Salvatore Ferragamo Group S.P.A. is a significant retail based company in luxury goods market worldwide from 1927 year until now. The purpose of this project is analysing of the company strategies by focusing on the company’s retail structure. The project framework is consists of the strategic analysis of the company which is included its target markets, socio-demographic characteristics, lifestyle, values and consumer purchasing behavior, defining brand identity of the company within the framework of Kapferer’s Brand Identity Analysis, explaining marketing mix strategy of the company by focusing on its distribution channel and retail structure, discussing of the company’s market positioning map by comparing its competitors and finally explaining of the company’s experiential marketing strategy into the framework of Scmmitt’s Experiential Analysis. In the project, we applied qualitative research methods during the data collection process which is included primarily data collection, it is consists of interviews and observations, secondly data collection is consists of literatures, articles and internet searches.

1. Visibilia ex invisibilibus
FASHION & LUXURY GOODS MANAGEMENT
CERTIFICATE PROGRAMME
RETAIL MANAGEMENT
MIDTERM INDIVIDUAL PROJECT
Kubra Bayram
The Brand;
May 5th 2013
Milan, Italy

2. Contents
1. Abstract ........................................................................... 1
2. Introduction ..................................................................... 1
3. Company Profile ............................................................. 4
4. Strategic Analysis .......................................................... 5
5. Brand Identity ................................................................ 8
5.1. Kapferer’s Brand Identity Analysis
6. Marketing Mix ............................................................... 9
6.1. Product
6.2. Price
6.3. Place
6.4. Promotion
7. Competitors ................................................................... 13
7.1. Competitors and Positioning Map
8. Experiential Marketing Strategy ................................... 15
8.1. Schmitt’s Experiential Analysis
9. Conclusion ........................................................................ 16

3. Figures
FIGURE -1 : The Critical Dimensions of Luxury Retail Management ............................... 1
FIGURE-2: 4Ps Marketing Mix ......................................................................................... 2
FIGURE-3: Model of Buyer Behavior ................................................................................ 2
FIGURE-4: Kapferer’s Brand Identity Prism ..................................................................... 4
FIGURE-5: Ferragamo Group Revenue by Region ............................................................ 5
FIGURE-6: Ferragamo Group Exposure in Major Markets ................................................ 6
FIGURE-7: Salvatore Ferragamo Brand Identity Analysis according to Kapferer ............. 8
FIGURE-8: Ferragamo Group Revenue by Product Range .............................................. 9
FIGURE-9: Ferragamo Group Revenue by Distribution Channel ...................................... 10
FIGURE-10: FERRAGAMO distribution network at YE – 2010 ....................................... 11
FIGURE-11: Slavatore Ferragamo warehouses worldwide .................................................11
FIGURE-12: comparison with competitors – geographic mix of revenues ...........................13
FIGURE-13: comparison with competitors – product channel mix of revenues ...................14
FIGURE-14: key sector players and Salvatore Ferragamo positioning ...........................................14
FIGURE-15: Salvatore Ferragamo Market Positioning Map............................................................15

4. 1. Abstract
Salvatore Ferragamo Group S.P.A. is a significant retail based company in luxury goods
market worldwide from 1927 year until now. The purpose of this project is analysing of the
company strategies by focusing on the company’s retail structure.
The project framework is consists of the strategic analysis of the company which is
included its target markets, socio-demographic characteristics, lifestyle, values and consumer
purchasing behavior, defining brand identity of the company within the framework of
Kapferer’s Brand Identity Analysis, explaining marketing mix strategy of the company by
focusing on its distribution channel and retail structure, discussing of the company’s market
positioning map by comparing its competitors and finally explaining of the company’s
experiential marketing strategy into the framework of Scmmitt’s Experiential Analysis.
In the project, we applied qualitative research methods during the data collection process
which is included primarily data collection, it is consists of interviews and observations,
secondly data collection is consists of literatures, articles and internet searches.
2. Introduction
In this section, we will give some defines related with the basic terms which is framework
of the project.
Retail Management ( source: www.managementstudyguide.com) is the various
process which helps to the customers to procure the desired merchandise from the retail stores
for their end user refers to retail management. We can see below shape of the main critical
dimensions of luxury retail management;
FIGURE-1: The Critical Dimensions of Luxury Retail Managament,
Michel Chevalier, Michel Gutsatz, page: 6
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5. We can define of target market as ( source: en.wikipedia.org ), is a group of customers
that business has decided to aims its marketing efforts and ultimately its merchandise
towards. A well-defined target market is the first element to a marketing strategy. The
marketing mix variables of product, place ( distribution ), promotion and price are four
elements of a marketing mix strategy that determine the success of a product in the
marketplace.
Consumer Buying Behavior ( Principles of marketing, Philip Kotler, 2001, page; 189 ) is
the buying behavior of final consumers-individuals and households that buy goods and
services for personal consumptions.
FIGURE-2: 4Ps Marketing Mix
Source : http://bpmktg.com/marketing-is-marketing
FIGURE-3: Model of Buyer Behavior
Source:http://classes.bus.oregonstate.edu/fall06/ba390/elton/CourseMaterials/kotler%206.ppt

6. We can say that the consumer characteristics are affected by three basic factors; cultural,
social and finally personal factors. Culture is the most important determining factor of
peoples’ desires and behavior achieved through socialization processes and other key facts
which it includes religion, racial groups and special interests. An another one, we can defined
of social factors as reference groups such as membership, aspirations and groupings, family
such as religion, politics, economics and everyday purchasing behavior, social roles and
statuses can be noted ingredients of social factors. And finally, personal factors which it
includes age, self-concept, values, lifestyle, wealth, occupation, personality and lifecycle.
Defining of market positioning is effecting to the consumer perception by marketers
related with a brand, product or services within the market and creating an identity in the
minds of their target audience for its products, brand or organization. On the other hand,
market positioning is a distinctive aspect for a brand within the marketplace especially among
its competitors.
Brand Identity is a unique set of brand associations that the brand strategist aspires to
create or maintain. These associations represent what the brand stands for and imply a
promise to customers from organization members. (Aaker, 2002:68).
We will be explaining brand identity of the company within the framework of Jean- Noel
Kapferer’s Brand Identity Prism. According to Kapferer, brand identity prism identifies
within six aspects. These six aspects are divided on two dimensions which it includes
constructed source vs. the constructed receiver and externalization vs. internalization;
a. The constructed source vs. the constructed receiver:
The constructed source is represented physique and personality of the brand, on the other
hand, the constructed receiver is represented reflection and self-image.
b. Externalisation vs. Internalisation:
A brand has a social aspect that referring to externalization which refers to physique,
relationship and reflection of the brand. In addition that, the aspects that are incorporated
within the brand, this is the internalization part refers to personality, culture and self-image of
the brand.
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7. According to Kapferer, we can define to these six dimensions of the brand identity which
it includes physical, personality, culture, relationship, reflection and finally self-image. We
can describe of these each dimensions as physical is meaning of the physical qualities and
features of the product or services, personality is the character of the brand, culture represents
the set of values keeping inspiration and energy of the brand, relationship is meaning of
intangible changes between the brand and its customers, reflection refers the image of the
buyer, self-image is the meaning of what the brand says related with the user.
Experiential Marketing is the process of engaging customers with in-depth experiences of
the product or a brand. (http://www.ajbms.org/articlepdf/3ajbms2012262707.pdf). According to
Bernd Schmitt’s experiential theory, customers’ experiences is explained within five
experiential modules which it involves sensory experience ( sense ), affective experience (
feel ), creative cognitive experience ( think ), physical experience, behaviour and lifestyle (
act ) and finally social identity experience ( relate ).
3. Company Profile
The company was founded in 1927 year by talented shoemaker Salvatore Ferragamo
based in Florence, Italy. Salvatore Ferragamo has been known with Italian luxury for more
than three-quarters of a century and it endowed with a unique combination of heritage,
creativity, glamour and exclusive Italian craftsmanship.
The company’s core product is shoes for men and women and its product range occurs
footwear; leather goods containing handbags, suitcases, wallets and other leather accessories;
ready-to-wear and denim; fragrances, eyewear and watches. The company also provides silk
accessories such as ties, foulards and scarves; wool or fabric scarves, shawls and rugs; gloves
and hats; umbrella, towels and cushions; costume jewelry.
FIGURE-4: Kapferer’s Brand Identity Prism
Source: http://www.kapferer.com/mp_pdf/A%26KBrandPersonality_52643.pdf
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8. The product range is composed of 43,9% shoes of group turover, 31,2% leather goods
and handbags, 9,4% ready-to-wear, 7,8% silk and other accessories, 6,1% fragrances, 1,6%
others. ( source of numbers : http://group.ferragamo.com/ ). The company distributes its
products to 92 countries with over 3.000 employees and network of 606 mono-brand stores in
European, American and Asian markets.
4. Strategic Analysis
The Ferragamo Group is well-positioned company in the luxury goods industry and
growth strategy of the company is established on two important issues; one of them is retail
and another one is emerging markets especially, in Asia Pasific countries. The company has
started to improve its strong retail structure in the emerging markets and it is willing to
provide its revenues by increasing its target customer segment through implementing key
strategies in the markets.
The market segment of the Ferragamo group is premium level and the target customer
segment is consists of men and women with strong purchasing power. Also, the Ferragamo
Group is focused on trend in travel retailer concept and it is expected to benefit from the
increasing number of international travellers, especially Asia Pasific countries. In this
direction, the company currently has 147 point of sales located in particular airports for travel
retail worldwide. In 2012 year, revenue of the company was consisted of 36,5% Asia Pasific
counties, 25,1% Europe countries, 22,3% North America, 11,6% Japan, 4,5% Latin America
countries.( source of numbers: http://group.ferragamo.com/ ).
FIGURE-5: Ferragamo Group Revenue by Region
Source of numbers: http://group.ferragamo.com/
5

9. The company is planned to expansion in the emerging markets, firstly Greater China to
increase its target customer audience by opening new stores in the country. Currently, Greater
China is accounted for 20% of the company’ revenue. China is followed by other most
important countries in the Asia Pasific market which are Hong Kong and Taiwan. As a
strategy, the company made some agreements with key partnerships in the last few years that
can be collecting significant knowledge in the local markets and understanding of consumers’
purchase behaviors. Together with improving the Chinese market, the company is willing to
enter both significant potential markets in Asia Pasific, Vietnam and the Philippines.
In South America market, Mexico is the sixth country of the company and the country is
consisted 2.8 % of the group revenue in 2010 year. Growing countries Venezuela and Brazil
are other strategic potential markets for the company in South America market.
Italy is the most important country for the company in European market and it is
accounted 10% of the group revenue in 2010 year.
In addition that, other strategic decisions of the company are improving acquisition of
mono-brand third-party stores especially in China and South East Asia, developing of retail
network in China and other emerging target markets, leverage on communication investments
that can be attracting of Chinese tourists’ spending towards to Ferragamo stores, re-launching
of wholesale channel with better positioning in department stores and multi-brand wholesalers
worldwide, specially North America.
FIGURE-6: Ferragamo Group Exposure in Major Markets Emerging Markets
Source of numbers: http://group.ferragamo.com/ Traditional Markets
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10. We will be explained China’ socio-demographic characteristics, lifestyle, values and
purchasing behavior of the major target customers of Salvatore Ferragamo.
 China ;
China is the third largest country in the world which it is followed by Canada and Russia.
China is the largest population in the world with its currently 1.3 billion people and the
proportion of the population aged is consisted of 0-14 was 26.4%, 15-64 was 67.2% and 65
and over aged was 6.4%. The female ratio of the population is dominated in the country and
estimated the ratio will be increase in China’s demographics in the future. 50 million people
among 1.3 billion of population belong to the middle-class level in the society and the trend
towards to increased strong buying power of young and women. The strong purchasing power
of this kind of group of people is reason why many luxury brands want to launch their
products in the Chinese market. So, most important luxury brands willing to open their new
stores in China that can reach to this target audience with strong purchasing ability.
We can define as three social classes of Chinese customers for the luxury consumptions;
1. Upper class people:
This group of people in China, they never think that how much the spent. They are main
creators of the luxury goods market in China and the money is not problem into consideration,
only they give importance of choices.
2. Newly Rich:
Most of people within the group are high educated and they always try to keep a high
expenditure of their life standards. This group has a great sense of fashion trend and many of
them who were born late 60’s and 70’s. Mostly, these people work as high level positions,
specialist and government officials.
3. Spend Millions:
These people in China who are normally spend most of their salary each month. They have
income between 1000 to 3000 Yuan monthly. These people spent their moneys diligently to
publicize themselves better through luxury goods.
Chinese people needs to famous and prestigious brands that can express their wealth and
desire their identity in the society. Because of this reason, China becomes a great potential
market for the many luxury brands. So, Salvatore Ferragamo has a strategy to exposure in this
market.
According to many market researches, China luxury goods market will be one of the
world’s biggest luxury goods market within 10 years and currently Chinese afford buying
many kinds of luxury brands, most of them personal accessories which it involves cosmetics,
watches, wallets, clothes, jewellery whose are ages are between 30 and 40.
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11. 5. Brand Identity
According to Kapferer, the brand physique is the backbone and its tangible added
values ( source: Kapferer, op.cit., p. 182 ). Salvatore Ferragamo has developed a strong brand
physique through its traditional manufacturing structure. In terms of physical aspects,
Salvatore Ferragamo is developed original and iconic products that focusing on Italian
craftsmanship. The brand has superior product quality with elegance style. The second fact to
consider is personality. Salvatore Ferragamo is Italian family based company and it
represents Italian spirit and its personality has distinctive style, creative and innovative. The
culture of Salvatore Ferragamo brand is focused on unique heritage, “Made in Italian”
artisanal quality and style. The relationship of the brand is linked to sense of exclusiveness,
which drives the customers to feel elegance, glamour and luxury. The reflection of Salvatore
Ferragamo is projected uniqueness, qualitative, aesthetics, self-confident and Renaissance’s
classical beauty. The lastly is the brand’ image. The brand’s self-image is quality-oriented,
prestigious, classical, elegance and sense part of particular group.
6. Marketing Mi
PHYSIQUE
 Original and iconic
products
 Italian cratsmanship
 Superior product desing
 Elegance style
PERSONALITY
 Italian spirit
 Distinctive style
 Creative and innovative
CULTURE
 Unique heritage
 “Made in Italian”
artisanal quality and
style
SELF-IMAGE
 Quality-oriented
 Prestigious
 Classical
 Elegance
 Sense part of
particular group
REFLECTION
 Uniqueness
 Qualitative
 Aesthetics
 Self-confident
 Renaissance’s classical
beauty
RELATIONSHIP
 Exclusiveness
 Glamour
 Luxury
FIGURE-7: Salvatore Ferragamo Brand Identity Analysis according to Kapferer
8

12. 6. Marketing Mix
6.1. Product
The company’s product portfolio involves core shoes for men and women, leather goods
and handbags, ready-to-wear for all occasions, silk and other accessories, fragrances. The core
product of the company, shoes is consisted around 43,9 % of the group turnover. The shoes
collections marked by original and iconic design, perfect fitting, use of top quality materials
and a traditional manufacturing process. The shoes collection involves wide kind of models
with high number of iconic products. Each year, around 300 styles are presented for each
gender for all occasions.
Secondly significant product type for the company, around 31,2 % of additional revenues
are consisted by handbags and leather goods. The products have innovative desires and
handcraft details. Each year, around 200 styles are presented for the women’s handbags which
it includes 900 different combinations.
The revenues of the company is consisted around 9,4 % by ready-to-wear for all
occasions of use and presented in 4 women’s and 4 men’s collections per year.
Accessories product category involves mostly silk ties, scarves and other items such as
gloves, hats, jewellery which consist for 7,8% of additional revenues of the company and play
a key role both entry price items and in the duty free channel. Around 6,1 % consist of total
revenue by fragrances group and produced under the Ferragamo and Emanuel Ungaro names,
distributes all around 15,000 doors worldwide.
The company explains its product concept and design process, under the creative director
who responsible for the collection’s structure with key market trends and its general inspiring
idea. The collection development and arrangement process stars almost one year before its
launch on the market. In preparing process of the collections, the company purchases directly
raw materials from selected suppliers to maintain top quality standards in raw materials.
FIGURE-8: Ferragamo Group Revenue by Product Range
Source of numbers: Company website

13. 6.2. Price
Pricing is an significant aspect for marketing and branding strategy in the market as it is
one of the first indicators of a brand’ s positioning to customers. To explain further, the
luxury goods are not only functional, it represents intangible values to the customers out of
tangible functions. This means that the price of luxury products is significantly higher than the
price of products with similar tangible features but the high intangible characteristics and
benefits of luxury goods justify the high price. ( source of last word: Luxury Fashion
Branding, Uche Okonkwo, page, 140 )
Salvatore Ferragamo is traditionally adopted the premium pricing strategy and demand
for the products typically comes from customers with high purchasing power. Its customer
preferences are based on qualitative rather than quantitative (price) factors and mostly to
brand strenght, product quality, design, style and sense of exclusiveness related to the
purchase. The company’s target audience is less sensitive about price and they expect luxury
goods to be premium priced rather than economically priced. Also, Salvatore Ferragamo’
prices is lower than its competitors but the quality of its products is higher than its
competitors. Finally, ( source: company website ) as a strategy, the company is focused on the
optimization of the product offering, with further leveraging on core shoes, a better product
mix, emphasis on the high-end segment of the offering and strengthening of the premium
price positioning.
6.3. Placement ( Distribution )
Salvatore Ferragamo is a retailer company more in the luxury goods industry rather
than other major players. According to numbers of 2010 year, the company has a global
network of 578 POS, of which 312 are DOS (directly operated stores), consisting around 70%
of its total revenues. Around 30% of turnover belongs to wholesale channel operates, which
involves 266 mono-brand stores run by third parties and the multi-brand business. One of the
major retail strategies of the company gives importance in travel retail, especially Asia Pasific
countries. So, the company has 147 point of sales located in major airports worldwide.
0
10
20
30
40
50
60
70
Retail Wholesale Licences Rental Income
65.3%
33.0%
0.9% 0.7%
Ferragamo Group Revenue by Distribution Channel
FIGURE-9: Ferragamo Group Revenue by Distribution Channel
Source of numbers: Company website
10

14. .
As indicated below chart, also the company has two digital stores serving the European and
US markets in which its distribution network.
REGION # DOS # T POS ( ** ) TOTAL
EUROPE 66 (*) 81 147
NORTH AMERICA 55 (*) 47 92
JAPAN 77 9 86
ASIA PASIFIC 97 99 196
LATIN AMERICA 27 30 57
TOTAL 312 266 578
The company collects raw materials in Osmannoro ( Florence ), all completed products
are placed in Prato warehouse for RTW and Osmannoro for all other product categories. Out
of these two central warehouses, the company uses seven main regional
warehouses/distribution centers in US, Mexico City and five key countries in Asia Pasific
area.
FIGURE-10: FERRAGAMO distribution network at YE – 2010
Source: Mediobanca Securities
(*) include one online-store operating in US and another operating in Europe (**) third party
operated stores.
FIGURE-11: Slavatore Ferragamo warehouses worldwide
11

15. 6.4. Promotion (Communication )
We can define promotion as a communication tool to give message of a brand to its
customers through various means. The communication tool includes advertising, sales
promotion, personal selling, public relations, sponsorships, cold-calling and several others. In
additional that new promotional methods involve online banner advertising and pop-ups, e-
mail alerts and marketing, mobile phone alerts, movies, books and music, celebrity
collaborations and currently ipod-casting.
As communication strategy, Salvatore Ferragamo is intends to increase significantly its
communication investments, to consolidate its positioning in the “absolute luxury segment”
and to emphasize its “Made in Italy” value position. ( source: company website ). The
company is implemented four selling campaigns during the year. In the advertising
campaigns, mostly the company is engaged with celebrities and famous top models such as
Kate Moss, Gisele Bündchen, Claudia Schiffer and so on. The campaigns is formed attractive
photo shooting and also short video films which accompanied by fabulous background
atmosphere to attract its target audience’ attention and give sense of exclusiveness.
On the other hand, the company is focused on events worldwide to build strong brand
image and communicating proactively with its customers and other target audience such as
fashion magazines and journalists, celebrities, bloggers, editors, brand managers in the
fashion and luxury sector. We can give as an example for the event communications, the
brand has presented its 2013 Resort collection with an exclusive event at Louvre Museum in
Paris, France.
Salvatore Ferragamo is not only a luxury brand, it also gives importance its heritage and
culture. So, the company has operated headquarter in building of Palazzo Spini Ferroni in
Florence, Italy since 1938 year, also the brand has used this building as a museum since 1995
year. Salvatore Ferragamo museum involves major flagship store where organizing many
cultural activities within it that can be provide different and unique experience for its
customers during the shopping. The museum involves a collection of over ten thousand
models of shoes designed by Ferragamo over 40 years. For the company, the museum is not
just to records the history, also to design, organize and promote exhibitions, seminars and
other events focusing on contemporary fashion culture. So, we can say that the museum
serves effective communication tools for Salvatore Ferragamo.
Also, investing in culture and subsequently employ it as a communication strategy for the
company. Because of this reason, sponsorships is very important tool to improve strong
brand awareness in the market. The company is supported many cultural activities, artists and
special exhibitions through sponsorships collaboration, thus it connects with its target
audience and promoting its brand image. We can give some examples for latest sponsorships
of the company; Leonardo Da Vinci Exhibition at Louvre Museum and another one which is
Black Tie Gala in Wallis Anenberg Center for the Performing Arts presented by Salvatore
Ferragamo.
In addition that, the group is developed strategically of e-commerce both in terms of
communication and business, given the potential expansion towards larger and younger
customer target, its higher profitability vs. traditional stores and its huge growth potential
backed by the global brand awareness. Currently, the e-commerce structure of the company
already placed in Europe and US markets. According to the future communication strategy of
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16. the company, next step will be the launch in Korea, Japan and other target markets in Asia
Pasific and Latin America. Another issue, Salvatore Ferragamo’s online presence and social
media strategy is focused on developing target audience and its brand image. The company is
used social media communication tools in very attractive way and it collects market audience
data to analysis its market segment.
7. Competitors
7.1. Competitors and Positioning Map
In this section, we will be explained the market positioning of the Ferragamo by
comparing its competitors in the luxury goods industry worldwide. The market positioning
strategy of the company is set up strong retail channel against its competitors specially
emerging markets. As indicated below chart, Richemont in Asia Pasific, LVMH in the Asia
Pasific and Americas, TOD’S in Europe, Burberry in Europe and American markets are major
competitors of the company according to number of geographic mix of revenues.
EUROPE AMERICAS ROW* o/w ASIA PASIFIC
FERRAGAMO 23% 22% 54% 34%
BURBERRY 47% 28% 25% 21%
TOD'S 75% 7% 18% NA
LVMH 35% 23% 42% 33%
RICHEMONT 32% 14% 54% 37%
According to terms of product mix, Salvatore Ferragamo’s revenues consisted on core
shoes and leather goods more than other product categories, generally around of 70% of the
total revenues of the company. Within luxury goods market for this category, TOD’s is very
close to Ferragamo. On the other hand, as retail channel structure, both Ferragamo and
LVMH are very strong retail and distribution network in the industry.
FERRAGAMO GROUP : comparison with competitors – geographic mix of revenues ( 2010 )
FIGURE-12: Source; Mediobanca Securities,
13

17. According to the number of 2011 year, when the luxury market growht rate was increasing
12%, the company’s sales registered 26% increase and its major competitors’ growht avarage
was increase 19%. So, the Salvatore Ferragamo is well positioned within the luxury goods
industy and increased its sales rate was double of the sector avarage.
SHOES & LEATHER
GOODS
OTHERS RETAIL
WHOLESALE &
LICENSING
FERRAGAMO 72% 28% 70% 31%
BURBERRY 33% 67% 59% 41%
TOD'S 89% 11,5% 51% 49%
LVMH 37% 63% 74% 26%
RICHEMONT 9% 91% 50% 50%
FERRAGAMO GROUP : comparison with competitors – product channel mix of revenues ( 2010 )
FIGURE-13: Source; Mediobanca Securities,
LUXURY GOODS MARKET: key sector players and Salvatore Ferragamo positioning
FIGURE-14: Source; Company informations, press articles, numbers, May 2011
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18. The company’s market positioning map below, when compare with other major players
in the luxury industry, focused on two major indicators are retail network and core products
shoes & leather goods. Finally, LVMH and TOD’s are very close to the Salvatore Ferragamo
in the market according to these two significant indicators.
HIGH
Retail Channel
8. Experiential Marketing Strategy
8.1. Schmitt’s Experiential Analysis
According to module of sense, Salvatore Ferragamo gives a memorable shopping
experience that its sophisticated store atmosphere with highlights the products’ fine quality.
The customers are motivated to purchase through aesthetic store interior design, elegant visual
merchandise style, lively ambience and background music in Ferragamo store. The products,
especially core shoes are exposed like art works within the stores which can be touch
customers’ emotions during their shopping experience. In the stores, also handbags and other
leather goods are presented with very clear way, so the customers can be discover and
experience of the products which can help feel some emotions such as smelling and touching.
Salvatore Ferragamo has a special relationship with its customers through its strong
brand heritage and culture. Also, the products which are presented in the stores have superior
design and high quality. In terms of feel module, the brand touches its customers’ feelings
through strong brand image and quality items. In the stores, the customers feel uniqueness and
exclusiveness during their shopping experience. Salvatore Ferragamo offers creative and
innovative products to its customers as well as elegant. So, we can explain of think module,
Retail Channel
LOW
HIGH
Sales Shoes&Leather Goods
LOW
Sales Shoes&Leather Goods
FIGURE-15: Salvatore Ferragamo Market Positioning Map
15

19. this distinctive aspect of the brand is motivated to its customers towards purchase that
provides more utility rather than only exclusiveness. In the act module, Salvatore Ferregamo
is provided special customer experiences with its mono-brand, department and flagship stores
worldwide. The brand is organized special shopping and product launch events in particular
periods within the stores to provide customer loyalty. These kinds of actions are attracted
attention its customers which can be drive towards to purchase decision. In terms of relate
module, as we know that Salvatore Ferragamo provides high quality, innovative and exclusive
luxury products to the customers. Out of these tangible values, the brand is linked between
customers and their social status, sense part of particular group and prestigious.
9. Conclusion
As conclusion, Salvatore Ferragamo is a prestigious fashion luxury brand which giving
importance to expansion its retail network worldwide. The company strategy mainly set up
improving its retail and distribution network in the growing emerging markets especially Asia
Pasific countries. As the strategy, Salvatore Ferragamo is focused on understanding consumer
purchasing behavior, opening new flagship and department stores, retail travel stores in
particular points in these new markets that can be increase its group revenues and to
expansion within the industry.
Salvatore Ferragamo has a unique brand identity and the company attracts its target
audience through its special brand heritage and culture. The company offers superior quality
to its customers, innovative and creative products which combined with traditional
craftsmanship and aesthetics. By this core utility, Salvatore Ferragomo is impacted to its
customers’ sense of exclusiveness and uniqueness.
The company uses its owns marketing and communicating tools very impressive and non-
traditional way that can be reach its target audience expectations in the target markets. The
company is willing to increase its brand awareness in the target markets through its innovative
and creative marketing strategy.
Salvatore Ferragamo is a well-positioned luxury brand in the industry against its
competitors specially, in terms of retail and distribution channel and core product of shoes &
leather goods. The company has more strong position according to its competitors into the
luxury goods industry by two important facts.
Finally, we can explain experiential marketing strategy of the company as “Salvatore
Ferragamo gives different kind of experiences to its customers’ during the shopping to
develop their strong brand and customer loyalty.
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