Professor Elena Cedrola elena cedrolaunimc it http docenti

Professor Elena Cedrola elena. cedrola@unimc. it http: //docenti. unimc. it/docenti/elena-cedrola 5 – BRANDING AND COMMUNICATION INTERNATIONAL MARKETING (B - INTERNATIONAL FASHION MARKETING) 2018 -2019 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 1

Branding as a core asset in fashion The brand is an essential part of the buying process. It is a sum of tangible and non-tangible elements that allow consumers to quickly learn about the intrinsic characteristics of a product and the quality of the producer. The brand communicates the non-tangible attributes and stylistic codes of an offer, using a set of symbols, to provoke certain emotions. Positive aspects of Brands • Enables Firms to be more efficient in their marketing strategy in the long term • Give the opportunity for the company to implement brand extensions • Allows the customer to improve their purchasing experience and their purchase decision How brand equity generates value for a Company? (Aaker, 1992) • Brand Awareness • Brand Associations • Perceived quality • Brand Loyalty 07/10/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 2

Fashion brands classification 07/10/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 3

GRIFFE (designer brand) All the products are made by hand in an atelier, are unique and eternal. E. g : Yves Saint Laurent LUXURY BRANDS: designer brands or craftsmanship – Excellent quality, – High price – Scarcity and uniqueness, – Aesthetics and poly-sensuality, – Ancestral heritage and personal history: Craftmanship that derives from the countrie’s cultural heritage + geographical roots linked to the history of the brand. − Superflousness : Luxury brands linked to high success and Privileged Social Status 07/10/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 4

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PREMIUM BRANDS: also called «new luxury or new luxe» 3 sub-categories Super-premium: rice similar to brands at the top of the range – for consumers belonging to high standard classes who can not afford luxury brands Old Luxury Brand extensions: extensions of luxury brands with more affordable products Masstige: prices much lower than 2 first sub-categories, but still higher than mass products, also in term of quality. – Need to create a prestigious environment to allow the success of a premium brand – Access to brands within prestigious stores or department-stores – Presence in Fashion shows, glamorous magazines… – Involvement of well-known designers – Limited access to the brand for middle-class consumers 07/10/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 6

MASS-MARKET BRANDS – For a largest amount of people – Simplification of the production process – Insipiration from high-quality brands e. g : mass-retailers : Tesco, Wal-Mart… RETAIL BRANDS, PRIVATE LABELS AND STORE BRANDS q Retail Brands -> Retailers that sells the products under their stores names only in their retail outlets e. g: Club Room or INC q Private Labels -> Retailers that markets their private brands in their own stores e. g: H&M, Top Shop, Oviesse q National label Brands -> Manufacturer brands which sell their products in national stores chains e. g : Ralph Lauren, Guess 07/10/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 7

PRIVATE LABELS OVIESSE 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 8

Brand extention Brand extension: decision by which a company uses an existing and wellestablished brand (“the parent brand”) for a new product class 2 types of brand extansions: – Horizontal : product which has a similar price level and quality level than the parent brand = same positionning – Vertical : products that do not have the same quality and price as the parent brand - possibility of extending the product – Upward : higher prices and quality for a more affluent target – Downward: offering products at a lower price and quality - more common in the Fashion Industry. e. g: The brand Ralph Lauren which has 16 different levels of brands 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 9

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Brand extention Brand extension: decision by which a company uses an existing and wellestablished brand (“the parent brand”) for a new product class 2 types of brand extansions: – Horizontal : product which has a similar price level and quality level than the parent brand = same positionning – Vertical : products that do not have the same quality and price as the parent brand - possibility of extending the product – Upward : higher prices and quality for a more affluent target – Downward: offering products at a lower price and quality - more common in the Fashion Industry. e. g: The brand Ralph Lauren which has 16 different levels of brands Advantages of implementing a Brand Extension: – The company will not pay the costs associated with the development of a new brand – Expands the target – Enhances brand image and increase market coverages There also several risks: – Risk of confusing the consumers – Or diluting the parent brand image (=degradation of the brand image) 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 11

Armani 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 12

Brand portfolio Companies sometimes have multiple brands to meet a larger demand Brand portofolio: «all the brand their extensions, offered by a given company in a given product category» 2 forms of Brand Artchitecture : Branded House : When the company has sub-brands connected to one main brand. e. g Armani • This approch ask a larger Investment • RISK: If a brand collapses, it will affect the other brands. House of brands: Brands are independent, unconnected. • • • Consumers usually do not know the company the brand belongs to Implementation of an independent brand image e. g: LVMH – French Luxury : more than 50 luxury brands in various sectors Prevents a brand from being impacted by another brand of the Portofolio 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 13

BRAND PORTFOLIO 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 14

Harmont & Blaine • Read the case and analyze the brand strategy • Sum it up • Make your considerations on strenght, weaknesses • Suggestions for managers? 10/7/2020 PROF. ELENA CEDROLA – INTERNATIONAL FASHION MARKETING 15