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PRESENTATION ON IN DEPTH STUDY FOR THE
BRAND –GIORGIO ARMANI
• Giorgio Armani started the company in 1975.
• Being a designer himself, he made apparel with his sense of
aesthetics, beauty and luxury, a sense that appealed to the
elite of the society.
• Headquartered in Milan,Italy.
• Giorgio Armani become one of the most respected and
known brand names in the fashion and luxury brand
industry.
• It is also one of the most highly valued fashion companies in
the world with a value of over USD 3.3 billion.
ABOUT
• Umbrella branding is followed by Giorgio Armani brand .
• With many sub-brands designed under the parent umbrella brand of Giorgio Armani to cater to the specific
needs of different market segments, it has become one of the strongest fashion and luxury brands in the
world.
• The brand is built on 3 pillars: class, quality and exclusivity.
• Its product lines cover all corners of fashion, including apparel, swimwear, accessories, perfume,
cosmetics, watches, eye wear, bags and shoes for men, women and kids.
BRANDING STRATEGY
Armani Prive Armani Collizioni
Emporio Armani Armani Junior
Armani Exchange Armani Jeans
Armani
Accessori
Armani
Casa
Armani
Hotels/Restaurant's
Armani
Dolci
Armani
Fiori
GIORGIO ARMANI
The Haute couture
(High end design)
Ready To Wear
(Upper Bridge)
Ready To Wear
(Mass Market)
Sub-Brands
(Specialty)
BRAND ARCHITECTURE
EA7
• Armani’s couture line developed in 2005 for the red carpet.
• It offers gala and award-show wear including gowns and suits that are ultra-luxurious and exemplifying
other products involve fragrances for both men and women
• This line is almost exclusively targeted at the rich and famous.
ARMANI /PRIVEARMANI / COLLEZIONI
ARMANI / COLLEZIONI
• This is Armani’s venture into a slightly lower priced market segment.
• This basically caters to the segment of people who aspire to wear high quality Armani apparel but
cannot afford the ultimate signature line.
• It provides made-to-measure tailored suits and shirts where every element can be chosen
• Its price point is almost 20% lower than the main line.
Emporio / Armani and Armani / Junior
Emporio Armani: Targeted especially at the young professional segment in the 25 to 35 year old age
group, the Emporio Armani brand provides fashionable and contemporary designs that are relevant to the
target customers.
• Armani Junior: The brand is best known for its sophisticated simplicity, sleek tailoring and classic
colours.
• Taking inspiration from the adult line, sumptuous materials and attention to detail are combined to create
a collection which is synonymous with quality.
ARMANI / CASA
•This brand shows how Giorgio Armani presents his ideal for living, his dream of the perfect environment: an
intimate and comfortable space in which to relax, unwind and entertain.
•It offers up-market furniture, home accessories, textiles and decorative objects.
•In 2017 they completed a project in Beijing which consists of homes, a 5A office building, a shopping street,
underground malls and supporting facilities. The design and building of facilities will be managed by Armani
Casa.
ARMANI /BEAUTY
• This beauty line reflects the signature Armani sophistication in its makeup, skincare and fragrances.
• It teams up with international makeup artists, like Linda Cantello, to communicate its expert knowledge
in the art of beauty.
ARMANI /FIORI
• Armani-branded Fiori (flowers): Armani/Fiori was created in 2000 and brings the refined taste and
sophistication of the Armani style to the world of flowers and floral décor.
• The boutiques offer arrangements and decorative elements with clean lines in sophisticated colours.
• It also offers complete and personalized services – clients are attended to and carefully guided through
the selection of their ideal floral arrangements or décor.
• Armani struck a deal with a Dubai-based property group Emaar in 2005 to come up with a chain of Armani
branded hotels and resorts.
• It unveiled its Armani Residences, a luxury collection of 144 private residence homes in Burj Dubai and its
Armani Hotel Dubai in the same building in 2010
• In 2011, it launched Armani Hotel Milano.
• Hotel room price starts from INR 51,000 and goes upto INR 5,22,174 + 30% taxes.
ARMANI HOTELS
PICTURE OF SENDER
PICTURE OF RECEIVER
EXTERNALIZATION
INTERNALIZATION
PERSONALITY
Strong
Creative
Sophisticated
CULTURE
Made-in-Italy fashion
Luxury
SELF-IMAGE
Belongs to high class
Identification as strong &
elegant person & brand
REFELECTION
Modern & elegant person
with high salary
RELATIONSHIP
Loyalty
Pleasure
Long-lasting
PHYSIQUE
Style for men & women
High quality
Comfortable
EVALUATING ARMANI’S BRAND EQUITY
DAVID AAKER’S 10 PRINCIPLES
According to David Aaker, a marketing professor and brand consultant, the following are ten attributes of
a brand that can be used to assess its strength, or equity:
• Price premium
• Customer satisfaction/loyalty
• Perceived quality
• Leadership/popularity
• Value
• Brand personality
• Organizational associations
• Brand awareness
• Market share
• Market price and distribution coverage
$1700 - $5000 $300 - $1600
• Armani's pricing strategy is the premium-pricing strategy.
• The brand applies the same premium-pricing principle to all product categories in varying
degrees.
• It maintains the aura of a real luxury brand and hence, consumers are ready to pay the premium
price for it.
• Example : Price range of dresses
PRICE PREMIUM
• The Armani popup store was opened in Paris during mid-October to promote the Armani make-up
products. It remained open until late December 2016.
• It was not only a branding operation; it was also a very clever marketing operation in terms
of customer loyalty.
• Several clever innovations were deployed to ensure visitors were satisfied and customers remain loyal.
CUSTOMER SATISFATION
Innovation #1 : make up
sessions videotaped
Innovation #2 : exclusive products and
personalized engraving
Innovation #3 : design changes during the
lifetime of the popup store
PERCEIVED QUALITY
• The name Giorgio Armani is associated with high fashion and couture, style and luxury and is
one of the most prestigious brands in the fashion industry.
• Armani products are exclusive to Giorgio Armani boutiques and selected prestigious department
stores.
POPULARITY
• One of the most highly valued fashion companies in the world with a value of over USD 3.3
billion.
• Giorgio Armani is very expansive in Asia Pacific with its multiple future growth markets for
luxury brands.
• For example, China is embracing premium fashion and luxury goods at an increasing pace, and
Giorgio Armani has been one of the forerunners to exploit the market potential.
CHINA’S GOOGLE TREND COMPARISON OF VERSACE AND ARMANI
• Pioneer designer to skilfully use films to promote luxury products.
• Armani’s specialty is a perfect cut, soft fabrics and minimalism.
• Giorgio himself says that ’simplicity is the key note of true elegance.’
• All clothes from the designer are renown for their elegance and harmonious unity with its owner,
hence giving it a competitve edge
• It’s competitors include Calvin Klein, Versace, Chanel, Dior, Prada and Gucci.
DIFFERENTIATION
The elements of the Armani brand personality, which the
public understands through the brand image are
• Upper crust elite society
• Glamour
• Style and sexiness
• Expertise
• Talent
• Sophistication
• trend and precision
• All of which is reflected in the brand products, logo
and the man himself
BRAND PERSONALITY
BRAND ASSOCIATION
Brand association is anything which is deep
seated in customer’s mind about the brand.
• Most common attributes:
• Affluent
• Social acceptance
• Fine manner
• Respect
• Educated
• business class
BRAND AWARENESS
Attributes Giorgio armani Other Sub-brands (Armani
Exchange)
Brand Recall Very strong
Top-of-mind Recall
Weaker
Brand
Recognition
Strong Lesser in comparison
Brand Value And Market Share
• Sustaining consistent brand personality: Building and sustaining a personality that is relevant
and one that resonates with the customer base is one of the most difficult aspects of building a strong
brand. Armani, with its presence in diverse markets, a very wide brand portfolio, and interacting
with diverse set of customers.
• Maintaining financial independence: Giorgio Armani has been the only shareholder of the
company from its inception till now. The company has not taken any bank loans either. With no
pressures from shareholders and without having to bother about meeting quarterly targets, Armani
has been able to operate quite successfully.
• But to continue as a one man company in the future could be quite difficult. With consolidation
happening in many industries, it might just be a matter of time that it catches up with the fashion
industry as well.
Giorgio Armani’s Future Brand
Strategies
• Managing brand architecture: As the brand moves into different territories, interacts
with different sets of customers, and represents different personalities, it becomes quite a task
for maintaining consistency across all of its marketing communications and other activities.
• Brand dilution due to over-stretch: The strong brands in the world have leveraged their
brand equity and extended their brands into newer product categories, newer markets and
even newer market segments.
• By franchising their brand names to literally everything, these brands lost a significant
portion of their strong brand equity.
• Armani will need to consider this strategically especially if it is planning to expand into other
businesses.
SWOT analysis
Strengths:
1.Unique & personality based designing provided ,the best in the world
2. Unique cut or some design helping to differentiate from crowd
3. The major feature of Giorgio Armani clothes & apparels product is hand stitched
apart from machine stitching
4. Designed clothing for various international sports teams and players
Weakness:
1.PETA activists were against the brand hence caused a bad image
2. Limited global presence as compared to a few other international apparel brands
Opportunities:
1.They can extend their market up to certain limit of bottom of pyramid
2.Most of the staff working in Giorgio Armani are young, that makes Giorgio Armani to explore &
design most powerful & attractive product.
3. More global expansions and penetration by tie-ups and opening more stores worldwide
Threats:
1.Catering to a very small upper premium segment target group.
2.They are still slow in picking up in life style brand.
3.Brand duplicity: making fake products of Giorgio Armani available at extremely cheap rates in
lower segment market.
SWOT analysis
Brand Competitors
REFERENCES
• https://www.armani.com/experience/us/corporate/social-responsibility/
• https://www.mbaskool.com/brandguide/lifestyle-and-retail/3009-giorgio-armani.html
• https://fashionunited.uk/news/business/armani-group-reorganises-brand-portfolio/2017072525308
THANK YOU

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Giorgio Armani's Brand Equity and Strategies

  • 1. PRESENTATION ON IN DEPTH STUDY FOR THE BRAND –GIORGIO ARMANI
  • 2. • Giorgio Armani started the company in 1975. • Being a designer himself, he made apparel with his sense of aesthetics, beauty and luxury, a sense that appealed to the elite of the society. • Headquartered in Milan,Italy. • Giorgio Armani become one of the most respected and known brand names in the fashion and luxury brand industry. • It is also one of the most highly valued fashion companies in the world with a value of over USD 3.3 billion. ABOUT
  • 3. • Umbrella branding is followed by Giorgio Armani brand . • With many sub-brands designed under the parent umbrella brand of Giorgio Armani to cater to the specific needs of different market segments, it has become one of the strongest fashion and luxury brands in the world. • The brand is built on 3 pillars: class, quality and exclusivity. • Its product lines cover all corners of fashion, including apparel, swimwear, accessories, perfume, cosmetics, watches, eye wear, bags and shoes for men, women and kids. BRANDING STRATEGY
  • 4. Armani Prive Armani Collizioni Emporio Armani Armani Junior Armani Exchange Armani Jeans Armani Accessori Armani Casa Armani Hotels/Restaurant's Armani Dolci Armani Fiori GIORGIO ARMANI The Haute couture (High end design) Ready To Wear (Upper Bridge) Ready To Wear (Mass Market) Sub-Brands (Specialty) BRAND ARCHITECTURE EA7
  • 5. • Armani’s couture line developed in 2005 for the red carpet. • It offers gala and award-show wear including gowns and suits that are ultra-luxurious and exemplifying other products involve fragrances for both men and women • This line is almost exclusively targeted at the rich and famous. ARMANI /PRIVEARMANI / COLLEZIONI
  • 6. ARMANI / COLLEZIONI • This is Armani’s venture into a slightly lower priced market segment. • This basically caters to the segment of people who aspire to wear high quality Armani apparel but cannot afford the ultimate signature line. • It provides made-to-measure tailored suits and shirts where every element can be chosen • Its price point is almost 20% lower than the main line.
  • 7. Emporio / Armani and Armani / Junior Emporio Armani: Targeted especially at the young professional segment in the 25 to 35 year old age group, the Emporio Armani brand provides fashionable and contemporary designs that are relevant to the target customers. • Armani Junior: The brand is best known for its sophisticated simplicity, sleek tailoring and classic colours. • Taking inspiration from the adult line, sumptuous materials and attention to detail are combined to create a collection which is synonymous with quality.
  • 8. ARMANI / CASA •This brand shows how Giorgio Armani presents his ideal for living, his dream of the perfect environment: an intimate and comfortable space in which to relax, unwind and entertain. •It offers up-market furniture, home accessories, textiles and decorative objects. •In 2017 they completed a project in Beijing which consists of homes, a 5A office building, a shopping street, underground malls and supporting facilities. The design and building of facilities will be managed by Armani Casa.
  • 9. ARMANI /BEAUTY • This beauty line reflects the signature Armani sophistication in its makeup, skincare and fragrances. • It teams up with international makeup artists, like Linda Cantello, to communicate its expert knowledge in the art of beauty. ARMANI /FIORI • Armani-branded Fiori (flowers): Armani/Fiori was created in 2000 and brings the refined taste and sophistication of the Armani style to the world of flowers and floral décor. • The boutiques offer arrangements and decorative elements with clean lines in sophisticated colours. • It also offers complete and personalized services – clients are attended to and carefully guided through the selection of their ideal floral arrangements or décor.
  • 10. • Armani struck a deal with a Dubai-based property group Emaar in 2005 to come up with a chain of Armani branded hotels and resorts. • It unveiled its Armani Residences, a luxury collection of 144 private residence homes in Burj Dubai and its Armani Hotel Dubai in the same building in 2010 • In 2011, it launched Armani Hotel Milano. • Hotel room price starts from INR 51,000 and goes upto INR 5,22,174 + 30% taxes. ARMANI HOTELS
  • 11.
  • 12. PICTURE OF SENDER PICTURE OF RECEIVER EXTERNALIZATION INTERNALIZATION PERSONALITY Strong Creative Sophisticated CULTURE Made-in-Italy fashion Luxury SELF-IMAGE Belongs to high class Identification as strong & elegant person & brand REFELECTION Modern & elegant person with high salary RELATIONSHIP Loyalty Pleasure Long-lasting PHYSIQUE Style for men & women High quality Comfortable
  • 14. DAVID AAKER’S 10 PRINCIPLES According to David Aaker, a marketing professor and brand consultant, the following are ten attributes of a brand that can be used to assess its strength, or equity: • Price premium • Customer satisfaction/loyalty • Perceived quality • Leadership/popularity • Value • Brand personality • Organizational associations • Brand awareness • Market share • Market price and distribution coverage
  • 15. $1700 - $5000 $300 - $1600 • Armani's pricing strategy is the premium-pricing strategy. • The brand applies the same premium-pricing principle to all product categories in varying degrees. • It maintains the aura of a real luxury brand and hence, consumers are ready to pay the premium price for it. • Example : Price range of dresses PRICE PREMIUM
  • 16. • The Armani popup store was opened in Paris during mid-October to promote the Armani make-up products. It remained open until late December 2016. • It was not only a branding operation; it was also a very clever marketing operation in terms of customer loyalty. • Several clever innovations were deployed to ensure visitors were satisfied and customers remain loyal. CUSTOMER SATISFATION
  • 17. Innovation #1 : make up sessions videotaped Innovation #2 : exclusive products and personalized engraving Innovation #3 : design changes during the lifetime of the popup store
  • 18. PERCEIVED QUALITY • The name Giorgio Armani is associated with high fashion and couture, style and luxury and is one of the most prestigious brands in the fashion industry. • Armani products are exclusive to Giorgio Armani boutiques and selected prestigious department stores.
  • 19. POPULARITY • One of the most highly valued fashion companies in the world with a value of over USD 3.3 billion. • Giorgio Armani is very expansive in Asia Pacific with its multiple future growth markets for luxury brands. • For example, China is embracing premium fashion and luxury goods at an increasing pace, and Giorgio Armani has been one of the forerunners to exploit the market potential. CHINA’S GOOGLE TREND COMPARISON OF VERSACE AND ARMANI
  • 20. • Pioneer designer to skilfully use films to promote luxury products. • Armani’s specialty is a perfect cut, soft fabrics and minimalism. • Giorgio himself says that ’simplicity is the key note of true elegance.’ • All clothes from the designer are renown for their elegance and harmonious unity with its owner, hence giving it a competitve edge • It’s competitors include Calvin Klein, Versace, Chanel, Dior, Prada and Gucci. DIFFERENTIATION
  • 21. The elements of the Armani brand personality, which the public understands through the brand image are • Upper crust elite society • Glamour • Style and sexiness • Expertise • Talent • Sophistication • trend and precision • All of which is reflected in the brand products, logo and the man himself BRAND PERSONALITY
  • 22. BRAND ASSOCIATION Brand association is anything which is deep seated in customer’s mind about the brand. • Most common attributes: • Affluent • Social acceptance • Fine manner • Respect • Educated • business class
  • 23. BRAND AWARENESS Attributes Giorgio armani Other Sub-brands (Armani Exchange) Brand Recall Very strong Top-of-mind Recall Weaker Brand Recognition Strong Lesser in comparison
  • 24. Brand Value And Market Share
  • 25. • Sustaining consistent brand personality: Building and sustaining a personality that is relevant and one that resonates with the customer base is one of the most difficult aspects of building a strong brand. Armani, with its presence in diverse markets, a very wide brand portfolio, and interacting with diverse set of customers. • Maintaining financial independence: Giorgio Armani has been the only shareholder of the company from its inception till now. The company has not taken any bank loans either. With no pressures from shareholders and without having to bother about meeting quarterly targets, Armani has been able to operate quite successfully. • But to continue as a one man company in the future could be quite difficult. With consolidation happening in many industries, it might just be a matter of time that it catches up with the fashion industry as well. Giorgio Armani’s Future Brand Strategies
  • 26. • Managing brand architecture: As the brand moves into different territories, interacts with different sets of customers, and represents different personalities, it becomes quite a task for maintaining consistency across all of its marketing communications and other activities. • Brand dilution due to over-stretch: The strong brands in the world have leveraged their brand equity and extended their brands into newer product categories, newer markets and even newer market segments. • By franchising their brand names to literally everything, these brands lost a significant portion of their strong brand equity. • Armani will need to consider this strategically especially if it is planning to expand into other businesses.
  • 27. SWOT analysis Strengths: 1.Unique & personality based designing provided ,the best in the world 2. Unique cut or some design helping to differentiate from crowd 3. The major feature of Giorgio Armani clothes & apparels product is hand stitched apart from machine stitching 4. Designed clothing for various international sports teams and players Weakness: 1.PETA activists were against the brand hence caused a bad image 2. Limited global presence as compared to a few other international apparel brands
  • 28. Opportunities: 1.They can extend their market up to certain limit of bottom of pyramid 2.Most of the staff working in Giorgio Armani are young, that makes Giorgio Armani to explore & design most powerful & attractive product. 3. More global expansions and penetration by tie-ups and opening more stores worldwide Threats: 1.Catering to a very small upper premium segment target group. 2.They are still slow in picking up in life style brand. 3.Brand duplicity: making fake products of Giorgio Armani available at extremely cheap rates in lower segment market. SWOT analysis