My research regarding internal and external strategies, the project's tools and a brief analysis of the product luxury market

1. STRATEGYANDMARKETINGMANAGMENT
GeneralGuidelines
INDUSTRY:Product-Luxurysector
CONSULTANT:NicolòFriedman
10.11.2018

2. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
page 2 of 10 TABLE OF CONTENTS
section 1 INTRODUCTION
1.1 Special service: Strategic Consultancy
1.2 Growth Strategy - internal and external strategy
1.3 Main procedure
1.4 Marketing specialist role
section 2 THE MARKET - LUXURY SEGMENT
2.1 Long term strategy
2.2 Short term strategy
2.3 project exemple
section 3 PROPOSAL
3.1 Proposal for Rubeus Milano
03
04
05
06
07
08
09
10
BEST STRATEGY
for
BEST RESULTS

3. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 1 Introductionpage 3 of 10 1.1 Special service: Strategic Consultancy
RESOURCES
AND FUNDINGS
OBJECTIVES
PARTNERS
PROCESSES
..............
VALUE
DIFFERENTIATION
BUSINESS
PROCESS
MARKET
INCOME
SOURCES
BRAND
DISTRIBUTION
Strategic
Consultancy
The aim is to analyze and develop solutions to
make physical assets safe, productive, efficient,
cost-effective and environmentally-friendly.
It promotes multidisciplinary thinking/practice, integrating
key issues, e.g. economics, management, regulations,
technology, services, data, human and organisation, etc.,
to create value for stakeholders realising competitive
advantages.

4. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 1 Introductionpage 4 of 10 1.2 Growth Strategy - internal and external strategy
FUNCTION N
BOARD OF DIRECTORS
FUNCTION N
AREA N AREA N AREA N AREA N AREA N AREA N
FUNCTION N
FUNCTION N
FUNCTION N
FUNCTION N FUNCTION NFUNCTION N
FUNCTION N
FUNCTION N FUNCTION N
The concept of strategy
‘Growth Strategy’ refers to a strategic plan formulated and
implemented for expanding the firm’s business. Every firm
has to develop its own growth strategy according to its
own characteristics and environment.
Generally speaking, it is important to understand that
Strategy can be divided into two different branches:
1. Internal Strategy
Internalstrategyreferstothegrowthwithintheorganisation
by using internal resources. Internal strategy focus on
developing new products, increasing efficiency, hiring the
right people, better marketing etc. In addition, it regards
all the instruments which should be applied in order to
organize in the best way the firm itself (organization chart
- definition of the departments - information flow - etc..).
2. External Strategy
External Strategy refers to understanding the market and
analyzing the reference sector. The aim is to find out the
best strategy in order to satisfy the customer segments.
These analysis and procedures can be applied for new
markets as well.
3. Best practice
The coherence between the internal and external strategy
is fundamental in order to achieve the Coherence.
It is important to analyze the market vision and define the
firm mission to reach the targets.
A set of analysis, processes and methodology (concerning the firm from inside)
FIRM MISSION
example of procedures: expansion; diversification; modernization
B set of analysis, processes and
methodology (concerning the market
and the sector)
MARKET VISION
example of procedures: foreign
collaboration and JV;Acquisition and
Merger
procedural coherence between A
and B in order to reach
SUCCESS
THE FIRM
THE ORGANIZATION
related to the
REFERENCE SECTOR
INSIDE OUTSIDE
MARKET
CURRENT
MARKET
NEW
MARKETS
1. INTERNAL STRATEGY 2. EXTERNAL STRATEGY3. BEST PRACTICE

5. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 1 Introductionpage 5 of 10 1.3 Main procedure
The Typical Project Life Cycle (Phases)
A standard project typically has the following four major
phases (each with its own agenda of tasks and issues):
1. initiation, 2. planning, 3. execution, 4. control and 5.
closure.
The current trend
Industry 4.0 is a name given to the current trend
of automation and data exchange in manufacturing
technologies. It includes cyber-physical systems, the
Internet of things, cloud computing and cognitive
computing. Industry 4.0 is commonly referred to as the
fourth industrial revolution. Industry 4.0 fosters what has
been called a “smart factory”.
Innovation
• The logic, tools and procedures from the product and
services fields are becoming closer.
• Each procedure, analysis is considered unique, thus it
is treated as a “single project”, following its Life
Cycle
1. INTERNAL STRATEGY
Procedure A
Procedure C
Procedure B
Procedure D
2. EXTERNAL STRATEGY
project charter:
• approch to be used
• involved resources
• project deliverables
(targets to reach)
• directly involved to build
up the strategy
• directly involved to
refine the strategy
• infromed of the close
out results
+
+
TOOL
CLIENT CLIENT CLIENT
final strategy-report:
• timing
• cost
• risk
• performance index
TOOL
control-monitor tools:
in order to understand if the
strategy is going in the right
direction
• control the targets
• monitor the process
TOOL
close-out report:
• collect the lesson
learned
TOOL
strategy execution

6. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 1 Introductionpage 6 of 10 1.4 Marketing specialist role
IF WE ARE DEALING WITH STRATEGY WE ARE
REFERRING TO THE......
Marketing specialist role
He is in charge of researches and analyses demographics,
pricing schedules, market trends, competitor products, and
other information relevant to the company’s marketing
objectives. He Uses marketing expertise to help direct
strategy and planning for promotional materials, sales
tactics, and other department activities. Creates and
develops new campaigns, advertising copy, and other
marketing materials.
IN ORDER TO CLARIFY....
Differences between the Commercial and
Marketing Department
It is not unusual to see CEO, COO, bosses and co-workers
on the difference in functions and characteristics between
the Commercial and Marketing Department.
Actually, both departments complement each
other, being the Marketing Department an
enhancer of the actions on the Commercial area.
Commercial Department
The Commercial Department is the main responsible for
coordinate the actions in order to sell the products and
services that the company might have, in order to obtain
profit and financial revenue to make possible to grow and
survive economically.
Marketing Department
It is the head of indirectly selling strategies.
The professionals of this department should be able
to study the markets, verify best options and planning
strategies for the companies be able to sell more products
and services.
STRONG INTERACTION BETWEEN THESE
DEPARTMENTS IN ORDER TO BUILD THE MOST
EFFICIENT STRATEGY
BOARD OF DIRECTORS
FINANCE
DEPARTMENT
STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF
DESIGN
DEPARTMENT
PROCUREMENT
DEPARTMENT
PRODUCTION
DEPARTMENT
LOGISTIC
DEPARTMENT
PR
DEPARTMENT
COMMERCIAL
DEPARTMENT
MARKETING
DEPARTMENT
TYPICAL ORGANIZATION CHART - FUNCTIONAL STRUCTURE

7. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 2 The market - Luxury segmentpage 7 of 10 2.1 Long term strategy
Initial assumption:
Market segment: luxury goods
strategy: long-term
BRAND AWARENESS
Brand awareness refers to the extent to which customers are able to
recall or recognise a brand.Brand awareness is a key consideration
in consumer behaviour, advertising management, brand management
and strategy development. The consumer’s ability to recognise or
recall a brand is central to purchasing decision-making.
BRAND DESIRABILITY
When a brand is considered particularly desirable and attractive by
a certain group of customers, we call it brand desirability. It develops
in the presence of a good value fit – meaning when the values of
consumers closely match those of the brand.
APPLY SCARCITY TO VALUE THE GOOD
It states that limited supply, combined with high demand, equals a
lack of pricing equilibrium.Typically, demand and supply will gravitate
prices to a stable balance; however, scarcity of a good or service
changes the way buyers will value the purchase, thus leading to new
market conditions.
FIRM APPROACH
APPROACH 1:
TIME: from 0 to 10 years
LOGIC: WLS - Multi-brand store
APPROACH 2:
TIME: from 0 to 10 years
LOGIC: PRV - Private Customers
APPROACH 3:
TIME: from 10 to ∞ years
LOGIC: RTL - Mono-brand retail stores
* This is a general scheme that must be customized following an in-
depth analysis of the brand under investigation
A. THEORETICAL MODEL
MULTI-BRAND STORES
Concentrate on place the goods/products in multi brand store in line with the
market segment in order to let brand awareness and desirability grow.
PRIVATE CUSTOMERS
Use company contacts to sell the product to private customers.
MONO-BRAND RETAIL STORES
Skip into a Mono-brand approach. Since the brand awareness and desirability
at this moment is strarting to be high, it makes sense to invest in a Mono-
brand store.
Investigate the BOUTIQUE logic (since we are within the luxury segment)
“A boutique is actually a specialized type of retail store. It is distinct from
other retail businesses based on its more limited size, scope and inventory.
When operating a retail business, it is important to understand distinct
attributes, and relative strengths and weaknesses.”
TIME
GENERAL MODEL - LONG TERM BEHAVIOUR IN PRODUCT MARKET - LUXURY GOODS
*LONG TERM MACRO-STRATEGY - “best practice”
BRAND
AWARENESS
BRAND
DESIRABILITY
FIRM
APPROACH
1. WLS B2B logic
2. PRV B2C logic
3. RTL B2C logic
LOW
LOW
GROWTH CURVE
GROWTH CURVE
GROWTH CURVE
DECREASE CURVE
HIGH
time 0 time 10 years time ∞
HIGH
scarcity
principle
(control
the selling
quantity)

8. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 2 The market - Luxury segmentpage 8 of 10 2.2 Short term strategy
MULTI-BRAND
STORES
TIME
GENERAL MODEL - SHORT TERM BEHAVIOUR
figure A
SHORT TERM STRATEGY
BRAND
AWARENESS
BRAND
DESIRABILITY
FIRM
APPROACH
1. WLS B2B logic
LOW
PROJECT 1
PROJECT 3
PROJECT 2
PROJECT 4
LOW
HIGH
time 0 time 2 years
HIGH
B. STRATEGY AND GENERAL STEPS
This is a general scheme that must be customized following
an in-depth analysis of the brand under investigation.
The aim of this slide is to show a set of guidelines
(template) to understand the process which has to be
followed giving an example explained below.
STEP 1:
After having drawn the general long-term strategy (related
to the time factor), it is possible to jump into the Short-
term strategy. It is important to have always in mind the
long-term strategy (show as a general example in the
previous page) in order to control and monitor the long-
term direction. The short-term timing has to be decided in
according to external factors and in line with the board
will. In this example, I have decided to consider a two-
year interval (figure A). At this moment it is possible
to extract from the scheme the data, called the initial
assumption, fundamental for each process INPUT.
STEP 2/3:
The methodological process to be applied for step 2
(internal strategy) and step 3 (external strategy) is the
same.As previously explained in section 1,for each strategy
there is a set of processes,procedures and analysis that are
considered as “unique projects”. It means that each one
has to follow the 5 typical phase of the Project Life Cycle.
internal strategy
set of possible procedures, analysis, processes:
• internal organization (organization chart)
• information flow between the internal stakeholders
• individuation of the departments
• product development
• diversification in the business line
external strategy
set of possible procedures, analysis, processes:
• market analysis
• market penetration
• market strategy
tools:
• SWOT analysis, PEST analysis, Porter’s five forces
analysis.
In the following page, an example of a procedure
treated as a “unique project” is shown.
STEP 1: looking at the general model and understand the time position
Initial assumption:
Market segment: luxury goods
strategy: short term
brand awareness: growing
brand desirability: growing
frim approach: WLS - multi brand stores
PRV - Private Customers
STEP 2: Build the internal strategy
Apply a set of analysis, processes and methodology (concering the firm from inside),
Each single analysis, process, methodology is seen as a “unique project”, thus it has to
follow The Typical Project Life Cycle (Phases).
1. initiation, 2. planning, 3. execution, 4. control and 5. closure.
STEP 3: Build the external strategy
Apply a set of analysis, processes and methodology (concering the market and the
sector)
Each single analysis, process, methodology is seen as a “unique project”, thus it has to
follow The Typical Project Life Cycle (Phases).
1. initiation, 2. planning, 3. execution, 4. control and 5. closure.
ANALYZETHEEXTERNAL
ENVIRONMENT(elements)
INSIDETHEFIRM
internalvision
OUTSIDETHEFIRM
externalvision-markets
1
1
1
1
2
2
2
2
3
3
3
3
4
4
4
4
5
5
5
5
PRIVATE CUSTOMERS
2. PRV B2C logic

9. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 2 The market - Luxury segmentpage 9 of 10 2.3 Project template
Hereafter there is an example of a procedure/project with
only a methodological purpose. All the data has to be
verified.
preliminary report:
This report will collect all the
preliminary data (after
an investigation with all the
resources) in order to set the
needs and the targets.
In addition, the strategy will
be drawn up. More option will
be investigated without going
deeply into the topics.
In this phase the client
involved (member of the
board, commercial director) is
fundamental to properly draft
the report.
At time 1 the report is submitted
to the client in order for him
to confirm the preliminary
assumptions.
during all the process:
through group meetings to
share information or individual
meetings to understand the
needs
PHASE 1 AND 2 ARE THE MOST IMPORTANT ONES.
IT IS FUNDAMENTAL THE CLIENT’S INVOLVEMENT,
AND AVAILABILITY TO BUILD THE MOST PRECISE
STRATEGY.
COLLECTING THE
“LESON LEARNED” IS
IMPORTANT FOR FUTURE
PROJECTS
during all the process:
through group meetings to
share information or individual
meetings to understand the
needs
Punctual:
In this phase the Client is
involved only at the submission
moment.
Punctual:
In this phase the Client is involved
only at the submission moment.
Not required:
1. initiation
CLIENT’S
INVOLVEMENT
NOTES
final strategy-report:
At this moment all the preliminary
assumptions are confirmed.
The final report will contain the
proper strategy with all the
analysis and approaches to be
applied.
If in the preliminary report there
are more than one options, in the
final report only one option (the
best one) is considered.
At time 2 the report is submitted
to the client in order to confirm the
strategy.
This is the execution phase. It
means that during this phase the
strategy described within the
final report has to be applied.
No proper deliverables have to
be draft.
The timing of execution depends
on the project.
2. planning 3. execution
control-monitor report:
During this phase, the execution
actions have to be monitored and
controlled.
The approach consists in
analyzing if all the strategy’s
aspects are properly applied
and performed. If some aspects
are not applied or performed in the
wrong way, preventive actions will
be taken to re-align the strategy
with its execution.
At time n1-n2-etc.. the report is
submitted to the client in order to
be involved in the control-monitor
process. Reporting timing will
be decided in according to the
project’s needs.
4. control
close-out report:
When the strategy is properly
applied, all the stakeholders
involved in the performance have
understood the process and the
approach has become a “common
behaviour” the project can be
considered closed.
At this moment a close-out report
will be draft in order to collect
the “lesson learned” and all the
reached targets.
At time n3 the report is submitted
to the client.
5. closure
Project Life Cycle - example of phases, deliverables, timing and client’s involvement
time 0 time 1 time 2 time n1 time n2 time n3
time ∞
TIME
PHASE
DELIVERABLE
SUBMISSIONS
REPORT
SUBMITTED
REPORT
SUBMITTED
REPORT
SUBMITTED
REPORTS
SUBMITTED

10. General Guidelines
STRATEGY and INNOVATION © 2018 Nicolò Friedman All Rights Reserved
section 3 PROPOSALpage 10 of 10 3.1 PROPOSAL FOR RUBEUS MILANO
PROJECT n1,n2,n3......
PROJECT n1,n2,n3...... PROJECT n1,n2,n3...... PROJECT n1,n2,n3......
PROJECT n1,n2,n3......
STEP 1: looking at the general model and understand the time position
Initial assumption:
Market segment: luxury goods
strategy: short term
brand awareness: growing
brand desirability: growing
frim approach: WLS - multi brand stores
STEP 1: looking at
the general model and
understand the time
position
STEP 2: Build the internal
strategy
STEP 3: Build the external
strategy
A: analyze the situation as-is means analyze the firm, the organization, the resources,
the business, etc...
DURING THIS PROCESS IS FUNDAMENTAL THE FIRM’S INVOLVEMENT (BOARD AND
RESOURCES) IN ORDER FOR THE CONSULTANT TO KNOW DEEPLY THE SITUATION AS-
IS.
TOOLS: focus meeting with client and consultant
OUTPUT: list of action, strategies, processes and methodology of the firm
B: prioritize the outputs (action, strategies, processes and methodology)
TAKE THE OUTPUT LIST AND PRIORITIZE THEM CONSIDERING THE RISK LEVEL (HIGH),
THE IMPACTANDTHE URGENCY OFACTION.THIS PROCESSALLOWSTO UNDERSTAND
THE STRENGTH AND WEAKNESS POINTS OF THE COMPANY AND UNDERSTAND
WHERE TO START TO BUILD THE STRATEGY.
TOOLS: focus meeting with client and consultant
OUTPUT: list of action, strategies, processes and methodology WITH PRIORITY
STEP 2: Build the internal strategy
Apply a set of analysis, processes and methodology (concering the firm from inside),
Each single analysis, process, methodology is seen as a “unique project”, thus it has to
follow The Typical Project Life Cycle (Phases).
1. initiation, 2. planning, 3. execution, 4. control and 5. closure.
STEP 3: Build the external strategy
Apply a set of analysis, processes and methodology (concering the market and the
sector)
Each single analysis, process, methodology is seen as a “unique project”, thus it has to
follow The Typical Project Life Cycle (Phases).
1. initiation, 2. planning, 3. execution, 4. control and 5. closure.
ANALYZETHEEXTERNAL
ENVIRONMENT(elements)
ANALYZETHESITUATION
AS-IS
BUILD THE SITUATION TO BE
PRIORITIZETHEOUTPUTS
INSIDETHEFIRM
internalvision
OUTSIDETHEFIRM
externalvision-markets
1
1
2
2
3
3
4
4
5
5
SHORT-TERM STRATEGY - start up firm
The overall process (step 1,2,3) is applied in the following order for start-up firm (business not running)
SHORT-TERM STRATEGY - firm with business ongoing
If the firm is already in the market and has got an ongoing busIness, the approach to follow is described
above:
the first project to be carried out will be the one corresponding to the first item on the list
(categorized as the riskiest one with the most urgent reference action). It means that the temporal
consequentiality of step 1 (with all his projects), step 2 (with all his projects) and step 3 (with all
his projects) must not be followed, but the temporal order of the projects will be given by the list.