 91-113. Souiden, N., M’Saad, B. and Pons, F., 2011. A cross-cultural analysis of consumers’ conspicuous consumption of branded fashion accessories. Journal of International Consumer Marketing, 23(5), pp. 329-343. Thakor, M. V. and Lavack, A. M., 2003. Effect of perceived brand origin associations on consumer perceptions of quality. Journal of Product & Brand Management, 12(6), pp. 394-407. Veg-Sala, N. and Roux, E., 2014. A semiotic analysis of the extendibility of luxury brands. Journal of Product & Brand Management, 23(2), pp. 103-113. Yu, C. C., Lin, P. J. and Chen, C. S., 2013. How brand image, country of origin, and self-congruity influence internet users' purchase intention. Social Behavior and Personality: an international journal, 41(4), pp. 599-611. Appendices Appendix 1 Ansoff matrix Figure 1: Ansoff Matrix showing brand management of Mont Blanc (Source: Author’s Creation) Mont Blanc is known for producing writing instruments as well as leather goods for its customers in the existing markets. It uses technological innovation in producing wide range of products for both male and female customers. However, it plans to expand its business to the other countries by producing leather furniture as well as clothing. The company plans to create brand awareness for its new products by organizing international events and promoting their products. Read More