The purpose of this study is to take an in-depth look in to the luxury fashion industry to understand the management strategies which were in place to overcome the difficulties and struggles during the recession. The study will take a closer look at how the five forces were having an impact on the companies and its sales figures while discussing how each company interpret their options differently.
The evolution of value and values for private label brands
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
By Professor Byron Sharp, Professor Magda Nenycz-Thiel, James Martin, Zac Anesbury & Professor Bruce
McColl.
Ehrenberg-Bass Institute releases its latest report; study claims big brands are not dying.
BrandZ Top 100 Most Valuable Chinese Brands 2015 ReportKantar
Millward Brown and WPP have released the annual BrandZ™ Top 100 Most Valuable Chinese Brands report and ranking for the fifth consecutive year. In only five years, the report has become a strong resource for understanding Chinese brands and the dynamics that drive value growth.
http://bit.ly/1C7cfzE
Marico is one of the successful Indian conglomerates with its interests aligned with manufacturing industry and retailing consumer goods in addition to catering services in the beauty space. The origin of the company takes back us to the year 1948 when a trading business family, Mariwala based in Mumbai started Bombay Oil Industries Ltd. BOIL facility was mainly comprised of a vegetable oil refinery, a chemical plant and a coconut oil extraction plant. BOIL started to diversify into different branded customer products. They incorporated Marico Foods Limited in 1988 and shifted the consumer products division of BOIL into it. In the year 1990, BOIL made an agreement with Marico to share its vegetable oil brand Saffola and Coconut oil brand Parachute. The company successfully accomplished several acquisitions in the later years. The most notable one is the acquisition of P & G's anti-lice treatment brand, Mediker in 1999. Marico acquired the Parachute and Saffola brands in the year 2001 from Bombay Oil Industries Ltd. It also entered into skin care industry in 2003 by acquiring Sundari LLC of the USA, a company catering luxury ayurvedic products. The other popular brand acquired by Marico is Manjal, Kerala based herbal bath soap. In this report, we try to understand different marketing parameters on which Marico’s performance can be evaluated like SWOT analysis, PESTEL analysis and Marketing Mix.
The evolution of value and values for private label brands
For more white papers and webinars, go to http://www.sldesignlounge.com
Or visit us at http://www.sld.com
By Professor Byron Sharp, Professor Magda Nenycz-Thiel, James Martin, Zac Anesbury & Professor Bruce
McColl.
Ehrenberg-Bass Institute releases its latest report; study claims big brands are not dying.
BrandZ Top 100 Most Valuable Chinese Brands 2015 ReportKantar
Millward Brown and WPP have released the annual BrandZ™ Top 100 Most Valuable Chinese Brands report and ranking for the fifth consecutive year. In only five years, the report has become a strong resource for understanding Chinese brands and the dynamics that drive value growth.
http://bit.ly/1C7cfzE
Marico is one of the successful Indian conglomerates with its interests aligned with manufacturing industry and retailing consumer goods in addition to catering services in the beauty space. The origin of the company takes back us to the year 1948 when a trading business family, Mariwala based in Mumbai started Bombay Oil Industries Ltd. BOIL facility was mainly comprised of a vegetable oil refinery, a chemical plant and a coconut oil extraction plant. BOIL started to diversify into different branded customer products. They incorporated Marico Foods Limited in 1988 and shifted the consumer products division of BOIL into it. In the year 1990, BOIL made an agreement with Marico to share its vegetable oil brand Saffola and Coconut oil brand Parachute. The company successfully accomplished several acquisitions in the later years. The most notable one is the acquisition of P & G's anti-lice treatment brand, Mediker in 1999. Marico acquired the Parachute and Saffola brands in the year 2001 from Bombay Oil Industries Ltd. It also entered into skin care industry in 2003 by acquiring Sundari LLC of the USA, a company catering luxury ayurvedic products. The other popular brand acquired by Marico is Manjal, Kerala based herbal bath soap. In this report, we try to understand different marketing parameters on which Marico’s performance can be evaluated like SWOT analysis, PESTEL analysis and Marketing Mix.
Wal-Mart, Strategic Development of the company in recent yearsMavlono Uz
Strategic Development of Wal-Mart in recent years and influences of Environmental Models in its startegic development procedure and P Generic Startegy model in Company
The central role of branding in establishing the firm’s identity and building its position in the
global marketplace among customers, retailers and other marketplace participants, makes it
increasingly imperative for firms to establish a clear cut international branding strategy. This study
examines the impact of branding aspects on firm performance in the emerging markets ofSoutheast
Asia. Specifically, the question of standardization versus adaptation of brandpromotion is the focus
of attention. After literature review, a conceptual model suggests that thestandardization of brand
promotion as well as a long-term brand vision provided by management, positively influence target
market performance. Furthermore, the model considers externalenvironmental factors. Data gathered
from a survey with managers allow testing the hypothesesthrough structural equation modelling. The
results of the quantitative study largely support thehypotheses
International Marketing Research Assignment SampleAssignment Prime
Cross-border activities of firms have been of interest for international business
researchers for a long time, and still it is an expanding field of research. Business which want to compete in 21st century must confronted with the task of crafting strategies that anticipate and respond to the rapid pace of change in global market, and that’s why their information needs are changing and becoming more and more complex and diverse. Every company performs the task of marketing research to provide the relevant, accurate, reliable, valid and current information of market to management. The major objectives of this essay is to research emerging market so that opportunities for internationalisation can be found, to understand the primary functions and mark the problems in market research. Maintaining objective in marketing research is essential if marketing management is to have sufficient confidence in its result to be prepared to take risky decisions based upon those results.
This ppt will give u a brief idea about brand equity & it's implication in business and creation of brand.This ppt will also give the basic models of brand equity and idea about it's measurement and how this is being measured.It also give you the idea about the brand and types of brand,positive and negative brand creation.Tracking studies collect information from the consumers on a routine basis over time. Tracking studies employ quantitative study methods.
It provides a basis for decision making
It provides insights to marketing activities
Luxury 2020: The Trends Shaping the Luxury Market of the FutureSeymourSloan
By 2020 we will see a different luxury market.
Luxury will not be immune to the businesss and external changes reshaping the world and these will create challenges that brands must be aware of and seek to maximise.
Wal-Mart, Strategic Development of the company in recent yearsMavlono Uz
Strategic Development of Wal-Mart in recent years and influences of Environmental Models in its startegic development procedure and P Generic Startegy model in Company
The central role of branding in establishing the firm’s identity and building its position in the
global marketplace among customers, retailers and other marketplace participants, makes it
increasingly imperative for firms to establish a clear cut international branding strategy. This study
examines the impact of branding aspects on firm performance in the emerging markets ofSoutheast
Asia. Specifically, the question of standardization versus adaptation of brandpromotion is the focus
of attention. After literature review, a conceptual model suggests that thestandardization of brand
promotion as well as a long-term brand vision provided by management, positively influence target
market performance. Furthermore, the model considers externalenvironmental factors. Data gathered
from a survey with managers allow testing the hypothesesthrough structural equation modelling. The
results of the quantitative study largely support thehypotheses
International Marketing Research Assignment SampleAssignment Prime
Cross-border activities of firms have been of interest for international business
researchers for a long time, and still it is an expanding field of research. Business which want to compete in 21st century must confronted with the task of crafting strategies that anticipate and respond to the rapid pace of change in global market, and that’s why their information needs are changing and becoming more and more complex and diverse. Every company performs the task of marketing research to provide the relevant, accurate, reliable, valid and current information of market to management. The major objectives of this essay is to research emerging market so that opportunities for internationalisation can be found, to understand the primary functions and mark the problems in market research. Maintaining objective in marketing research is essential if marketing management is to have sufficient confidence in its result to be prepared to take risky decisions based upon those results.
This ppt will give u a brief idea about brand equity & it's implication in business and creation of brand.This ppt will also give the basic models of brand equity and idea about it's measurement and how this is being measured.It also give you the idea about the brand and types of brand,positive and negative brand creation.Tracking studies collect information from the consumers on a routine basis over time. Tracking studies employ quantitative study methods.
It provides a basis for decision making
It provides insights to marketing activities
Luxury 2020: The Trends Shaping the Luxury Market of the FutureSeymourSloan
By 2020 we will see a different luxury market.
Luxury will not be immune to the businesss and external changes reshaping the world and these will create challenges that brands must be aware of and seek to maximise.
Luxury and Cosmetics Market and Consumer Trends Chris Cadden
"Increase the digital effort — Luxury companies are behind in an increasingly digital world. New technology has changed the way companies do business, providing new communication channels, with buying behaviors evolving and the emergence of a new segment, the “millennials.” Immediacy is key, so there is a constant need to innovate within the digital world, which seems to contrast with the exclusivity known for its pole position at the core of the luxury market. Luxury brands have to manage dual aspects; namely to maintain their heritage and create long-term value while responding to consumers’ expectations and trying to offer instant gratification. Without innovation companies are risking losing ground to more dynamic, digitally savvy players." -Roberto Bonacina
Peste 150 de tineri din agenţii şi din departamentele de marketing ale clienţilor au luat parte,la evenimentul organizat de IAA Young Professionals pe tema strategiei şi eficienţei în comunicare, ce a avut loc joi, 12 martie, la IAA House.
„Strategia, în mintea unui client, înseamnă atenţia coordonată a întregii echipe: de la agenţie la echipa de vânzări”, a spus Călin Clej. El le-a recomandat tinerilor prezenţi la eveniment să se folosească de „word-of-mouth” şi să încerce să-i angajeze pe consumatori în comunicarea cu brandul. De asemenea, le-a sugerat să pună în practică cele mai curajoase idei, profitând de circumstanţele unei „perioade pilot”.
„Vă puteţi permite să pierdeţi consumatori loiali pentru că puteţi să-i recâştigaţi cu argumente legate de preţ. Lumea se uită acum la criterii raţionale”, a spus Marketingul Managerul PepsiCo. „Este momentul să vă daţi peste cap şi să veniţi cu lucruri absolut revoluţionare. Cei de pe poziţia mea abia aşteaptă să vadă şi altceva decât lacrimi, credit crunch şi dobânzi care cresc”.
Cât despre propria strategie de marketing, Călin Clej a declarat că a reorientat o parte din bugetul de media spre activităţi care urmăresc rezultate pe termen scurt, cum ar fi promoţiile. El a adăugat că mediul online nu se numără printre cele mai eficiente canale de comunicare în perioada de criză, promovarea la raft fiind recomandată în acest caz.
---- copyright: Calin Clej; All rights reserved ----
[Project] Retail Management Report Brands Versus Private Labels- Fighting to WinBiswadeep Ghosh Hazra
INTRODUCTION-
Private label brands are on the rise right now everywhere in the world and command a higher unit share than the strongest of national brands in 77 out of 250 product supermarket categories which is an astonishing 31% and even in 100 of those categories, Private Label comes a close second or third position. However, manufacturers do not realize that sales of private labels sales vary with the economic conditions of the country they are operating in. Their share goes up when the economy is suffering and tanks in stronger growth periods.
The proof of this claim is evident from the following fact- During the last 20 years, Private Label share of markets has averaged out at a decent 14% of the U.S dollar supermarket sales. This share was 17% during 1981-82 at the peak of the recession and in the year 1994, this share dropped to 14.8% despite receiving media adulation. Private labels have managed to pressurize strong national and international brands but brands must also assess the threats that are possible from private labels and whether they will decline or mature in the future.
European Markets have seen quite success with Private Label Brands and compared to USA supermarkets which has only 15% of their sales come from Private Label Brands, European supermarkets has 54% of their sales from PLBs. This is because in Europe, the television markets are highly regulated and hence advertising is limited. Also, grocery chains dominate the entire European landscape and hence retailers hold more power in relation to manufacturers than in the United States of America.
L’Oreal: Local Knowledge, Global Brand
Case Study: What are Some of L’Oreal’s Ways?
Author: Ted Landgraf
The purpose of this case study is: Show how important market
analysis is in all business areas; Know your competition; To strive
and prosper, be an “ABC Organization”; Think outside of the box;
Innovation is powerful; Branding is necessary; Global strategy is
fundamental; Know Your SWOT; and Much more.
Saylor URL: http://www.saylor.org/books Saylor.org
135
Chapter 5
Selecting Business-Level Strategies
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to understand and articulate answers to the following
questions:
1. Why is an examination of generic strategies valuable?
2. What are the four main generic strategies?
3. What is a best-cost strategy?
4. What does it mean to be “stuck in the middle”?
The Competition Takes Aim at Target
On January 13, 2011, Target Corporation announced its intentions to operate stores outside the United
States for the first time. The plan called for Target to enter Canada by purchasing existing leases from a
Canadian retailer and then opening 100 to 150 stores in 2013 and 2014. [1] The chain already included
more than 1,700 stores in forty-nine states. Given the close physical and cultural ties between the United
States and Canada, entering the Canadian market seemed to be a logical move for Target.
In addition to making its initial move beyond the United States, Target had several other sources of pride
in early 2011. The company claimed that 96 percent of American consumers recognized its signature logo,
surpassing the percentages enjoyed by famous brands such as Apple and Nike. In
March, Fortune magazine ranked Target twenty-second on its list of the “World’s Most Admired
Companies.” In May, Target reported that its sales and earnings for the first quarter of 2011 (sales: $15.6
billion; earnings: $689 million) were stronger than they had been in the first quarter of 2010 (sales: $15.2
billion; earnings: $671 million). Yet there were serious causes for concern, too. News stories in the second
half of 2010 about Target’s donations to political candidates had created controversy and unwanted
publicity. And despite increasing sales and profits, Target’s stock price fell about 20 percent during the
first quarter of 2011.
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
136
Concern also surrounded Target’s possible vulnerability to competition within the retail industry. Since its
creation in the early 1960s, Target executives had carved out a lucrative position for the firm. Target offers
relatively low prices on brand-name consumer staples such as cleaning supplies and paper products, but it
also offers chic clothing and household goods. This unique combination helps Target to appeal to fairly
affluent customers. Although Target counts many college students and senior citizens among its devotees,
the typical Target shopper is forty-one years old and has a household income of about $63,000 per year.
Approximately 45 percent of Target customers have children at home, and about 48 percent have a college
degree. [2] Perhaps the most tangible reflection of Target’s upscale position among large retailers is the
tendency of som.
Saylor URL: http://www.saylor.org/books Saylor.org
135
Chapter 5
Selecting Business-Level Strategies
L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to understand and articulate answers to the following
questions:
1. Why is an examination of generic strategies valuable?
2. What are the four main generic strategies?
3. What is a best-cost strategy?
4. What does it mean to be “stuck in the middle”?
The Competition Takes Aim at Target
On January 13, 2011, Target Corporation announced its intentions to operate stores outside the United
States for the first time. The plan called for Target to enter Canada by purchasing existing leases from a
Canadian retailer and then opening 100 to 150 stores in 2013 and 2014. [1] The chain already included
more than 1,700 stores in forty-nine states. Given the close physical and cultural ties between the United
States and Canada, entering the Canadian market seemed to be a logical move for Target.
In addition to making its initial move beyond the United States, Target had several other sources of pride
in early 2011. The company claimed that 96 percent of American consumers recognized its signature logo,
surpassing the percentages enjoyed by famous brands such as Apple and Nike. In
March, Fortune magazine ranked Target twenty-second on its list of the “World’s Most Admired
Companies.” In May, Target reported that its sales and earnings for the first quarter of 2011 (sales: $15.6
billion; earnings: $689 million) were stronger than they had been in the first quarter of 2010 (sales: $15.2
billion; earnings: $671 million). Yet there were serious causes for concern, too. News stories in the second
half of 2010 about Target’s donations to political candidates had created controversy and unwanted
publicity. And despite increasing sales and profits, Target’s stock price fell about 20 percent during the
first quarter of 2011.
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
136
Concern also surrounded Target’s possible vulnerability to competition within the retail industry. Since its
creation in the early 1960s, Target executives had carved out a lucrative position for the firm. Target offers
relatively low prices on brand-name consumer staples such as cleaning supplies and paper products, but it
also offers chic clothing and household goods. This unique combination helps Target to appeal to fairly
affluent customers. Although Target counts many college students and senior citizens among its devotees,
the typical Target shopper is forty-one years old and has a household income of about $63,000 per year.
Approximately 45 percent of Target customers have children at home, and about 48 percent have a college
degree. [2] Perhaps the most tangible reflection of Target’s upscale position among large retailers is the
tendency of som.
The marketing and advertising arms race to create emotional appeal, generate buzz and move up brand valuation league tables, is creating a widening gap between brand strategy and business strategy. In this environment some of the once coolest and iconic brands are faltering at a game they once dominated. The key question for businesses today, is how to expose such strategic blind spots and remain relevant in the face of an evolving marketplace? This article explores one methodology and framework into just how that can be done.
Impact of qualitative research had on the success of marriot hotel chainCharm Rammandala
The purpose of this study is to understand the impact of the research to the success of Marriot hotel chain. Marriot has been conducting market surveys to understand the customer perception and expectations on their hotels, employees and facilities to determine the necessary improvements. As a result of the survey findings, Marriot managed to expand the company offerings to different and varied needs of the customers and effectively cater for different segments of travelers.
A study to evaluate the impact of acquisitions on the bottom line of ebayCharm Rammandala
The purpose of this study is to understand the business model of E-Bay and evaluate the management strategy to determine the overall success of the series of mergers and acquisitions company made over the years. Study will further focus on competitive strategies in use and how it is impacting the growth of the firm.
A study to understand the business model used by zynga, on line social media ...Charm Rammandala
The purpose of this study is to understand the rise of social media gaming industry and how it has evolved over the years. Internet became mainstream in early 2000 and since then social media has become a popular hangout for almost half the population in the world. Social media gaming industry has riding this wave and become a popular industry on its own right. This study will investigate the rise of the social media games and its business models using Zynga as an example.
Study to investigate the correlation between the operating performances of fi...Charm Rammandala
The purpose of this study to understand whether there is a correlation between the operating performance of a firm and its CEO’s compensation. Various scholars and journalists studied and reported in this area over the years with mixed results. Popular notion among general public is that regardless of the performance of the company, CEO’s pay and perks either remain same or increase. Another accusation is most of the mergers and acquisitions taken place to boost the pay of CEO’s rather than to increase the value of shareholder. Study will look in to the validity of these claims to determine whether there is a correlation between the firm performances and the CEO pay
Understand the recent trends in reporting mergers and acquisitions and its im...Charm Rammandala
The purpose of this study is to take a look at the mergers and acquisitions taken place over the last decade and how they were reported in various journals and publications. Study will investigate whether there is a pattern in reporting favoring certain industries and regions and manipulating facts to create a favorable opinion among stakeholders and general public
The purpose of this study is to understand the new product development process of Skullcandy. Study will take an in-depth how the Skullcandy product development process was constructed and how the team dynamics are aligned to achieve the company goals. Also the strategy of team compositions and size help to handle more than one project at any given time. Further, study will look in to the challenges faced by the company to retain employees and motivate them to do their best.
A detailed study to analyze the business strategy of whole foods market incCharm Rammandala
The purpose of this study is to understand the business philosophy behind the Whole Foods Market Inc which is the largest natural and organic foods supermarket in USA. The study will look in to the business strategy of the company along with firm specific resources and capabilities. Further, study will evaluate the future challenges and opportunities for the company.
A detailed study to explore the market opportunities in south korea for texas...Charm Rammandala
The purpose of this study is to explore the market entry strategies for Texas Instruments to supply educational related products for newly opened up South Korean market. The study will look at how to position the company and what are corporate level strategies as well as business level strategies best fit to achieve the competitive advantage. Further, to increase the effective decision making and efficiency, study will look at the best management structures and diversification strategies for the company.
A case study to discuss the management strategy used to avoid closure of baye...Charm Rammandala
The purpose of this study is to understand and explore the management strategies used by senior managers of Bayer’s North American division to avoid closure by the parent company. Study will take a closer look at the corporate management structures and how it was aligned to manage the overall company which included 140 offshore subsidies. The Study will give special attention to North American operation to understand how it was saved from the brink of closure by the management by changing and aligning the corporate structure to reduce the cost and maximizing the revenue.
A study to explore the international business strategy using tnk bp strategic...Charm Rammandala
The purpose of this study is to explore international business strategies to enter new markets using TNK-BP strategic alliance an example. Study will discuss the resource based view as well as institution based view from the BP’s point of view. Further, study will explore how some countries such as Russia and China have different approach towards western countries in international trade and business ethics.
Study to understand the management strategies of new multinationals from the ...Charm Rammandala
The purpose of this study is to understand how the emerging multinational companies from emerging economies such as BRIC countries, Middle East and developing countries like Thailand and Malaysia challenging the traditional multinational companies who have strong roots to developed countries. Using various strategies and business models such as alliances, joint ventures and in some cases wholly owned subsidiaries, newly emerging multinationals have made their presence felt in the world market. This study will take an in-depth look in to the management strategies in place to overcome the barriers and accelerate the growth.
Study to investigate which analysis is the best equipped to understand how co...Charm Rammandala
The purpose of this study is to identify the best method of analysis to deploy to understand how consumers develop preferences for products or services using combination of different attributes.
After conducting a detailed literature review, it was proven that conjoint analysis is the best method to associate for the type of research needed to be carry-out. This study take an in-depth look in to the conjoint analysis method to understand how it use to achieve the intended results
Importance of null and alternate hypothesis in a scientific research study Charm Rammandala
The purpose of this paper is to understand the importance of having a null hypothesis as well as an alternative hypothesis in a scientific research study. Primarily, study will look in to the value of having the dual hypothesis and how it compliment the findings of the study. Further, it will take an in-depth look into the see how research findings bring clarity making it easier for decision makers to implement the recommendations
A study understand the importance of scientific research and its impact to ma...Charm Rammandala
The purpose of this study is to take an in-depth look in to understand the scientific research and its strategic importance to the present day managers who are working to resolve and understand business related matters which are critical to solve in timely manner.
It is widely accepted that decisions taken hastily, based on hunches, past experiences and motivated by the emotional instinct could costly as there is no way of knowing for certain the root causes. Hence it is paramount to conduct a study which is properly though after, meticulously planned and conducted in a logical manner.
This study will take an in-depth look into how to conduct a scientific research and its importance to the manager
Qualitative study on “the role of gender in business negotiations”Charm Rammandala
The purpose of this paper is to critically analyze the qualitative research conducted to investigate the Role gender played in the business negotiations. The paper was submitted by Farideh Farazmand of Lynn University & Yu-te Tu of Chanyu Institute of Technology.
The paper concludes there is no significance in gender when it come to the role of business negotiations. It is the intention of the author of this essay is to analyze the qualitative study along with the related literature review to investigate the validity of the conclusion.
A detailed investigation to validate the popular marketing concept of custome...Charm Rammandala
Understanding customers expectation is one of the fundamental factor’s to retain in the business, whether the business is a service provider or a manufacturer. Simply because if a business fails to understand the customer needs and satisfy the expectations, its running the risk of losing customers instead of gaining. Unsatisfied customer is a liability for any business as it will bring numerous negative outcomes. Apart from losing the business of affected customers, the bad reviews, blog posts and word of mouth will put off many more potential customers.
The notion of customer is always right is a century old concept and it’s becoming more relevant to the current market conditions than ever.
The purpose of this essay is to take an in-depth look in to the concept of customer is always right and evaluate how relevant said concept to the modern market conditions
Importance of practicing lean management concepts in multinational companies Charm Rammandala
The purpose of this article is to investigate through a literature review, to determine the importance of implementing and practicing lean management in multi-national companies. It is well understood that the market conditions highly volatile due to the increased competition from the traditional brick and mortar retailers as well as on-line retailers. In order to retain the current market segment and to possibly increase it, it is vital to maintain the competitive pricing strategy and high quality standards. During the essay it will be discussed how introducing lean principles and concepts, multi-national companies could achieve this objective
A detailed study to evaluate the financial impact of demanding made in usa pr...Charm Rammandala
The purpose of this article is to investigate the notion that increasingly companies trying to promote products made in USA over imported products. Due to the increased influence by politicians and perception of segment of population, companies are looking in to bringing certain manufacturing plants back to USA. This study will focus on understanding motivations behind it and how feasible and practical the notion is and whether it makes any financial sense
Motivations behind the mergers & acquisitions by larger corporationsCharm Rammandala
The purpose of this article is to understand what drives large corporations to mergers and acquisitions. It is noted that large corporations are intensifying their efforts to merge or acquire various firms which strategically important to the growth of the company. This paper will examine the reasons behind the increasing trend of mergers and acquisitions and its true benefit to the shareholders.
Study to investigate the best working capital management strategy to ensure h...Charm Rammandala
The purpose of this article is to define working capital and working capital management strategy and understand how to use it as an important strategic tool to explore investment opportunities, buy back shares, pay as dividends and the same time to use for daily expenditure to ensure smooth operation.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
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A study to understand the management strategy of luxury brands during the recession in 2008
1. A Study to understand the management strategy of luxury brands during the recession 1
A Study to Understand the Management Strategy of Luxury Brands During the Recession in
2008
Charm Rammandala
California Intercontinental University
2. A Study to understand the management strategy of luxury brands during the recession 2
Abstract
The purpose of this study is to take an in-depth look in to the luxury fashion industry to
understand the management strategies which were in place to overcome the difficulties and
struggles during the recession. The study will take a closer look at how the five forces were
having an impact on the companies and its sales figures while discussing how each company
interpret their options differently.
3. A Study to understand the management strategy of luxury brands during the recession 3
A Detailed Study to Understand the Management Strategy of Luxury Brands During the
Recession in 2008
Luxury goods industry is highly specialized in providing superior quality products which
cater for customer’s emotional needs and social status. Typically, luxury goods are bought by
desire rather than the need. For most consumers, luxury mean rarity, exclusivity, quality,
symbolism and refinement. It gives certain level of confidence and emotional strength to the
buyer which makes most buyers essentially a loyal customer (Edwin 2012)
Financial crisis in 2008 and the period soon after it was a period which tested the industry
resilient as well as the customer loyalty to the fullest extent. While the recession had adverse
effect on most of the industries and sectors, luxury goods market was somewhat unaffected
throughout the recession. The sales of luxury goods driven by the image created by various
brands on their products and its ability to evoke a dream factor as well as a way of investing on a
rare product (Solakiri 2015)
Luxury goods market was hit by the recession just as the rest of the industries in most of the
world. Remarkably, as graph 1 shows, within a year it was managed to resurface posting high
sales numbers. In 2011 again industry faced challenges due to European sovereign debt crisis but
yet again proved financial meltdowns in a country, region or even in the world would not be able
4. A Study to understand the management strategy of luxury brands during the recession 4
to keep loyal customers away. The luxury goods market grown by 20% since 2008 financial
crisis and expected to grow 35% by 2018 (Edwin 2012)
Graph 1(Spectrum Group)
Competition faced by luxury goods market
In order to discuss the intensity and the level of competition faced by luxury goods market,
Porter’s five forces is an important tool.
Chart 1 (Gallup)
5. A Study to understand the management strategy of luxury brands during the recession 5
As chart 2 demonstrate porter’s 5 forces consist with 5 elements in the market place which
threatens the existence of a firm. Those 5 forces are,
Threat of new entrance
Bargaining power of customer
Threat of substitute products
Bargaining power of suppliers
Rivalry among existing firms
When we look at the threat of new products to luxury goods market, we are looking at
several different factors. Brand loyalty is one of the main obstacle to new entrance. Vigorous
brand loyalty programs, existing companies constantly trying to keep the loyal customer
followings for their products and service. Craftsmanship, innovation, heritage are not easy for
new entrance to follow. However, new entrance always looking to attract new generation with
extravagance styling and advertising (Chapman 2015)
Scale of economy is another major factor to consider when discussing threat of new entrance.
In order to build a reputation and image as a luxury brand, it is essential to have a visibility in
most exclusive parts of the major cities. This naturally come with a high cost. As well as the best
location, best layouts, fittings are a must. High management cost, high salaries are part of the
expenses. Essentially the amount of money needed in marketing and branding is astronomical.
6. A Study to understand the management strategy of luxury brands during the recession 6
These attributes make it difficult for the new entrance to successfully enter to the market and
challenge the existing brands (Solakiri 2015)
Buyers bargaining power is a formidable force brands have to be aware. It is utmost
important brands have a clear vision regarding the type of customers their catering for and how
the changing environment affect the buying patterns. While European and US customers struggle
with the effects of financial meltdown, China was taking over the market (Edwin 2012). Also it
is noted that over the last decade number of middleclass families significantly reduced in US and
portion of it moved to rich category and rest to the poor category. Luxury industry predominantly
cater to the wealthy individuals and when the population increase in that sector, it is a positive
sign for the industry. Graph 2 demonstrate the number of millionaires in the world in 2015
Graph 2 (Credit Suisse)
Threat of substitute is another element within the 5 forces. Understandably during a financial
meltdown, customers tend to be cautious about the money spent and how its spent. Segment of
7. A Study to understand the management strategy of luxury brands during the recession 7
the customers would scale down the amount spent on certain luxury brands and moved down to
high street brands. It is noted during the last 5 years, high street brand got extremely good at
replicating the look and the quality of high fashion brands. This may result in customers
switching to high street brands but inevitably at a cost as the exclusivity and the uniqueness of
luxury brand is not present in a high street brands (Peng 2012)
Bargaining power of customers and how it’s shifted during recession
Suppliers bargaining power is an another aspect of the porter’s 5 forces. When discussing
bargaining power, some of the areas to look at are, number of suppliers relative to buyer, level of
dependence on a supplier, effective substitutes and switching cost of suppliers are important. It is
well noted that number of craftsmen available in the industry is steady decreasing and new
entrance to become skilled workers are painfully slow. This is having an adverse effect on the
buyers. In 1920 there were over 10,000 skilled couture level embroiders were in France and
today that number has reduced to just 200. Most of the suppliers are specializing in catering to
buyers and switching cost would be extremely high (Chapman 2015)
When studying patterns of buying behavior during a time of recession or financial meltdown,
it becomes clear that consumers thinking and reasoning patterns are clearly on display. Segment
of customers tend to scale down on the buying frequency and the amount of money spent on the
products. However, portion of customers actually increase the amount spent on luxury items.
8. A Study to understand the management strategy of luxury brands during the recession 8
This behavior is fueled by the notion that over time luxury goods vintage value tend to appreciate
as well as instead of buying many low cost items, spending money on few luxury goods is a
better deal (Peng 2012)
Impact of competition and how discounting used as a tool
Rivalry among the existing competitors another element of the 5 forces. While discussing
the competition, we need to look at the competitive structure, demand conditions and exit
barriers. Luxury goods market is dominated by 3 conglomerates. Those are, LVMH, Gucci group
& Burberry. Rivalry among the 3 companies are relatively low as they each have their own
identity. However, to capture the new customers who are coming in to the market, all companies
working hard. Immerging markets such as China, Hong Kong, Middle east, Korea are important
for the growth of the individual company hence competition is intense (Solakiri 2015)
It is well documented that firms in luxury product category do not engage in price wars. This
is by default as if a company start to discount an item in order to accelerate the sales, this would
inevitably result in negative growth in medium to long term. Luxury goods market cater for
customer’s emotional needs and they have a reputation to uphold. At any time, the items they use
end up being on sales, this would affect the customer confidence and brand loyalty. Hence it is
paramount that any cost firms have to refrain from discounting the items once sold for a certain
price range (Bill 2012)
9. A Study to understand the management strategy of luxury brands during the recession 9
Summery
Luxury goods market remains one of the best performing market segments in the world. It is
not immune to global financial events yet it has a remarkable ability to bounce back in relatively
short period of time. This is mainly due to the fact that customers who are buying the products
coming from the wealthy backgrounds and products and services are catering to customers’
emotional needs more than the practical use of the items. The companies engaged in the sector
understand the buyers buying behaviors and the reasons to buy hence they continue to come up
with products which are high in value and found in most exclusive part of the cities. As a
cardinal rule most of the firm in the sector do not engage in discounting methods as this would
destroy the brand image over time.
10. A Study to understand the management strategy of luxury brands during the recession 10
Reference
Alfino, M (2014). Critical essays on consumer culture. New York, Pearson
Bill, G. (2012). Storm Warning: How Global Recessions and Terrorism affect the Trade
NY, Pearson
Bazerman, H (2012). Judgement in managerial decision making. New York, Pearson
Chapman, C (2015). R for marketing research and analytics, Pearson, NY
Edwin, R. (2012). The bling dynasty: Why the reign of Chinese luxury shoppers has just only
begun. New York, McMillan
Malhotra, N. (2010). Marketing Research: An applied orientation. San Francisco, Pearson
Peng, M. (2012). Global Strategy. New York, South-Western
Solakari, H (2015) Effect of recession on luxury goods market. Irwin, McGraw-Hill