This document analyzes and compares three popular luxury brands: Emporio Armani, Louis Vuitton, and Calvin Klein. It discusses the reasons for their success, including their innovative marketing strategies, creative elements, and management approaches. Some common factors that have helped build their brands include effective advertising campaigns featuring celebrities and the strategic use of new technologies. The document also provides financial data and performs SWOT analyses for each brand.
2. Introduction
Brand Management is the strategy which involves the processes which involves the
analysis and planning of the ways in which a brand can be perceived in the market.
It is a process which involves the development of an efficient relationship with the
target market.
A number of tangible elements helps in the escalation of a brand such as the
innovative and creative elements in the brand, the marketing strategy, proper
handling and management of the product.
In the presentation, Emporio Armani, Louis Vuitton and Calvin Klien. Which are the
three most popular brands in the world are analyzed, the reasons behind the success
of these three leading brands are studied, the innovative and creative elements of
these brands are studied upon, the differences in their management style will be
discussed and the marketing strategies of the brands will be studied along with the
analysis of the common factors involved in the analysis of the brands.
3. Reasons behind the Success of
EMPORIO ARMANI
EMPORIO ARMANI has an overall revenue of over $1.5 per annum was initiated by
Armani, president and CEO thirty years ago. But, how did a very small company
started by a poor boy led to the successful fashion companies in the world? The
following factors will illustrate the reason behind the success of Armani.
Philosophy: Armani, over the last thirty years has continued to stay classic and
current which are the prerequisites for the success of a fashion company. He has
been consistent for the last 30 years which has made him different. It has been his
consistency which been the reason behind the success of Armani.
4. Marketing : Armani initiated the trend of celebrity marketing. The located their
press in Hollywood so as to have easy access to the best and the hottest starts of
the industry. From popular actors to reputed athletes, Armani used each and
every opportunity to build up his brand. This boosted the reputation of his
clothing and it became luxurious and elite fashion.
Branding: Armani provide varied options which can solve each of your problems
related to fashion. If you look for a great outfit for night out, Armani is the stop for
you. If you wish to wear a simple, elegant dress, Armani has options for you while
if you want to wear an appealing swim wear at a beach. Armani has the best
options. So they fulfilled each and every option of the customers.
Control: Armani has single handedly managed the entire control of the company
in a successful manner. He does the things in his way. He says that it is hard for
him to follow someone else’s way.
Responsibility : Armani as a company has always been responsible for the
environment creating environment friendly materials and supporting a number of
issues.
6. Reasons behind the Success of
Louis Vuitton
Louis Vuitton is a luxury brand and has been immensely successful in the recent years. It
has been due to the proper execution of the marketing principles in terms of
production, distribution, promotion and price. Let us study the reasons for the success of
Louis Vuitton:
Marketing Principles: Louis Vuitton has implemented a strategy and marketing
principles which are different from other brand.
Launched during the time of change: Louis Vuitton rose in the markets during 1970’s.
when there was an enhancement in the passion of Japanese people towards luxury
brands. Vuitton also focused on luxury segment, hence was immensely accepted by
the people.
Great Designs: Louis Vuitton are known for their designs, which are not only popular,
but has been appreciated at a number of fashion shows.
Individuality Factor: Louis Vuitton Brand is known for its individuality. Though, other
brands believed in discounts, Louis Vuitton always believed on quality and sold its
products only on the branded stores.
8. Reasons behind the Success of
CALVIN KLEIN
Calvin Klein, is known for its classical fashion and has become an international celebrity
design company. Started in the year 1960 with women’s clothing, Klien build an empire in a
short time. Here are the reasons for its success:
Consistency: Calvin Klien has continued to be a successful fashion brand which is known for
its simplicity, loved for its elegance and admired for its iconic style. Continuous
maintenance of this image of accessible luxury has led it to success.
Uniqueness in Designs: Calvin Klein is known for its unique designs in all forms of fashion
involving clothing, fragrances, jewelry and accessories.
Provocative Advertisements: The design of provocative advertisements led to the
continuous attention of the people. They were the first brands to push the boundaries of
sex in the advertisements. It was known for its sexy and controversial advertisements.
Models and Celebrities: Calvin Klien has been the favorite brand amongst the celebrities.
The company has ensured that they have right models for the ads involving the famous
celebrities such as Brooke Shield, Kate Moss, Mark Walberg, Eva Mendes.
10. Innovative and Creative Elements
of Georgio Armani
Armani has been successful for a number of innovations and creative
elements:
It was the very first brand to ban the models having the BMI under
18 due to the death of Anorexia Nervosa, a model who died due to
starvation.
Armani was the very first company to broadcast its collections live
on the internet.
Armani further entered into mobile market by designing the Giorgio
Armani Phone.
Armani has designed innovative outfits which gain popularity.
Armani has designed a number of high profile award shows.
11. Armani has brought in Models such as Daria Werbowy for the shoots
which is known for her nude shots. This has attracted a number of
people all round the world.
Armani has created a number of romantic and classical designs
and advertisements.
The designs of Armani are eternal. Armani has been dedicated to
excellence and continuous innovation without any boundary
between men and women and led to the stage where no gap
exists between men and women.
13. Innovative and Creative Elements
by Louis Vuitton
Louis Vuitton has a long tradition of innovation and creations and is
associated with a brand image of luxury. Here are some of the
innovative and creative elements of the company:
The first company to create a digital publishing sphere. The
publishing strategy included extended digital publishing which can
be available through applications.
Another innovation introduced ready to wear clothes for kids, shoes
for kids, school bags and briefcases and leather covers for the kindle
e books.
Launched limited edition designs.
They developed the cooperation with Amazon.
14.
15. Performance Chart of Louis Vuitton
Performance During Recession Comparison of sales of Louis Vuitton, French CAC40
and FTSE Europe
16. Innovations and Creations by Kelvin
Clien
Calvin Klien has become a successful brand name in the present times,
due to innovation. From the designs to the promotional techniques
each and every thing by Kelvin represents originality and creativity.
Here are some of the innovative strategies by Kelvin Clien:
Email Strategy: Thid included the strategy to launch the campaigns
related to new brands through E Mails. The E Mail campaigns did not
only lasted long, but they added thousands of followers, enhancing its
success.
Innovative Marketing and Advertising campaigns through the use of
social media platforms was an innovative marketing strategy.
Harness the use of technology for creating designs and the promotions.
17. Differences to handle a Luxury Brands
Luxury Brand Management is a very tedious and a complicated task. This is because it is
easier to create a brand but the difficult thing is to manage its brand name. A very small
thing may turn down the entire reputation, something which can be gained again. Thus, the
management of the luxury brands is a completely different process involving a number of
complexities. In order to have a successful handling of a luxury brand, the following things
needed to be implemented:
Exceptionally creative thinking capability, innovative ability and out of the box thought
process are highly required for the management of a luxury brand. The luxury brand,
can't continue to ponder on the same style and traditional processes.
Luxury Brands needs to have a proficient PR and web management teams and they must
be adaptable to each and every web solutions. A normal organization can be sustained
with only an android app, but, a luxury brand needs to model itself with all the latest
technologies such as Ios, Blackberry, android, windows etc. Example of the same is
branding strategy of Calvin Klien.
18. Luxury brand needs to have a different kind of brand building methods.
This is because they have a classy customers and clients who reflect the
fashions of the entire world. For example, the fashion clothes and
accessories of Armani. A number of special events, fashion shows and
others are required to be conducted by these brands so as to make the
people connected to the brands.
Continuous development and maintenance of friendly relations with the
clients is a must. If the luxury brands does not have a cordial relations
with the clients, it may hurt their reputation.
The overall process of promotion for the products of luxury brands has to
be done in a different manner. An example of the same includes the
selection of exclusive magazines for advertisement and involving the
celebrities for the same.
Luxury Branding is different as it needs to have a mix of artistic creations
and technical knowledge.
19. Specificities of a Luxury Brand
A luxury brand would reflect differences in level.
It is much more selective in distribution. This is because luxury brand items are
not made to be sold anywhere but they have limited stores.
It is much more image driven.
It is extremely specific in its product quality.
It will provide best services for the market.
Another important specificity, is that it would be costlier. A luxury brand can
never be cheap and is specifically made for the rich class of people.
Considering to the brand value and the quality, high costs are acceptable. For
example: The price of Louis Vuitton handbag is between $600 to $2000 which is
much higher than the market price.
Luxury Brand Management involves the management of the allocation of
resources in an specific manner.
Luxury items may also be characterized by scarcity. This is because these items
are not produced in masses.
20. Marketing Strategy for Georgio
Armani
Armani group is one of the leading fashion brands. The primary
strength is the ability to create a diverse market in product lines,
designs and the overall business.
The marketing strategy for Armani is dedicated to the good class of
people and includes classy designs which replicates energy and
modernity.
The brands of Armani are defined by their elegance, style and
luxury.
Armani sells its clothes in the same locations where it has its own
stores.
It has a total of 92 stores which are located in 23 different nations.
Armani's accessories can be found in luxury stores of the world.
22. SWOT Analysis of Georgio Armani
Strength: Diversification in the market from the product lines to the
designs leading to the development of the new businesses.
Weakness: Armani has only one weakness that it does not has any
successor after the death of its CEO and Founder Giorgio Armani.
He is the only shareholder of the company and following him, the
company may be vulnerable.
Threats: Some of the famous brands such as Gucci may be a threat
to Armani as they are a potential competitor.
Opportunity: In the present time, fashion is gaining a higher
prevalence than the previous times. Therefore, it provides great
opportunities to Armani group.
23. Marketing Strategy of Louis Vuitton
Louis Vuitton is established as one of the most successful brands in fashion industry.
The marketing strategy of Louis Vuitton can be explained with the help of the
following marketing mix:
Product: Louis Vuitton has successfully established its unique identity where it is
known as a luxury brand. It is known for its adequate product quality. For example,
the customers says that the handbags of Louis Vuitton are quite easier to carry. It
has established itself as a unique brand.
Price: It is the part of marketing strategy of Louis Vuitton to select the price in terms
of value. Louis Vuitton selects the price in terms of value and marks its products at a
very high level. By implementing high prices, the customers feels that they are the
users of a great brand and feel proud to carry a Louis Vuitton tag with them.
24. Place: Louis Vuitton has a very selective marketing strategy. It has a
very limited shops for the product distribution. The products of Louis
Vuitton are specially sold at its dedicated stores. This further helps to
enhance its value.
Promotion: The promotion strategies involves advertisements, fashion
shows and by the use of internet and social media.
27. Marketing Strategy of Calvin Klien
To create powerful iconic brands by efficient marketing.
To maximize the marketing potential of the company and to be
within the reach of the customers.
Excellent product design, proper brand management, sourcing and
providing of the required logistics along with continuous expansion
are the parts of marketing strategy of Calvin Klein.
To have a proper Brand Positioning and concentration on the
uniqueness of the brand.
The focus of the marketing strategy is to build consumer support.
28. SWOT Analysis of Calvin Klien
Strengths: Calvin Klien is a strong brand which is popular worldwide
for its high quality products for men and women. Also, it has a global
distribution network for good distribution of the products.
Weakness: One of the possible weakness of Calvin Klein is the
expensive product range which is limited to a smaller section. But,
this is not a weakness as the company has limited itself to limited
target audience.
Opportunities: Rapid development and economic integration has
led to enhancement of its market. In addition to this, the growth of
the population provides higher opportunities to them
Threat: The possible threats may include the high rate of inflation.
29. Role of Creative Industries in
Marketing
Marketing and creativity is an interrelated process. A successful marketing
requires creativity and without marketing creativity is of no use. Similarly,
Creativity in the present world is of no use unless it gets the support of efficient
marketing. In order to ensure the continuous running of the businesses and
management of the brand it is important that there should be creative
elements in marketing. At each and every instance of marketing, creativity
plays an important role.
For example, the creative and innovative advertisements on social
networking websites. The promotion and marketing by using provocative ads
during the 1980's were the strategy was a creative and unique thing which
was then not implemented by the companies.
30. Each and every true brand in the market, incorporates the characteristics of
uncertainty and complexity within them and deem for innovation. Thus the
goals of the brands is to cultivate and promote creativity and to implement
the same into the process of buying, selling and using the value.
The success of Armani clearly illustrates the fact. Broadcasting the
collections live on the internet for the very first time was a creative decision
tried for the very first time by any brand. It was due to creativity that Armani
was successful in making a new phenomenon of marketing. Something
which was going to be used by all small and large organizations for years to
come. Thus, it is creativity which gives wings to marketing and inculcate the
elements of color and success into a brand.
In order to ensure that the creative companies and marketing companies
works with each other in order to manage brands. The creative industry
needs to come up with new ideas which can be implemented in the
market. Anything which is new is loved by the people, only if it appears
amongst the people. The creative and the marketing teams needed to
inculcate proper strategies.
31. Examples how creative industry and marketing
industry can work together for brand
The marketing team of Louis Vuitton decided to open dedicated
stores for the sale of its branded products. In such a case, it is the
responsibility of the creative team to decide, how to make the
stores appealing, how can the customers have a comfortable stay
at the stores and how can they lead to a successful store.
The marketing company has decided to involve actors for the
advertisement. But, the advertisement can be a success only if it has
something innovative, something unseen and something which has
not been witnessed previously.
32. Common Factors for Building a
Brand
Advertisement: All the three brands gave importance to advertisement. More
and more innovative advertisements were designed by all the three brands.
The involvement of the celebrities were an important step taken by all these
brands.
Use of Technology: In the present world, social media and internet has
revolutionized the world. This was understood by all the brands. All these
brands, used social media, internet effectively in order to build there brand
names.
Innovative Strategies : As it is said that innovation and creativity builds a brand.
Armani, Kalvin and Louis Vouttin, all the brands have largely focused on
innovations.
33. Common Factors for Building a
Brand
Limited Distribution: The limited distribution of the products adds value to the
brand. All the three brands have focused on limited distribution in selective
stores so as to build value.
Value: The three brands have consistently given importance to value. They
have been involved in providing excellent quality products winning the trust
of the customers.
Customer Engagement: All the brands have been in constant connection
with the customers. They have been trying new ways to connect to the
customers have invited their feeds and suggestions.
Distinctiveness: Each of these brands have tried to do something different
which was never done. The innovative advertisements involving celebrities by
Armani, the digital marketing strategy by Louis Vouttin and the provocative
advertisements by Kalvin Clien, all involve something that was distinctive.
35. ADIDAS: A Successful Fashion Brand in
world but struggling in U.K.
One of the most popular brand in the world which has gained
immense popularity in the sector of sports fashion is Adidas. It is a
multinational clothing brand founded in Germany. It was founded in
the beginning of the 19th century. By 1949, Adidas consisted of a small
team of 47 employees. The success of the brand enhanced with the
German National Team who wore Adidas shoes, won the World cup in
1954. Slowly the brand won the trust of the Athletes, football players,
cricketers and the sportsperson all over the world. In the mid 1960s,
Adidas started to manufacture apparels and clothes. At present,
Adidas is known for its innovative fashion accessories. They shoes and
clothing, ensure elegance and comfort and has a class which is loved
by people all over the world.
37. Relative Branding Issues Faced by
Adidas
Competition: Adidas has to face stiff competition from the brands such as Nike
and Reebok and there were certain times when Nike was successful in out
casting Adidas in some countries.
Decrease in Revenue: In the year 2013, Adidas faced a decrease of 2 % in the
revenues which was 3.75 billion euros. In the year 2014, Adidas had less revenue
which was 1/5th of the expected.
Decrease in the investors trust: One of the major part for the organizational
success is the investors. In the recent years, the global problem of Adidas led to
decrease in the trust of the investors. In August 2001, the stock price of Adidas
fell to 55.5 euros per share.
38. Relative Branding Issues Faced by
Adidas
Soft Trading Challenges in Europe: In Europe the sales declined by 9
% in the year 2015. A major challenge was faced by Adidas due to
currency headwinds. They had to face difficult trading conditions.
Distribution Related Challenges: Adidas is the world leader in
sporting goods and it produces the products in over 70 countries.
The company is working in multi layers with the supply chain and
have effective supply chain managers, still it faces severe issues in
the distribution. It becomes difficult for the company to have
effective distribution of the products.
39. Best Ways to Strengthen the Brand
Adidas is one of the most successful brands in the world. It has to face stiff
challenges in the recent times and it can overcome the challenges and
strengthen its brand by following initiatives:
Adidas has to overcome the competitors such as Nike and Puma. In order to
ensure that it emerges as the best brand, it has to look into its market segment.
They have to formulate better strategies so as to outcast its competitors. Adidas
has acquired reebok so as to overcome the competition given by Nike. Adidas
needs to target the premium customers so as to built up a luxury brand and
enhance their brand value.
Adidas needs to develop more and more technologically oriented products
such as the development of the smart shoes, something which is innovative and
can outcast its competitors.
40. Best Ways to Strengthen the Brand
A large portion of Asia and Africa has not been conquered by a
single brand and is untapped. Adidas needs to concentrate on
enhancing themselves in these areas so as to increase the market
share in these continents.
To overcome the distribution related challenges. This can be done
by establishing the partnership with the local companies in order to
increase their share in the market and to have a better distribution in
the market.
41. Steps for Brand Building
Brand building is a process which includes a number of elements such as
promotion, marketing, advertisements, PR, Sales etc. In order to build a
successful brand, the following things are needed to be implemented;
Stand out of the crowd: It is required to set up the target audience. In order to
build a luxury brand, the primary requirement is to concentrate on the needs
of the rich class of people. Develop an innovative strategy which can be
better than the rest. Identify the ways by which you can differentiate your
brands with the others which are already in the market.
Creation of a company culture: It is important that there should be a proper
corporate culture in the organization and the people who can destroy the
company's culture should be eliminated.
Get Investors: In order to create a brand , more and more amount is required
to be invested. Thus, it is important to get more and more investors so as to
have a feasible promotion and marketing.