Business Valuation of Polo Prada and Puma - Case Study Example

Marketing Analysis: Polo, Prada and Puma Name Instructor’s Name Institution Name Course Name and Code Date Introduction For a fashion and garment company to succeed, it is important to consider segmentation, targeting and positioning in formulating and implementing strategies. This section discusses segmentation, targeting and positioning relative to fashion and garment industry for men. Segmentation – Men fashion and garment industry consist of consumers, and the consumers differ in numerous ways. The consumers may differ in their buying practices, buying attitudes, locations, resources and wants (Dahlen, Lange and Smith, 2010). The purpose of market segmentation in such scenario is to divide large heterogeneous markets into manageable segments can be reached and engaged easily. Therefore, segmentation is the division of a larger target market into smaller consumer markets with similar priorities and needs and strategies formulated and implemented based on the information from these smaller segments to fulfill the objectives and goals of the entire organization (Dahlen, Lange and Smith, 2010). For example, fashion and garment industry produces different clothes for men based on factors such as colors, taste, use and perceptions. Therefore, a market should first understand the market and produce products that suit the requirements of that market. Targeting – target market is a group of individuals who are differentiated based on noticeable and distinguishable aspects. For example, the fashion and garment industry, some companies such as Puma produces cloths and shoes that are targeted to sport personalities (Dahlen, Lange and Smith, 2010). Therefore, the most important target markets for Puma are athletes; sports persons. The aim of targeting is to ensure the appropriate consumers are accessed and engaged into purchasing the products. Positioning – Market positioning is influencing consumer perception of product or brand relative to other products that are available in the market (Dahlen, Lange and Smith, 2010). For example, numerous companies produce sports clothing such as Nike and Puma. Puma should position its products in a manner that more consumers would buy Puma products rather than Nike. Other factors that are important include easiness of accessing the product and how consumers perceive the products. Segmentation Polo – Polo brand employ segmentation in different perspectives. The brand employs age, gender, and other characteristics on customers. For example, Polo brand services consumers between the ages of 10 and 65. Some of the characterization that Polo brand employ include sports, leisure and disposal income of the customers (Lauren, Chaney and Moore, 2005). Moreover, Polo specializes on geographical region to determine what products to supply and the quantity of the products. It is attributed to the fact that some geographic regions have more disposal income compared to other regions. For example, there more stores in United States of America compared to Africa because USA have more disposal income and are after prestige compared to Africa. Prada – Prada segments it market into three important categories, which are demographic, psychographic and behavioral segments (Prada Milano 2012). Demographic is based on income since most of the Prada brands are of high value and mostly comes in terms of premium. Therefore, higher income earners are the most important segment. In addition, psychographic brings into consideration social class and lifestyle (Prada Milano 2012). Consumers who feel they are at a certain social class and lifestyle tends to choose brands and apparels that fulfill their personal requirements. Moreover, behavioral segment is commonly associated with occasions, benefits, loyalty and attitude towards product. The high quality nature of Prada products results in consumers liking the products and drives sales. Puma – the segments of Puma are based on psychographic and behavioral. Most of the people who use the Puma products are sports persons and require appropriate and reliable products that fulfill their requirements (Puma 2013). In addition, to the two segments, the Puma brand aims to bring into consideration consumers of ages 15 and 35 years. These are the active persons and commonly associated with demanding sports such as running and football. In the case of behavioral, Puma continues to innovate and carries out frequent research with the help of technologies to ensure consumer receives products outside the box (not comparable to others), which are unique and practical; therefore, the segmentation is based on attitudes and perceptions (Puma 2013). Targeting Polo – Polo brand targets different consumers based on their characteristics and segments. Polo brand targets professionals, leisure and wealth persons and those people involved with sports University of Oregon 2009. The Polo brand targets customers between 10 and 65 years; the Polo brand targets consumers as they grown and associate their brands to the likes and expectations of consumers. For example, Polo brand reaches the kids and follows the kids as they turn to adolescences and to professional requirements even towards senior citizens. Prada – Prada brand target those consumers who are affluent and they are ready to spend (Prada Milano 2012). It targets those consumers who want prestige and appreciates changes in seasonality and practicability of the clothing. It is attributed to the numerous brand products that fulfill the requirements of different conditions and applicable. In addition, Prada brand targets those consumers who are after quality and upper social class. Therefore, targeting is important to Prada brand at mostly targets affluent consumers and those who are after prestige groupings (Prada Milano 2012). Puma – Puma target consumers who appreciate originality and those consumers who are creative, bold, individualistic, eccentric, and active. Puma understands the different requirements of consumers from runners to footballers and aims to produce products and services, which fulfills these different requirements (Puma 2013). Positioning Polo – Polo brand is aimed at high class and is commonly shown in a high class country club. In addition to the classic looks, the sex appeal of the clothes, contrasting colors and styles, and how these different features blends makes the products to be appreciated (University of Oregon 2009). For instance, the color scheme makes it unique when compared to other products at the market. The Polo brand is priced at the premium level whereby ready-to-wear apparel is marketed. In other positioning strategy, the Polo brand sells the Blue Label, which is focused on women. Moreover, the Polo brand offers the Polo Golf that is aimed at resort and golf markets. The clothes are available at Ralph Lauren brand stores, specialty stores, department stores, pro resorts and shops, and leading golf clubs. Prada – The Prada brand positioning strategy is premised on innovation, intellectual approach and cultural creativeness. The brand factors into consideration functional travel requirements that are based on high quality. The products and services produced are of classing and elegant in nature, and all these products and services are on modern innovation (Prada Milano 2012). Therefore, the Prada brand is based on brand function e.g. self expression, descriptive e.g. elegant and contemporary classic and emotional e.g. sexual and stylish. Therefore, the Prada brand exhibits social rank, prestige, chic and elegance; consumers purchase Prada when season changes and when new fashion trends exists; expectations of consumers who purchase Prada include luxury, class and wealth, and high quality (Prada Milano 2012). The Prada products are available in numerous outlets and online stores across the world and their flagship stores are available in Tokyo, Beverly Hills, New York while the headquarters of Prada is in Milan (Prada Milano 2012). Puma – Puma positions itself as a ‘cool’ product and targets different types of consumers. The company employs different strategies to highlight the important of ‘coolness’ and consumers can be associated with the Puma brand products (MacLeod 2005). The company decided in 2003/2004 to enter into a contract with Regency whereby Regency was to market the Puma brand in the movies and any media production creating more publicity; some of the movies included Friends, Will and Grace, JFK and Pretty Woman. The Hollywood connection continued to improve when Madonna and Gwyneth Paltrow were seen wearing the brand. In addition, Puma brand entered into contracts with numerous athletes including Serena Williams (tennis player), Bolt (runner) and Nicholas Anelka (football player). In addition, the Puma brand has participated and sponsored numerous games that include 2012 Summer Olympics, Volvo Ocean Race and Football Euro Cup in 2012 (Puma 2014). Therefore, Puma brand employs different positioning strategy to attract consumers effecting sales. Conclusion Fashion and garment industry is very competitive and every company within the industry employs different strategies to become successful in the market. Marketing mix is an example of strategy and tool that is employed by numerous companies within the fashion and garment industry. Segmentation, targeting and positioning comes handy when formulating and implementing strategies since these are aimed at understanding the requirements of consumers and effecting sales. The three companies, Puma, Prada and Polo, understand the requirements of engaging the consumers and effecting sales. The three companies have efficiently and effectively utilized the segmentation, targeting and positioning to engage the consumers and effect sale. Even though they are employing different approaches to fulfill the requirements of segmentation, targeting and positioning, the three companies business are viable based on the market presence/share and financial statements. References Dahlen, M, Lange, F, and Smith, T 2010, Marketing Communications: A Brand Narrative Approach, New York, John Wiley & Sons Lauren, R, Chaney, G and Moore, M 2005, Business Valuation of Polo Ralph Lauren Corporation, Retrieved on 16th August 2014 from http://mmoore.ba.ttu.edu/ValuationReports/PoloRalphLauren.pdf MacLeod, A 2005, Puma AG: MarketBuster, Retrieved on 16th August 2014 from http://www.marketbusting.com/casestudies/Puma.pdf Prada Milano 2012, Annual Report 2012, Retrieved on 16th August 2014 from http://www.pradagroup.com/documents/announcement/E-Annual-Report-2012.pdf Puma 2013, Annual Report: 2013, Retrieved on 16th August 2014 from http://www.puma-annual-report.com/GB/2013/pages/en/pdf/PUMAGeschaeftsbericht2013_en.pdf Puma, 2014, Puma’s Brand Strategy, Retrieved on 16th August 2014 from http://about.puma.com/wp-content/themes/aboutPUMA_theme/media/pdf/2013/PUMABrandStrategy.pdf University of Oregon 2009, Investment Group: Polo Ralph Lauren Corporation, Retrieved on 16th August 2014 from http://uoinvestmentgroup.org/wp-content/uploads/2009/08/Ralph-Lauren.pdf Read More