Elie Saab is a luxury fashion house known for haute couture designs. In addition to its core haute couture line, it offers ready-to-wear, accessories, and wedding dresses. Over time, Elie Saab has expanded through strategic partnerships, licensing agreements, and third-party distribution while maintaining its brand image of high-end, customized designs. The report recommends Elie Saab continue growing in new markets through these partnerships and distribution methods to attract new consumers while preserving its focus on haute couture and high-net-worth clientele.

1. Written Assignment 2
1. What is ES’s core business? Discuss the “total product view” (i.e. core, actual and augmented)?
Their core business is Haute Couture but they have a total of four primary products lines: Haute
Couture, Ready-To-Wear, Accessories, and Wedding Dresses.
On top of these main four product lines “ES formed a strategic alliance with Tatweer (Dubai
Properties) to develop signature hotels” (Shuayto & Khayyal, 2012, p.4). Formed a 10-year fragrance and
cosmetics license contract with Beaute Prestige International (BPI) and created a signature fragrance. ES
later on signed with Weyves International Ltd. to work on the creation of three mega yachts.
2. What is Elie Saab’s competitive advantage?
Their competitive advantage is in their ultimate personalized experience they provide to their
Haute Couture brand customers. This is done though the personality and know-how of the designer Elie
Saab who really applies the principles of Haute Couture.
3. In what stage of the product life cycle is the company located? How has the company’s
positioning and differentiation strategy changed over time?
The product life cycle for their Haute Couture is in the maturity stage since Elie Saab has great
expertise in this product line but sales for this product tend to be stagnating. The product life cycle for
their Ready-to-Wear line is in the growth stage since sales in constant progression.
At first, Elie Saab focused exclusively on Haute Couture and exceptional custom-made clothing
for his super wealthy customers. This followed with the launch of Ready-to-Wear clothing line that
extending the company portfolio. With more affordable and easier to produce clothing and accessory line
this lead to a greater return on investments and turnover.
4. What is the company’s current entry strategy? Is this strategy consistent with the company’s
vision? List the pros and cons for each entry mode?
Current ES Entry Strategy consists of Licensing, Partnerships, 3rd Party Distribution, and
Flagship Stores. Elie Saab’s company goal is to “attract, select and maintain customers who place
significance on high-end, one-of-a-kind designs made from the finest fabrics and materials” (Shuayto &
Khayyal, 2012, p.1). By being careful in their selection of which companies they enter the market with
they will be able to keep with the company’s vision.
Licensing minimizes the risk and investment costs, gets the product to the market quicker, helps
to circumvent trade barriers and provides high return on investments. The downside to licensing is that
there is lack of control over the assets used, licensing can lead to knowledge spillover, and the licensing
period is limited.
Partnerships help companies overcome ownership restrictions, help with cultural distance, allows
for combining resources of two companies, allows for potential learning, and cost less investment. The
downside to partnerships is that they are difficult to manage, there is dilution of control, and there is a
greater risk of losing the initial investment.
Third-party distribution minimizes the risk and investment costs, gets the product to the market
quicker, maximizes economies of scale, and uses existing facilities. The downside to third-party
distribution is that there are trade barrier and tariff cost, transportation costs, limited access to local
information and the third party controls the product mix.

2. Flagship stores or company-owned stores gives a company greater knowledge of the local market
can better apply specialized skills, minimizes knowledge spillover and gives more control over products.
The downside to flagship stores or company-owned stores is that there is a higher risk involved than using
the other modes of entry, it requires more resources and commitment, and it may be more difficult to
manage the local resources.
5. Should ES target a new market? For example, should the company target the emerging
‘affordable luxury market?’ Explain, and be ready to support your answer?
Since Elie Saab insists on “staying true to its core of exclusivity by continuing to target the high-
end, super-wealthy market intentionally avoiding the new and emerging affordable luxury market, which
consisted of the affluent middle class” (Shuayto & Khayyal, 2012, p.2). It would seem like Elie Saab is
bent on not targeting the affordable luxury market.
The market that Elie Saab should focus on is the world’s high-net-worth individuals (HNWI)
which according to the “World Wealth Report 2010, grew 17.1 percent to 10 million in 2009. Global
HNWI financial wealth also grew, posting a gain of 18.9 percent to $3.9 trillion. The star performer was
the Asia-Pacific region, in which the HNWI population rose 25.8 percent to 3 million, as HNWI wealth
surged 30.9 percent to $9.7 trillion. The report also indicated that North America remained the largest
home to HNWIs, with its 3.1 million HNWIs accounting for 31 percent of the global HNWI population”
(Shuayto & Khayyal, 2012, p. 2). So Elie Saab should focus on the HNWI in both North America and
Asia-Pacific since these are the main areas where their main focus of high-end luxury consumers is
located.
6. What are your overall recommendations for ES? What marketing mix strategy do you
recommend?
Elis Saab should continue to grow in new markets through partnerships, licensing and 3rd
Party
distribution. Elie Saab needs to look for partnerships that will attract new consumers in new markets.
Licensing give then a great opportunity to expand on the brand while utilizing the expertise of others in
different industries and will help them to build brand awareness. By using third party distribution Elie
Saab lowers their risk in expanding into a new market, this also serves as a measuring stick to seeing the
potential of a new market and help building brand awareness and credibility.
Overall, Elie Saab needs to maintain their brand image of “High-end, one-of-a-kind designs made
from the finest fabrics and materials” (Shuayto & Khayyal, 2012, p.1) and keep providing high quality
customer service. Haute Couture has been and must continue to be the core and soul of Elie Saab’s
business. An increase in promotional spending on new media will help to grow the brand along with
making full use of the celebrity effect.
Reference
Shuayto, N. & Khayyal, H. (2012). Elie Saab:Growth of a Global Luxury Brand. Richard Ivey School of
Business. W12092. Retrieved from
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