Masstige concept : Armani wants to maintain its prestige value as well as fill the gap between mid-market and super-premium. Succession of the leader: Who is going to handle the Armani group after the disappear of Giorgio Armani? Fierce competition: Giorgio Armani Group is evolving in a saturated environment and the main competitor is Hugo Boss. Stuff competition in the fashion industry, if one’s fail to satisfy the consumer the competitor will capture that market.
In terms of perceived prestige, new luxury brands are substantially closer to traditional prestige brands than middle-range brands. In terms of price, however, they are substantially closer to middle-range brands than traditional luxury brands. hypothesised positioning of new luxury brands in relation to traditional luxury brands and middle-range brands, and to draw implications for both academics and practitioners Perceptual map consider two dimension of conspicuous and status according masstige concept. Source:
« Most of the famous fashion houses like Christian Dior, Yves Saint-Laurent, Gucci, Versace, Giorgio Armani and many others were built on the personality of the founders. » Kumar Aradhya
The brand architecture of the Armani Group is based on a brand extension. They have 2 dimensions with a horizontal brand extension (Giorgio Armani, Armani Collezioni…) and an vertical product extension (resorts, pens…). They have an « umbrella branding » based on an Italian style with masculanity.
When hear about the name”ARMANi” first word strike in to ours are their “FASHION” and “INNOVATIVE”.They are mainly focus on it, that is their main competitive advantage The other competitor Gucci is traditionally old company and luxuary, it also a kind of masstige. Hugo boss is also a focus on mens wear same like armani,but its traditional and compare to armani its low in praice.
Rank 1.Ralph lauren Rank 2.Diesel Rank 3 Calvin klein Rank 4.Gucci Rank 5 burberry Rank 6 Nike Rank 7 True Religion Rank 8 hugo boss Rank 9 D & G Rank 10 Armani Source:http://www.menstylepower.com/2010/07/top-10-male-fashion-brands/
DIOR is mainly focusing on it « Club effect » with it ultra-premium segment, unlike the ARMANI group is targeting the mass market with 4 various brands. They also stretch the market with a vertical extension with Armani Resorts and Armani pens for instance. They have a large range of products under an “umbrella branding”.
Armani is in niche market, because they are the first mover on it, so they can monopolize the customer loyalty. Moreover Armani is a innovative company, in that way and because of the masculine side of the brand, it can differentiate itself in being leader in the innovative product and the high-prestige view of the brand in costumer 'eyes
Armani has a vertical diversification with a lot of products like apparels to resorts, with a price adapted to the mass costumer. Armani has a sophisticated image brand because of a lot of endorsement of big stars as footballer actress
Where is Armani group positioning according to the market? Can we say that there is a risk of domino effect in the brand portofolio in case of the failure of one brand?
Where is Armani group positioning according to the market? On one hand, the Armani brand architecture has a large range of products which are targeting luxury market and mass market, but on another hand the brand image of Armani is reflecting « the Italian style with masculinity like a tiger ». With its vertical and horizontal dimensions of brand extension, the Armani Group is more positioning in a Fashion Market than a Masstige Market. They are offering at the customers ready made products with a fashionable value. We have to note that there is a risk of brand dilution like Lacoste with the appropriation of clothes by the « American Gangsta’singers » tribe (Segmentation confusion). In the case of Pierre Cardin, this luxury brand totally failed in the Masstige market.
The Giorgio Armani luxury brand is a well established brand name for the customer. If the this ultra-premium brand product (ex: Giorgio Armani) is failing it could be engender the failure of all the brand architecture. If some of the premium segment brand portofolio (ex: Armani Jeans) are failing it shouldn’t affect the global portofolio, especially the brand image of the overall Armani group.
They can focus up to few limits of BOP but further extension might be affect the parent brand image. All their product(dress, mobile launch,casa) relates to a common term life style brand, so they can extend the product which suits to life style brand.
MBA France-India: Strategic Marketing Management: Case study ARMANI Submitted to Dr Christophe Benavent-Université Paris Ouest and Dr Mh Abbo Groupe ESC Pau Submitted by NSB students Nithinmanju Gonnavar, Vidyasagar Sarangapani, and ESC Pau students Julien Bricheux and Cyril Martin 3/17/2011
A R M A N I Julien Bricheux – Nithinmanju Gonnavar – Cyril Martin – Vidyasagar Sarangapani 3/17/2011
Introduction 500 stores worldwide employing over 5000 employees. The Giorgio Armani Group – Armani Report 2009 3/17/2011
MassMarket Prestige Context Key issues New luxury brand positioning and the emergence of Masstige brands EBSCO Giorgio Armani Talks Succession EBSCO 3/17/2011
Masstige strategy Perceptual Map(Masstige ) 3/17/2011 New luxury brand positioning and the emergence of Masstige brands EBSCO Context
Marketing Philosophy The Giorgio Armani Group – Armani Report 2009 3/17/2011
Brand Architecture Italian luxury: A hunting ground for potential mega-brands acquisitions? EBSCO The Giorgio Armani Group – Armani Report 2009 Armani Jeans 3/17/2011
Perceptual Map (Fashion design based) The Giorgio Armani Group – Armani Report 2009 3/17/2011
3/17/2011 TOP 10 MENS FASHION BRANDS (Competitors) FASHION BRANDS www.menstylepower.com/2010/07/top-10-male-fashion-brands/
3/17/2011 Haute-Couture Giorgio Armani Armani Collezioni Emporio Armani Armani Jeans Armani Casa Armani Juniors A/X Resorts Haute-Couture DIOR Mass Market DIOR The club effect The ARMANI Group Mass Concept This slide is a summarize of a class discussion by ESC Pau&NSB MBA students managed by DR. Benavant and DR. Abbo .
Appeal to consumers’ self-concepts and self-worth, prestige, status, image
Hide in small niche market
A market that is too small to warrant entry
There are 1 st mover advantages, so followers are at a disadvantage
Erecting barriers to competition
Discourages entry through expertise, customer loyalty, monopolization, legislation
Keeps the company ahead of competitors
Positioning The Giorgio Armani Group – Armani Report 2009 3/17/2011
Marketing Mix Apparels, accessories, eyewear, watches, jewelry, home interiors, fragrances and cosmetics, high quality, resorts, luxury, value of the brand Endorsement of a lot of stars like Ronaldo, Megan fox, Nadal, Beckham… Banners on line, advertising boards for few products: advertising, TV B2C, sales in Armani shops, retailers shops on line Adapted to a big part of the potential consumer, price from middle class to high superior class Armani Marketing Analysis by Kumar Aradhya 3/17/2011
Open-Questions Masstige VS Luxury Armani-Reebok Giorgio Armani classic The Domino effect Brand Portofolio 3/17/2011 ? ?
3/17/2011 Masstige VS Luxury Mass Market Luxury Market Fashion Market The “ Italian style with masculinity” Diversity of products This slide is a summarize of a class discussion by ESC Pau&NSB MBA students managed by DR. Benavant and DR. Abbo .
3/17/2011 Risk of failure: The Domino Effect No risk of brand failure by the bottom of the brand portfolio. Risk of brand failure by the upper of the brand portfolio. This slide is a summarize of a class discussion by ESC Pau&NSB MBA students managed by DR. Benavant and DR. Abbo .