DORIAN BY PAUL SMITH

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Marketing Plan, Cobranding and Licensing Project; Fashion Marketing course

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DORIAN BY PAUL SMITH

  1. 1. Dorian by Paul Smith: licensing project Taste different. Be DorianLicensor: Paul Smith ltd.Licensee: Gruppo Campari s.p.a. Mattia Bardella Nicola Cenedese
  2. 2. Dorian by Paul Smith: licensing projectTHE PROJECT  Brand extension: spirit  1 year  Licensor : Paul Smith ltd.  Licensee: Gruppo Campari s.p.a.  Product name : Dorian by Paul Smith
  3. 3. Dorian by Paul Smith: licensing projectTHE BRAND: PAUL SMITH • Nottingham 1970 ( accidentally) •Art college •12 collections; 35 countries; japanese business •Licensing agreements •Fragrances •China •Rugs •Spectacles ( sunglasses) • …… •Co-branding initiatives •Triumph •Evian •£ 150 mln turnover (2009) •ROE (‘09)= 11% •ROA (’09)= 17%
  4. 4. Dorian by Paul Smith: licensing projectProduct lines: man (1/2) PS MAN PAUL SMITH MAN PAUL SMITH LONDON
  5. 5. Dorian by Paul Smith: licensing projectProduct lines: man (2/2) BESPOKE PAUL SMITH JEANS
  6. 6. Dorian by Paul Smith: licensing projectProduct lines: woman (1/2) PAUL SMITH BLACK PAUL SMITH WOMAN PAUL X
  7. 7. Dorian by Paul Smith: licensing projectProduct lines: woman (2/2) PAUL SMITH JEANS
  8. 8. Dorian by Paul Smith: licensing projectProduct lines: others (1/2) FRAGRANCES SPECTACLES ALBEMARLE STREET
  9. 9. Dorian by Paul Smith: licensing projectProduct lines: others (2/2) ALBEMARLE STREET PAUL SMITH & TRIUMPH PAUL SMITH & EVIAN
  10. 10. Dorian by Paul Smith: licensing project ART ENGLISH MODERN STYLEDANDY STRIPES FASHIONABLE SLIM ORIGINAL
  11. 11. Dorian by Paul Smith: licensing projectFLL : fashion licensing lifecycle•No chronological order•Focus on the whole brand management process•Constellation business model•Now : phase 4, new licenses • phase 1 (line extension) e.g. childrenswear collection 1991 • phase 2 (internationalisation) e.g. Watch collection 1994 • phase 3 (retail growth) e.g. “furniture and things” collection 2003 • phase 4 (new licenses) e.g. Paul Smith MINI art car 1998
  12. 12. Dorian by Paul Smith: licensing project ORIGINALITY PRICE
  13. 13. Dorian by Paul Smith: licensing projectTHE PRODUCT: DORIAN• Embodies brand codes•Coherent with brand identity• WHAT : Unique product, unique flavor, two different sizes, design features•WHEN: from Jan.2011• WHERE First year UK ONLY •countries in which PS is present, •specialty stores, exclusive cafès, flagships•HOW •Sweet cherry taste •Location SUCCESFUL CONSUMPTION EXP. •After-dinner or happy hour •Served chilled
  14. 14. Dorian by Paul Smith: licensing project Alcoholic beverages life cycleSALES DORIAN BY PAUL SMITH launch growth maturity decline TIME
  15. 15. Dorian by Paul Smith: licensing projectCompetitive SUPPLIERS Gruppo Campari s.p.acontest Dorian by Paul Smith Jagermeister SUBSTITUTES Montenegro POTENTIAL ENTRANTS Book Baileys Dolce & Gabbana Art exhibit Vodka Cavalli Giorgio Armani Theatre Sambuca Molinari Martini Vermouths BUYERS Flagships Exclusive cafes Wine and spirit stores
  16. 16. Dorian by Paul Smith: licensing projectPrice levels & marketsegmentation VODKA CAVALLI Highly differentiated from 41 £ OUR PRICE DORIAN BY PAUL SMITH 35£/60£ Premium From 26£ to 40£ BAILEYS; SAMBUCA MOLINARI; JAGERMEISTER; MONTENEGRO Medium From 11£ to 25£ MARTINI BIANCO Mass From 5£ to 10£
  17. 17. Dorian by Paul Smith: licensing projectTarget customer AGE FAMILY LIFESTYLE NEEDS 20-35 Single or engaged ( no Dandy Taste sth. New children) Have fun Distinguish him/herself Pleasure of drinking Relax Art and culture Socialize• Demographical and psycographical variables•The cost of a “Dorian by Paul Smith” does not weigh so much on the total daily expense• Young people, enjoy life, easygoing personality, friends•GET THE VALUE BACK
  18. 18. Dorian by Paul Smith: licensing projectThe licensing strategy•Licensee: Gruppo Campari s.p.a. •QUALITY,ENJOYMENT,PASSION •6th biggest player in alcoholic beverages’ market  solid company •Worldwide distribution force (190 countries) •Over 40 brands •13 production plants •CAGR 2004-2008 was 5,8%
  19. 19. Dorian by Paul Smith: licensing project THE LICENSING AGREEMENT•Right to use trademark and registered logo in alcoholic beverages class ( class 33,WIPO)•Production: licensee’s plants of Nanterre (FR);exclusive distribution•10 years;•Royalties: 5% TO; brand’n’logo fee : £30.000 per year;creative effort:£140.000•Communication: 7,5% TO (licensor responsibility)•CollaborationCOMPLEMENTARY SYNERGIES
  20. 20. Dorian by Paul Smith: licensing projectTHE CREATIVE PROCESS INNOVATIVE IDEA • Cherry flavored spirit •Freshness •Versatility COHERENCE WITH PS PLATFORM •Easiness to drink = Easiness to wear •Sweet cherry taste = pleasure + dandy •Not drunk = socialize •Innovation + freshness = originality + young style
  21. 21. Dorian by Paul Smith: licensing project POWERED BY AUTOCAD 3DProduct design (1/2)
  22. 22. Dorian by Paul Smith: licensing project POWERED BY AUTOCAD 3DProduct design (2/2)
  23. 23. Dorian by Paul Smith: licensing projectDorian’s key features:•Recipe(DEVELOPED BY CAMPARI): •cherry taste, freshness, 25% alcoholic volume, medium density, dark red color.•Bottle design: •Tall & Slim; •hexagonal basis, but blunted surfaces; •red (Victorian Age typical velvet color), glossy, transparent glass; •Paul Smith’s typical colored stripes all over the cork; •gold writing: “Dorian by Paul Smith”.•Glasses design: •truncated hexagonal pyramid; •transparent; •red writing “Dorian by Paul Smith”; •colored stripes; •heavy and thick bottom.
  24. 24. Dorian by Paul Smith: licensing project PRICEDorian’spositioning Dorian by Paul SmithBITTER SWEET OVERCROWDED ZONE
  25. 25. Dorian by Paul Smith: licensing projectConsumption experience(1/2) DEDICATED POP
  26. 26. Dorian by Paul Smith: licensing projectConsumption experience (1/2) POWERED BY MATTIA BARDELLA
  27. 27. Dorian by Paul Smith: licensing project THE OPERATIONAL PLAN TURNOVER & BUDGET APR-10/APR-11 75 cl. 150 cl. TOTALVOLUME 75000 25000 100000UNIT RETAIL PRICE £35,00 £60,00TURNOVER £2.625.000,00 £1.500.000,00 £4.125.000,00ROYALTIES (5% TO) £206.250,00BRANDS & LOGOS FEE (per year) £30.000,00CREATIVITY EFFORT REMUNERATION £140.000,00TOTAL GROSS REVENUES £376.250,00PRODUCT DEVELOPMENT £0,00CREATIVITY £138.278,60OPERATIONS £220.657,34COMMUNICATION £309.375,00TOTAL COSTS £668.310,94TOTAL NET REVENUES (LOSS) -£292.060,94
  28. 28. Dorian by Paul Smith: licensing project•Turnover (of the licensee) and costs of the first part of thelaunch, ending with UK’s distribution of the product• First year’s loss: •Exclusive product + short span of sales’time  low volumes •creativity costs, being for the majority fixed costs, won’t be present in the next years •Economic loss BUT image return and brand awareness•LONG-TERM PERSPECTIVE
  29. 29. Dorian by Paul Smith: licensing project PAUL SMITH LTD GRUPPO CAMPARI S.P.A. DORIAN ORGANIZATION DORIAN ORGANIZATION TOP MGMT (Paul Smith) CEO long term idea development supervisor of all coherence Bob phases strategy Kunze- Concewit z Licensing managermanages relations with the licensee takes care of the contracts clauses CO-OPERATION Brand manager Product manager Sales & Mktg;coordinates processes towards the gives hints to the various members of Production; final product the operating line Distribution DORIAN WORK TEAM People involved
  30. 30. Dorian by Paul Smith: licensing projectSchedule PHASE ACTION START DATE1 Concept definition: general idea and business plan 01/04/2010 Negotiate and sign contract 07/05/2010 Concept briefing with Campari 07/06/20102 Bottle and glasses design (packaging) 15/06/2010 SIMULTANEITY Spirits recipe briefing with Campari 15/06/20103 Adv campaign plan 01/09/2010 Press presentation: trade magazines,specialty press 07/10/20104 Finalize last details of Dorians production and packaging 15/11/20105 UK distribution plan 01/12/2010 Event: Dorian at Albemarle street Christmas 20106 Official presentation Jan. 2011 Available at retail 15/01/20117 Export plan 15/03/2011
  31. 31. Dorian by Paul Smith: licensing projectTHE COMMUNICATION PLAN• Taste different. Be Dorian •Taste: to SAVOUR & to BE different •Dorian: dandy, fun, relax, pleasure •Linked to brand identity •Unique framework of reference for communication COHERENCE •Incentive for co-operation with the licensee
  32. 32. Dorian by Paul Smith: licensing project Graphic solutions and logos Colors BackgroundsSTYLE Taste different. Be Dorian.GUID WWW.PAULSMITH.CO.UKE
  33. 33. Dorian by Paul Smith: licensing projectCommunication tools1. PRESS • Fashion & Lifestyle magazines • Trade magazines ( since October 2010)2. PR • Flyers • People selected coherently3. POP • Customized display • Differentiation strategy • Both in specialty stores & flagships
  34. 34. Dorian by Paul Smith: licensing project4. EVENT: DORIAN at ALBEMARLE ST. • PS antiques and furniture shop • Christmas period (before effective launch) • Opinion leaders: young artists and musicians5. WEB TOOLS • Facebook group • Twitter account • Dorian’s website: forum  improve the community issue • PS blog • THE COSTS ARE RELATIVELY LOW
  35. 35. Dorian by Paul Smith: licensing projectCOMMUNICATION PLAN COMMUNICATION PLANTOOLS apr-10 may-10 jun-10 jul-10 aug-10 sept-10 oct-10 nov-10 dec-10 jan-11 feb-11 mar-11 apr-11PRESStrade pressfashion-lifestylemagazinePRPOPEVENTSWEB TOOLSPaul Smith blogFacebookTwitterDorian website
  36. 36. Dorian by Paul Smith: licensing projectThank you for the attention!

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