Background and Current Marketing Strategies of the Fashion Brand Aquascutum - Term Paper Example

ANALYZING THE BACKGROUND AND CURRENT MARKETING STRATEGIES OF THE FASHION BRAND AQUASCUTUM Introduction Aquascutum is brand luxury clothing based on UK that is described to be one of the finest samples of UK fashion industry. The brand was established in 1851 by John Emary a noted tailor entrepreneur. He opened it at as a high quality menswear shop at 46 Regent Street. By 1853 he succeeded in producing the first waterproof wool, a discovery that he patented and retained as the shops name- ‘Aquascutum’, the Latin word that denotes, ‘water shield’. By 1901, Emary moved to 100 Regent Street located in the heart of London city, which till date remains as Aquascutum’s flagship store. In the beginning the company produced, Coats for officers in the Crimean War 1854 that was made of waterproof fabric. It was worn as trench coats by soldiers of all ranks in consecutive world wars. Then slowly from there the company produced, domestic and fashion apparels in the 19th century that was adorned and patronaged by a top A list of royal clients as His majesty and the entire British royal family. Till then Aquascutum gave only Men’s wear and by 1900 Aquascutum brought in women’s wear department that offered water-repellent capes and coats. This step was an instantaneous success and became extremely popular among the suffragettes. Starting with outerwear and riding habits, the brand soon offered a fully developed wardrobe for women that were truly stylish and fashionable. Aquascutum has a list of very proud elegant and powerful clients, from aristocracy and political leaders to film stars. But with the turn of century as the style and fashion trends took turn, the brand lacked the necessary foresight, and up gradation, and though it has a authentic value attached to it, the sales started dripping down. Then by April 2006, Kim Wisner became the President and Chief Executive Officer of Aquascutum with Michael Herz and Graeme Fidler, as heads of design .They as a team are trying to continue the brand’s heritage of fabric innovation with due reference to Aquascutum’s rich past to create potent collections of perfectly crafted pieces that would suit today’s style and fashion. The brand, famous for its suiting range, has recently roped in Pierce Bronson, for modeling. It has also started to offer tailoring by Savile Row tailor, Nick Hart. The Autumn/ Winter 07 campaign, their latest achievement that features power couple Gisele Bündchen and Jamie Dornan in Aquascutum Collection designs and Vintage pieces was a run away hit. The Aquascutum now balances the traditions of its powerful brand image , and also bending to the demands of a more international, luxury appeal, with the CEO bringing in total change that give it a new look with tradition withheld. The store is now reportedly picking up in sales under the able stewardship of Kim Wisner. The following report tries to analyses its marketing strategy and present status. (http://en.wikipedia.org/wiki/Aquascutum,2007 ). Mission: Aquascutum’s mission from the day of its conception was to provide stylish protection against the unpredictable British weather that they are following from the days they developed ‘trench’ coat to keep the soldiers warm and dry. Their trademark from then has become a mix of unique and revolutionary qualities that became synonymous with luxury, longevity and style. This has not much changed under the administration of new CEO who has described the mission as to refine and reenergize the brand and bring up Aquascutum’s to a unique position in the market place, trying to bring in true meaning of making the global fashion - global.(http://www.aquascutum.com/,2007) Companies’ situation Aquascutum had a brand value attached to it, even that couldn’t save the company from the loss of profits as the company didn’t update itself to the changing style statement. To put it in the words of its new CEO, “Aquascutum’s become sleepy, it's got no energy, the clothes needed an overhaul and there's an awful lot of product that also needs to be eliminated. There's really no marketing, there is no excitement about the brand". ( Elliot Choueka , 2006). The sales over years had dropped down. Currently the Sales are £220 million that is a lesser range of profit margin over years. The company has planned to invest around £40 million in turn expecting double the amount of sale by 2010. Aquascutum had pre-tax profits of GBP1.4 million for the year to December 31 2002, on comparison with GBP0.79m the previous year. The company generated sales of 220 million pound last year. It has more than 300 retail outlets with flag ship shop in London and Tokyo, with 200 additional shops in Japan, 30 in UK, 30 in South Korea. The Aquascutum is operating in 230 countries and has experienced steady export rise over 2000 to 2002. (http://www.aquascutum.com, 2003) Current strategy changes: Setting a target of achieving, a turnover of almost half a billion pounds within three years, the company plans to move with a aim of hanging onto existing customers while attracting new customers . The company has brought in three main changes, • Redesigning the companies flagship store in London • Creating a Brand new advertising campaign. • Brining in a new more suitable and stylish range.(Aquascutum,2007 , London Fashion Week) This was done over months starting with a major change in the managers, brining in new one. Aquascutum has relaunched its flagship store at 100 Regent Street, London. It has kept its fashion brand's status as a modern British classic and brought in more style and design. The men’s section and women’s floor had been completely revamped. Aquascutum had two distinct lines of clothes – one the catwalk collection and second the mainline. The catwalk collection included the clothes that received critical acclaim from the fashion press, and is deemed as expensive and exclusive, whereas the mainline is cheaper and unsuccessful. The company has increased the production of mainline clothes with catwalk style. As a next main step the company has roped in Pierce Brosnan as brand ambassador that had been received well. The company plans to turn is profit from £100 million to £250 million in three years. Aquascutum, that gave the world the first waterproof raincoat 150 years ago, is getting into a bold new marketing strategy that includes concept shops within existing retail accounts. Aquascutum had recently opened its first new store-in-store, in partnership with Patrick James, a privately owned group of 12 men's wear stores in Northern and Central California that carries in it brands as Gitman Brothers, Kenneth Gordon. (Elliot Choueka,2006) The Targeted Market segment: The UK’s fashion market has been rated as the fourth largest market in the world with around 2 billion dollars turning around. The main market segment for them is US, Japan and other European countries. In UK, London is considered to be the Fashion hub with many brands reigning as Aquascutum, Mark and Spencer Hugo Boss, Burberry, Paul Smith and Gieves and Hawkes etc totaling close to 1500 design agencies. And many surveys have already proven that cloth shopping is the favorite past time of UK and almost 34 billion dollars and 16.5 billion dollars are spend over women and men fashion wear respectively. A report taken in 2000 shows that UK consumers annually spend 34.15 bn pound on clothes. Earlier Aquascutum was concentrating in stylished presentation of rain wear, soft woolen. Then slowly it turned towards men’s design wear. Now Aquascutum is targeting the women folk- shown to be a big consumer group for designer clothes. Aquascutum has launched a new line for women - the business-wear range Women's Personal Tailoring that would be made from fine fabrics like cashmere, jersey-knit and wool. Thus it seems logical for them to flow from menswear, coats, trench coats and suits and in then women’s wear ,followed by women's coats and trench coats and now with the number of women in business growing by the year Aquascutum is trying to attract the businesswomen as it is synonymous with success and power, quality and luxury. (Patrick James, 2001). The MINTEL REPORT that is delivered through thorough market analysis, keeping in mind the complexities of consumer behavior is considered to give reliable data about the existing trend of any material. The scenario Mintel gave for 2005 , in the Cloth retailing report, has stated that the market trend has changed significantly, with trends favoring big retailers to grow still more big, and small retailers finding it difficult to survive. It has predicted that both 2006 and 2007 would be challenging owing to weather and economic status. According to the analysis by Mintel the forecast shows that the population below the age group of 25 is fast developing into potential buyers. They further add that currently the fashion wear for men is catching up and so similarly is the women fashion wears. They say that if the market becomes flooded with the particular brand, it loses name and if it becomes too reclusive then the diffusion reduces. The report about fashion garments in Mintel says that now 45+ are more interested into fashion wears. All this when applied to our Aquascutum, we could see that there is a potential raise in the buyer volume and demand might increase in future. (Mintel report,2006) The company that has its roots in UK is now targeting markets as China, Japan, US and Germany, there trying to be the best available brand. Competitor The main competitor for Aquascutum both on shore and offshore is Austin Reed and M&S, Hugo Boss, Burberry, Paul Smith and Gieves and Hawkes, with the Austin reed situated in the same street. Reports shows that, though the company shows revenue of £220m last year, it is still making loss. The main reasons cited being that, while the rival brands such as Burberry, Mulberry and Pringle have reinvented themselves and grown, e Aquascutum has stagnated. Of all, the main neck to neck competitor for them would be Burberry, with a 150-year-old legacy, specializing in the same "trench" coats. (Menkes, 2002). Basically it is a company with 260 stores and concessions selling men's and women's designer apparel and accessories worldwide .The Burberry has actually gained momentum by promptly undergoing a fashion renaissance as the time demanded, expanding fast into baby clothes, blue jeans, and personal products. By the year 1990, both Aquascutum and Burberry faced serious trouble with their profits dropping by 60% between and described by leading financial analysts as “an outdated business with a fashion cachet of almost zero”. The difference was immediately the Burberry networked the partners and co-operators and reorganized its business.( Burberry Group plc (2005) (Moore. and Birtwistle , 2004). A report by Newbery says that the traditional brand as Aquascutum and Pringles are falling down when compared to their state ten years back, while Burberry has recorded 22% growth in the opposite. (Leonie Barrie,2003) Marketing mix: Product: Aquascutum has grown from the stage of production of the revolutionary, shower-proof wool trench-coats have now moved towards establishing itself as a stylish international luxury brand for both men and women. The new designers Michael Herz (women swear; ex Guy Laroche) and Graeme Fidler (menswear; ex Polo Ralph Lauren) employed in Aquascutum are presenting their 6th catwalk collection at London Fashion Week. The design for this season is based on the theme ‘from the sun and the sky and warm days sitting in golden fields’. The dresses are sprinkled alive with Colors of parade of cool blues and a rainbow of hot shades. Hand-painted prints and rich embroideries decorate chiffon and liquid jersey dresses. The trench-coat Aquascutum’s trademark garment is continually re-invented within the collections with added details as belt. Aquascutum as a part of their drive for global reach are launching a Vintage Collection of 5 Silver Screen-inspired coats for women in store in September with men’s versions to follow next year. They are also introducing a new collection of shoes and accessories. The company as it did for men folk has now introduced, tailoring service for women also, where women clients could have their coats, suits, jackets and trousers from more than 200 different fabrics. Thus in nutshell, the designers, while remaining true to the company's ethos, has tried to work on the he quality and style of the current collection is a commitment to superior craftsmanship. (Guy Dixon, 2006) Promotion The company as its CEO expressed is now working hard on its earlier weak point, the promotion. The Aquascutum as a new energy is trying to promote its brand through brand ambassadorship, advertisement etc. The fashion brand Aquascutum has successfully roped in former James Bond, Pierce Bronson, to be the new face of the company. The veteran Bond is all set for the new global ad campaign for the company that is overhauling itself to rebrand with a view to focus on its British roots. The company has estimated to spend £40 million for its rebranding project In the upcoming ad campaign, that is likely to hit the stand near future, Bronson appears with the model Julie Stegner in the ad campaign that is slated to appear in lifestyle and fashion magazines and journals in the U.K., Italy and the Far East. (Susie Rushton, 2007) Aquascutum is to feature models Gisele Bündchen and Jamie Dornan for its latest global ad campaign, which was shot at one of Britain's most beautiful stately homes. Also Aquascutum is to spend £40 million on a pre Christmas marketing campaign which Kate Winslet, Daniel Craig and Jude Law are currently in the running to front. The campaign is designed to make the 155 year old brand the new must have label following the footsteps of other revamped historic brands such as Burberry and Mulberry to give global appeal. (Breward, 2003). As a part of its promotion strategy the Aquascutum Corporate Gifts had launched a website of 3 D shop feeling, which is anticipated to bring in at least, 20% rise in sales. This was launched to cover customers and promote sale even among them who are unable to visit the shop- targeting money rich and time poorer people. Thus this aspect is created to capitalize on the on the customers’ convenience, meet wider audience and cater for their research appetite. Place: Apart from London, Aquascutum as a part of its international expansion strategy is to open a flagship store in New York by 2008. The group currently has approximately 300 stores in the UK, Japan, Hong Kong , China and South Korea . The group expects to double sales to around £440 million by 2010. In future the fashion brand is intended to open stores in Paris and Moscow, and even in the Middle East. Also it is planning to step up its presence in the German market. The company has recently made a successful ad campaign for its brand launch in China- Shangai with Pierce Brosnan. It has more than 300 retail outlets with flag ship shop in London and Tokyo, with 200 additional shops in Japan, 30 in UK, 30 in South Korea. The company is looking in for further expansion in US, Italy and France. (Agins, 1999) (Holt etal.,2004) Price: Over the price the company has tried to bring in the catwalk collections in mainline clothes thus making the styles available in lesser, affordable price. They are also offering ladies tailored suite starting from 700 pounds. (http://www.aquascutum.co.uk/, 2007) The Current Scenario The effect of Kim Wisner as the current CEO of the Aquascutum is highly effective, with she being the main reckoning force of the fight back of the brand Aquascutum. She was as a female director of Marks & Spencer where she ran the women’s wear division before joining Pringles. . Under her direction, the women’s’ business grew substantially in sales, market share and profit. Then she joined Pringles of Scotland and made the brand globally acknowledged one. Kim Winser is listed number three in the Wall Street Journal Europe’s most successful businesswomen and as one of Business Week’s most innovative businesswomen in Britain. She has now taken up the challenging job of brining back Aquascutum in the spotlight. Under her guidance, the company has undergone a major change with staff and directors being hired and fired, a major advertising campaign launched, new goods appearing on the shelves and stores given a much-needed makeover. As her assessments that lead her to formulate the strategy, she says that "Aquascutum has strong infrastructure - it has a strong retail positioning with nearly 300 stores. The weakness is that we haven't been focused on brand, product and marketing”. Its latest strong hold has been its advertising campaign fronted by former James Bond actor Pierce Brosnan and model Julia Stegne, which’s effect is seen in London and Tokyo that is already paying off, with a 47% year-on-year increase in footfall and 32% uplift in sales in these two stores in the last nine weeks. As a next step the company is planning to open accessory business and expand in America. Thus Aquascutum’s brand equity value that has existed for past 150 years had paid off well with its advertisement campaign. As acclaimed by its CEO the company which had a high brand value, lost its gleam over years due to the changing trends and style statement for which the company was unable to rise to. The company lagged in marketing and promotion. But now with the new changes in styles and trends, more fashion shows to sensitize matters, new advertisements, new offer launched for women customers, thus when compared over last ten years its market share, selling price Vs number of shares has been increased. The decreasing passion for fashion trend thus had a serious toll on Aquascutum from which it recovers now by introducing clothes of need with style and value of ethnicity of Aquascutum.(www.aquascutum.com, 2004) References: 1. http://en.wikipedia.org/wiki/Aquascutum,2007 2. http://www.aquascutum.com/,2007. 3. (http://www.aquascutum.com, 2003) 4. Aquascutum, 2007 London Fashion Week , http://www.londonfashionweek.co.uk/designers_details.asp?DesignerID=26. 5. Elliot Choueka ,2006 , Transforming Aquascutum, BBC Money Programme. 6. Saeks, Diane Dorrans, 2001, AQUASCUTUM LAUNCHES FIRST CONCEPT SHOP IN U.S. VENERABLE BRITISH LABEL FINDS A NEW HOME WITHIN SAN FRANCISCO'S PATRICK JAMES, Daily News Record. 7. Burberry Group plc (2005). Annual Report and Accounts 2004/05. London. 8.). "The Burberry business model: creating an international Moore, C. and G. Birtwistle (2004luxury fashion brand." International journal of retail and distribution management 32(8): 412-422. 9. Menkes, S, 2002. "Bravo! Reburnished Burberry sets the pace". International Herald Tribune. 10. GUY DIXON ,2006 , Living the life of luxury, Scotland On Sunday, Nov 2006, http://scotlandonsunday.scotsman.com/ViewArticle.aspx?articleid=2828331. 11. Susie Rushton , 2006, "Orient excess". Independent, The (London). Mar 26, 2007. FindArticles.com. 08 Jan. 2008. http://findarticles.com/p/articles/mi 12. Breward, C. (2003). Fashion. Oxford, Oxford University Press. 13. Agins, T. (1999). The End of Fashion; How Marketing Changed the Clothing Business Forever,. New York, HarperCollins Publishers Inc. 14. http://www.aquascutum.co.uk/, 2007 15. www. mintel.com, 2006 16. Fournier, S. (1998). "Consumers and their brands: Developing relationship theory in consumer research." Journal of Consumer Research 24(4): 343-373. 17.Holt, D. B., J. A. Quelch and E. L. Taylor (2004). "How global brands compete." HarvardBusiness Review 82(9): 68-74. 18. Leonie Barrie, Diffuse fashion lines give boost to UK clothing sales, http://garments.tdctrade.com/content.aspx?data=garments_content_en&contentid=176862&src=IN_Int&w_sid=194&w_pid=681&w_nid=10373&w_cid=176862&w_idt=1900-01-01&w_oid=207&w_jid= Read More