Sejal Kasalkar

Valentino Luxury Brand Management Understanding Luxury Traditional Vs Modern Luxury Brand Analysis FAD International Lecturer: Ms. Smita Jain- Contents 1. 2. 3. 4. Brand Origin / Introduction Brand Mood Board with keywords Brand Core Values / Mission Statement Company Figures (Turnover/Sales by Region/ No. of Employees ) 5. Kapferer Identity Prism 6. Target Board and Target Profile 7. Current Product Portfolio including: a. Product- all categories of presence b. Pricing- entry and exit level per product category c. Place- stores across the world 8. SWOT Analysis and Recommendation. 9. Target Board for the new Target Client 10. Proposed Product Extension including: a. Product b. Pricing c. Place 11. Conclusion 12. References Brand Origin • • • • Valentino was founded in 1960 by Valentino Clemente Garavani, who was born on the 11th May 1932. From the age of 13 years old, Valentino decided he wanted to create clothes for women and there was never a time this Italian designer did not want to work in the fashion industry. The premises of Valentino’s first fashion house in 1960 resembled a real ‘maison de couture’. Valentino became well know for his red dresses and the bright shade of colour became known as ‘ Valentino red’ in the fashion industry. Main Lines Mood Board Heritage Elegance Feminity Distinct Design Sensual Brand Core Values Valentino Fashion Group S.p.A. core values is to be protagonist in the Fashion world in the sectors of Fashion and Luxury, delivering maximum quality in every market segment served. We focus on the needs of continually evolving cosmopolitan customers, seeking excellence, with a continuous dialogue between passion and experience. And by fully respecting the ethical principle of correctness, loyalty and transparency Vision Our vision is to exploit Valentino’s full potential, to thrive an innate sense of leadership, a corporate-centric approach and an extremely skilled and talented in-house design team as a leading global luxury fashion house. Company Figures  Valentino has reached its goal of bringing in annual sales of $1 billion, a milestone that the brand and its owner, the Qatar-based Mayhoola for Investments SPC, aimed to cross by the end of 2017. In 2015, the Italian fashion house hit €987 million (about $1.09 billion) in revenue, a 48 percent jump from the year prior.  No. of Employees: 5,001 - 10,000 Kapferer Identity Prism Physique • • • • Quality leather Rock studs Unique V Brand logo Red colour Relationship • Exclusive • Independent • Elegant Reflection • • • • Elite Independent Classy Luxury Personality • • • • Elegant Graceful Romantic Sophisticated Culture • Italian Haute Couture • Heritage Self-Image • Glamorous • Fashionable • Modern Target Profile Consumer A Demographic Gender : Female Age : 25-45 Life Stage: Working professionals, possible starting families, some still without kids and moving into first homes/ renting with partners. Occupation: Professionals working up career ladder in successful jobs e.g. media, publishing, fashion, some in senior managerial positions, old ones may be entrepreneurs. Education: Highly educated to degree level or have learnt through business. Income: $30,000- $100,000 monthly. Geographic Urban/ suburban/ rural : lives in urban areas. Housing type: Renting nice apartment or first property. Behavioral Lifestyle: very busy lifestyle, juggling work, social life & family Consumer B Demographic Gender : Female Age : 16-24 Life Stage: Still studying or beginning careers. Occupation: Students or in entry-level/ grad jobs staring new careers. Education: Highly educated with curious minds because of internet. Income: part-time jobs/parental funding, those who are earning on roughly Income: $21,000-$29,000 monthly. Geographic: Urban/suburban/rural: Urban areas or in university city. Housing Type: Renting. Behavioral: Lifestyle: Students with a bit more time to shop/look for clothes online, may have part-time jobs, very social lifestyle. Some may be working longer hours to move up in careers and lead busy lifestyle. Consumer C Demographic Gender : Female Age: 45+ Life Stage: Senior professionals who have paid off mortgages, may have multiple no. of properties, kids are grown up, some staring retirement. Occupation: senior professionals or retired. Education: Highly educated and well-read. Income- $50,000+ monthly, or retired with income from property. Geographic Urban/suburban/rural: More likely to live in suburbs and some have rural second homes or lives in country and visit the city. Housing type: Have nearly or fully paid off mortgage on larger house. May have more than one house. Behavioral: Lifestyle: Calmer lifestyle, enjoys life more, travel to visit family, goes on holiday. Current Product Portfolio Apparel Leather goods Shoes Accessories Jewelry Fragrances Eyewear Scarfs Furs Haute Couture Valentino Pret a porter RED Valentino Valentino Garavani Licensed furs, silks, fragrances, eyewear HAUTE COUTURE A variety of collection that comprise of unique one-of-a-kind creation exclusively handcrafted by a dedicated team of artisans. Haute couture represents our prestige, creativity. The collection is valued for $20,000 and above PRÊT À PORTER Sophisticated and exclusive apparel-lines for men and women. Creating a timeless modernity with haute couture essence Menswear value from $350 Womenswear value starts from $450 up to $20,000 Womenswear accounts for 45% Menswear 7% of sales Dedicated to the accessories, a vast category that includes bags, shoes, small leather goods, belts and costume jewelry for women and men. Iconic Valentino Rock studs are embellished on most of our accessories. All accessories account for 45% of sales. Bags are valued at $1200 up to $5,500 Shoes are valued at $530 up to $5,500 Accessories are valued at $200 up to $1,500 VALENTINO UOMO A masculine Fragrance for Men, its shape is reminiscent of a bottle of fine liqueur because the perfume inside is an amber liquid. The fragrance represents the search for a timeless modern classic and the sense of Italian history. VALENTINA A sensual and unique fragrance for Woman, Valentina was conceived as couture style and a signature element of distinction that expresses an unconventional feminine ideal. Two master perfumers, Olivier Cresp and Alberto Morillas, created the fragrance as a tribute to today’s Valentino women Perfume is retailed from $75 to $150.. Perfumes are retailed from $70 to $130 EYEWEAR Valentino eyewear for man and women are designed to combine our classic values with contemporary vision as to compel the fresh and younger clientele belonging to the new international jet set. Eyewear are retailed from $320 to $600. A young romantic, and more affordable sisterline that mirrors the house’s top codes. A modern fairytale underscored by girly creations, playful combinations, impalpable fabrics and elegant finishes and details. The product price ranges from $100 to $2000. DISTRIBUTION Valentino is available in over 90 countries through a retail network of 160 directly operated boutiques. SWOT Analysis S W • • • • • TRENGTHS O T Valentino has expanded from just women's wear dresses, into several different lines such as accessories, footwear, men's wear and fragrances. Available online. Excellent branding and marketing strategies. Association with celebrities. Customized products. Limited market share growth for the brand. It also has not been able to establish its presence in emerging economies unlike its competitors • EAKNESSES • • • PPORTUNITIES HREATS • • • • Eco-friendly wear collection. Collaborations with another brands. To engage with emerging markets. Low brand loyalty. Fake products. Other luxury designer. Recommendation • With Valentino being in stage three of the fashion life cycle, they must introduce something new to ensure decline does not happen. A product brand extension would be effective. • Launching a line of luggage bags for travelling, these will a attract new market. • Another brand extension would be to begin selling lingerie collection , beauty products such as makeup and skincare. This would appeal to both their current market and also help engaging with a new market. Demographic Due to Valentino’s high prices, we aim to target 20-35 year olds. A clientele that belongs to the generation of international jet setters. Middle class and High class. Middle class and high income. Psychographic Solid careers, Socialites. Well educated. Perceives luxury goods as status. Appreciation towards fashion, art. Behavioral Purchases products for pleasure and happiness. Purchases for fashion, practicality and as a reward for hard work. Purchase statement luxury pieces to mix with high street lower market level fashion. Desires to be distinctively fashionable. Geographic Fashion capitals. Urban cities Brand Extension Product Inspiration About design: The design of first collection “RED lingerie” will consist of 3 important main ideas, vibrant red, sensual and elegance. Crafted using the finest materials. 90% of female lingerie's made of luxurious silk, exclusive invisible Italian tulle and lace. About list of products: There will be 4 kinds of product of RED lingerie. They are lingerie set, Teddies/Bodysuit, Baby doll and slip. New products such as nightwear will be possible launched depends on the growth of sales since nightwear category costs more but also has significant profits as well (Each luxury nightwear costs generally above $450) Product Description Visual: Diversity of vibrant red color, flower adds a sense of elegance and vivid beauty. These lingerie's are delicate and comfortable at the same time. About the uniqueness: Following every ‘Special Edition with co-creative director. Every collection is limited. Customization: The best present for her Once customer buy a piece of lingerie, it’s possible to add embroidery such as client’s name or any words onto the piece by charging amount of personalization fees Types of product Baby Doll Hot Mess Price:$350 Rose Rush Price:$400 Teddies/Bodysuits Garavani Price:$300 Floret Price:$285 Lingerie set Dare to wear Price:$280 Top:$190 Bottom:$90 Scarlet Price:$320 Top:$210 Bottom:$110 Goddess Price:$250 Top:$211 Bottom:$69 Slip Red wine Price:$400 Ruby Price:$350 Pricing Strategy As luxury products are rich in craftsmanship quality, precision the price will be indicated by care of the artisans who made the valentino's collection. The price doesn’t make luxury but luxury and carefulness make the price so to emphasize the character and importance of valentino red lingerie. We will launch limited range of higher-priced options. The price is higher than the normal lingerie brand. However generally our items are at an affordable price. This objective of pricing strategy is gaining the reputation and market share in order to create ‘A new luxury image’. Place In 3 year- First Valentino lingerie boutique will be Rome (root of the brand), then Milan (trend and fashion center in Italy), New york, Paris and Shanghai. 1. The main objective and function of each boutique aims to provide a precious and intimate moment for female customers to plunge into an exclusive valentino lingerie experience (Luxury experience). 2. Furthermore, Valentino lingerie doesn’t intend to sell the collection online, since it’s still a luxury brand of valentino (even it target less rich clients however it remains it’s reputation and image as a luxury brand) Valentino lingerie prefer to keep the scarcity & limited accessibility We have chosen this development strategy because luxury is not easily available. Conclusion The launch of a new sister brand might be risky, especially in the field of luxury, however though respecting the tradition and the heritage of a classical brand is essential, faced with this changeable market innovation and creativity are also ‘A Must’ with the ‘Red lingerie’ proposition. Valentino will discover more opportunities in a ‘New way’ References           https://www.businessoffashion.com/organisations/valentino https://www.businessoffashion.com/community/people/valentino-garavani https://www.businessoffashion.com/organisations/valentino http://www.valentinogaravanimuseum.com/features https://www.valentino.com/en-us/maison/maison https://www.valentino.com/en-us/maison/collections https://www.valentino.com/en-us/maison/the-stores https://www.valentino.com/en-us/experience/advertising#S19-Woman https://www.pinterest.com/valentino/ https://www.youtube.com/valentino “I know what women want. They want to be beautiful.” —Garavani Valentino Ritu Ghorai Sejal Kasalkar Aishwarya Rane Karishma Ramawat Vimi Jain