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Brand Project: Marketing strategy proposal for Anawhel, former Il était un Fil Luxury brands and Customer’s experience, KEDGE Business School, Professor Noel ALBERT Felipe Rodrigues Afera Abu LI Bowen SHI Yu SHI Yu S U M M A R Y C U R R E N T S T R A T E G Y A N A L Y S I S 1. Introduction and history 2. Mission and Objectives 3. Marketing Strategy a. Target customers b. Awareness c. Unique Advantages d. Communication with Clients e. Production and distribution f. Pricing 4. Brand Equity 5. Strengths and Weaknesses 6. Industry Analysis Current Strategy Analysis IL ETAIT UN FIL is a leather goods luxury brand born in the south of France in 2014, which has travel as the main topics. The company offers handbag and accessory collections made as craftsmanship in an atelier in Marseille. The company intends to provide a perfect balance between style, functionality, and practicality to everyday life smart partners that combine technology with beautiful leather crafted in the colorful shades of Provence. The raw materials, leathers, are carefully chosen in France and Italy, and the handbags collections are the mirror of French “savoir-faire” IL ETAIT UN FIL translates into English to something close to ‘Once Upon A Thread, which expresses its designer’s philosophy: that life is a journey meant to be lived fully, composed of traveling, diversity and rich experiences. The founder, Naouel BEKKAIE, holds a world journey into the fashion world, she is well known for her authenticity and passion for fashion and design. There is an absolute intensity in her way of speaking that reveals her as an artist who is ambitious wise and very committed to her values. Before opening the company, she first had a successful 10-year career working for premier brands. Naouel felt something pulling her away from her hometown of Marseille, and toward Asia where she discovered a new passion for modern technologies. Back in France, she decided to launch a new generation leather goods brand, mixing French savoir-faire and technology. She was supported by talented French artisans to create high-quality collections. With its founder’s shared love for traveling, encountering new cultures and meeting new people. IL ETAIT UN FIL hopes to be a path for women to world peace and unity as it broadens their horizons and bringing them closer. 1. Introduction and history “Stylish, Positive and Practical” The company aims to offer the best quality materials and designs that can be found, the designer is always seeking for something new and following the tendencies. Quality is the primary concern of the company, that is why its desire to expand its business first in France, where it is easier to manage due to geographic circumstances. However, the company is also open to international expansion if it is convenient. This expansion also includes new products beyond bags and accessories as shoes and sandals, which will be launched in this summer with two lines. Furthermore, the products are sold in multi-brand stores, department stores, and in its website, the aims are to expand the company, by entering big stores and in other online retail sites. Only when the company is famous enough, the founder will open its exclusive store, but now it is not the moment to this. Moreover, the company desire to improve the awareness of the brand by celebrity endorsement and beautiful photography, it has not already done yet due to some financial difficulties. Finally, the primary goal of the owner and president is to enhance brand equity company to sell it in the future when it reach the peak of value. 2. Mission and Objectives “A perfect balance between style, functionality and practicality to a travel and dynamic routine.” Il était un fil bag “When my company reach the value peak, I will sell it.” By Naouel BEKKAIE Marketing strategy is a variety of techniques that allow an organization to direct its resources towards the best opportunities regarding increasing sales and achieving sustainable advantage over the competition. A company’s marketing strategy consists of long- term activities that contribute towards developing strong brand awareness. (Steven P. Schnaars, 1997). In this proposal, we focus only in the main components necessary to understand the current strategy of the company. a. Target customers The purpose of IL ETAIT UN FIL is to bring handbag and accessory collections with a perfect balance between style, functionality and practicality to a travel and dynamic routine. Naouel BEKKAIE, the brand founder, through her journey into the fashion world, identified a desire for smart, beautiful, stylish and small bags. Those collections are made for everyday life smart partners who are a combination of technology in beautiful leather crafted and colorful shades of Provence. The brand intends to reach customers who have a passion for traveling, encountering new cultures and meeting new people and have a dynamic lifestyle, it means, they are always on moving. In other words, the Brand intends to reach consumers who are 3. Marketing Strategy Page 3 Il était un fil In other words, the Brand intends to reach consumers who are travelers and has a “nomad life”, people who believe that the life is a journey and need to be lived fully of traveling, diversity and rich experiences, carrying on a smart and soft bag. b. Awareness The goal of any business is to gain more trust with current clients and achieve better brand awareness among the target audience. IL ETAIT UN FIL uses basically, digital marketing to enhance its brand awareness. Instagram is the principal tool used by the company where they show the product and its positioning; there are many pictures of travel, and soft daily life, it also indicates beauty and elegance. The company also use celebrity endorsement to extent the awareness. IL ETAIT UN FIL has a website where consumers can buy products (Only in the French version), there is a description of the product, the history of the company, including its principal features. Furthermore, the company has a French name which is something poetical, but it is hard to remember and pronounce by American or Japanese customers. The most successful brand name followed a human, for example, Christian Dior, Chanel and Marc Jacob. Thus, even though the name has a special meaning for French customers, it is not adequate for internationalization purposes, and it makes more difficult to enhance the awareness of the brand. Finally, the company has some financial problems which resulted in little investments in Brand awareness, more celebrity endorsers are necessary, and they also need to invest in other types of media, those problem result in little consistency in marketing initiatives. b. Uniqueness The company tries to add more value than its competition through its unique concept which combines beauty and functionality; the brand hopes to differentiate itself from the competitors. Its unique advantages focus on five main aspects: production, raw material, diversified design, technology, and originality. Production, the bags are marked for be craftsmanship in Provence, which associates the reliability and intangible values associated to this region, such as high quality, very stylish and well made, sharped in beautiful and “happy” colors. The raw materials, primarily leathers, are carefully chosen in France and Italy, two places that are famous for having high quality and sophisticated materials.IL ETAIT UN FIL is very concerned about quality; the bags are entirely handcrafted to produce sleek cuts, paying attention to details and accuracy of finishing. The brand intends to show that the products are very specials and carefully created. The design of the bag follows the current tendencies and offers a variety of models and colors. The bags, pouches, and wickers come in a wide range of sizes, styles, and colors, from pure black and metallic shades to bright yellow Red, white and blue. The colorful is to express happiness according to the founder. This variety of colors are offered to make sure that customers will find something that appeals to their unique sense of style. Page 4 Il était un fil Technology is also essential for IL ETAIT UN FIL, it offers a small and smart bag, which is easy to carry on and brings a little technological surprise, a power bank for cell phones. This little surprise is one of the concept of the brand, it brings safety for consumers that now can keep connected even though they are always on moving. They need cell phones to take pictures, to search for places to go and many essentials activities. Thus, we all know, cell phones are almost a vital part of the travelers’ life they also feel disappointed and even desperate when their cell phone battery get off, the company see this problem and offer an efficient solution to this problem. Finally, its originality is remarkable. Made on the edge of the Mediterranean Sea at the heart of Provence, IL ETAIT UN FIL the atelier is enjoying a privileged environment to create bold and energetic collections. Its savoir-faire appears as a legacy after many years spent near talented creators, artisans, and recognized by French Fashion Houses. Respect for tradition, generosity, and integrity are the central values of the company. d. Communication with Clients IL ETAIT UN FIL communication looks to promoting its brand identity, which includes logos, typography, colors, packaging, and messaging. The principal feelings provoked by the company are happiness, comfort, and safety. It intends to be assessed as beauty, comfortable, practical, and functional products. When consumers see the product, they should feel happiness due to the beautiful and colorful design of the bags. However, the company is not communicating those feeling consistently; the messages are not enough integrated into enhancing its communication goals. It participated in some fashion week, but few ones without consistency, which makes challenging to reaffirm the awareness of the company. Finally, there is no marketing communication strategy; the design is not remarkable which makes difficult to identify the brand. The logo represents thunder, giving an image of a perfect combination of functionalism and utility, but it is not easy identified in the bags. The communication efforts are not well connected and do not show a complete and progressive story; each post on Instagram is independent of the others, and there is no clear storytelling. Page 5 Il était un fil e. Production and distribution The company is quite new, it has only six collections, but it is growing fast, it can produce 1500 products and makes 120.000 euros in revenue an ear. Even though it is a significant level of production, the company keeps making its products as craftsmanship to show a special care for them, in this market handcraft means luxury. Two staffs are producing the bags all the time and one who works on weekends and nights. All production happens in an atelier located in the city center of Marseille in Provence, that atelier does not sell products daily, it only opens for some events or special circumstances, and they are working at full capacity. The bags are sold 95% in France through multi-brand stores (about 40 retailers) and online only on its website. The company focuses on the French market, since that it is easy to manage and control the quality due to geographic and cultural factors. However, IL ETAIT UN FIL has some problem such little self-space in the stores due to the low recognition of the brand. Also, the English version of its website does not work well; consumers cannot buy online on this version. “Il était un fil was launched in 2014, and it has already been able to produce 1500 products and generate 120.000 euros a year with 4 workers” e. Pricing Pricing strategy is to offer an accessible luxury product, but the pricing is not analytically calculated; it is based on a comparison with the competitors’ price (mainly Everpurse from America and Mighty Purse from Australia) and production costs. Nevertheless, the company intends to keep an image of a luxury brand and, at the same time, maintain the product accessible by setting the price not so high; it generates an inevitable confusion in the positioning of the brand. The price range is from 150 to 500 euros for bags and accessories have a rice concentration of 145 to 200 euros. Page 6 Il était un fil Building a strong brand is the aim of almost all organizations. A valuable brand with relevant equity provides a base for many possible benefits to companies. Those benefits include greater customer loyalty, more favorable customer response to price fluctuations hence more significant margins. It also brings less vulnerability to competitive marketing actions and marketing crises, resulting in a higher trade or intermediary cooperation and support. Moreover, a strong brand leads to an increase in marketing communication effectiveness, and licensing and brand-extension opportunities (Keller, 2001). Due to all those reasons, and the aim of the owner, sell the brand, we decided to analyze the Brand Equity to identify points of improvements to the second part of this proposal. Customer-Based Brand Equity: CBBE MODEL Consumer-Brand Resonance. IL ETAIT UN FIL has moderate- high brand loyalty; there is still a long way to create a lasting and unalterable emotional relationship towards the brand that expresses a psychological closeness with it. The newly established brand has a little stimulus to generate a passion and a “Brand love,” not only the handbag is not an FMCG (less need for repurchase), but it also has no a universal recognition within the brand identity has yet to be fortified. There is no significant sense of community through social networks such as YouTube and Facebook; the engagement is not active enough to contribute considerably to the Brand Equity of the company. 4. Brand Equity “Love is like the wind, we never know where it will come from” Page 7 Il était un fil Consumer-Brand Resonance IL ETAIT UN FIL has moderate-high brand loyalty; there is still a long way to go to create a lasting and unalterable emotional relationship towards the brand that expresses a psychological closeness with it. The newly established brand has a little stimulus to generate a passion and a “Brand love,” not only the handbag is not an FMCG (less need for repurchase), but it also has a universal recognition within the brand identity has yet to be fortified. There is no significant sense of community through social networks such as Youtube and Facebook; the engagement is not active enough to contribute considerably to the Brand Equity of the company. Consumer Judgements The brand is judged as an entirely handcrafted brand with excellent materials. It is also practical and functional, equipped with the portable power bank. However, consumers not onlyknow little about the quality of the power bank, but they also know little about the quality of the bags, because it is a new brand which has invested little in communication up to now. Consumer Feelings IL ETAIT UN FIL communicates lifestyle with a feeling of comforts, freedom, and style, with the bag, consumers are not only ready and comfort to travel, but they also have social approval for wear a modern, unique, unconventional and fashion bag, for an affordable price. Brand Performance The primary characteristics are leather goods, design sense of seashore: embrace craftsmanship, bold and energetic collections; diversity colorful shades of Provence. Its secondary features are practical utility; there is a power bank for cellphones inside the handbags, which friendly to the travelers and commuters. Brand Imagery The primary target of IL ETAIT UN FIL is a woman with innovative consuming habits, loyalty and transformation cost: moderate difficulty. The products are mostly purchased for self-use. They are distributed mainly in Western Europe: France, Corse, Monaco, Spain, Ile de la reunion, Swiss and minor focused on the marine countries such as Asia and the Caribbean Sea: Japan and Barbade. The most significant concentration is in France, 17 sell points. The branding personality is based on French culture and in a solid production. Entirely handcrafted in its atelier and bold with energetic collections, the handbag collections remain true to bringing exceptional materials from France and Italy. Sleek cuts, attention to detail, hand sewing and accuracy of finishing are our daily basis of work. It is marked by the style savoir-faire, which appears as a legacy after many years spent near talented creators, artisans, and recognized by French Fashion Houses. Respect for tradition, generosity, and integrity are our central values. IL ETAIT UN FIL experienced some little advertising channels beyond its Instagram, but mainly focusing on the fashion magazines. Page 8 Il était un fil According to Kapferer (1996), there are six essential elements considered as efficient tools for building brand identity. Those elements involve customers’ experience with the brand and its history that determine the way your customers’ think about the brand. Moreover, customers will attentively look for some clues about what the brand is mostly known. However, those features would only come into effect when a brand communicates with consumers. Additionally, a brand will be considered reliable if it can incorporate all elements into an effective effort to avail a concise, transparent and appealing brand identity. We decided thus, use this model because it covey all essential aspects that need to be analyzed to understand the current situation of the company in terms of marketing strategy and mix de marketing, it made the analysis more structured, focused and organized. Brand Salience or brand identity Self-image Self-image stands for a mirror held by the targeted group itself. It is about how do consumers perceive themselves when engaging with our brand. Then, from the perspective of consumer, there are some key words to describe the common characters of them such as, stylish, experienced, live a positive life, proposing happiness and so on. Culture The culture of the brand establishes link between brand organizations. That identifies what are the values or guiding principles the brand has. IL ETAIT UN FIL has respect of tradition, generosity and integrity as its core values. Page 9 Il était un fil Personality Personality stands for the character of the brand. A young woman, fashionable and free who life is a journey meant to be lived fully, composed of traveling, diversity and rich experiences. Relationship Signifies the relationship between the customers’ and the brand. The brand accompanies its customers in everyday life with a combination of technology and beautiful and fashioned leather and colors. The products bring happiness to travel and daily journey via a wide variety of styles and colors. Reflection This aspect signifies the reference direct to the stereotypical consumer of the brand. IL ETAIT UN FIL customers are young ladies who traveling or spend vacation outdoors, people with their own unique sense of style. Physique The basic of the brand’s identity is its Physique. The physical characteristics and the primary objective of the product or service create some specific images, ideas and emotions among the consumers. IL ETAIT UN FIL provoke feelings such as happiness, comfort, and safety, which is a result of the brand assessed as beauty, comfortable, practical, and functional. The colorful design of the bags also plays a role in make customers happy. Strengths and Weaknesses Strengths and weaknesses analyses are usually make by using a SWOT analysis. However, it is not the focus to identify opportunities and threats. Also, the strengths and weaknesses were identified in the previous section, we do not need to go deeper. Therefore, this section summarizes the main strengths and weaknesses of IL ETAIT UN FIL. Strengths Geographical position and cultural association favorable. The region of Provence, in France, are well known for their qualities, design, and style around the world, there is an intrinsic reliably reputation for products made in this region. Then, the fact that the company is localized in Provence bring some positive associations and improve the reliability of the product, bringing some positive renown. High-quality product. IL ETAIT UN FIL is very concerned about quality, and since its foundation, it has been offering high-quality product consistently. Its raw materials are well selected and come from a region famous for providing luxury materials. Moreover, the company has a rigorous production control to ensure the quality. Page 10 Il était un fil Weaknesses Financial Situation unfavorable. The company has no external investors and it is limited to its funds and the owner funds, which makes hard to invest in communication or expand the production. Little bargain power against suppliers. IL ETAIT UN FIL is still a small company, which means that it has little bargain power to buy raw materials and hence it will always pay more to get those materials. Many competitors with similar prices and more awareness in the market. There are a considerable number of competitors that have more money to invest and offer substitute products with similar prices. Also, the company is new on the market and little known by the customers. Absence of marketing communication strategy. IL ETAIT UN FIL has no marketing communication strategy, its communication is not well-integrated and it has no clear storytelling in its messages. Name difficult to remember in International markets. Even though IL ETAIT UN FIL is a French poetical name, it is a name difficult to pronounce and to remember for the foreign market, making the increase of awareness more difficult. Create by Porter (1979), Porter's Five Forces is a simple but powerful tool for understanding the competitiveness of the business environment, and for identifying the strategy's potential profitability. Competitive Rivalry. Even though there is no direct competition for IL ETAIT UN FIL products in France (95% of its sales), the nature of this industry is very competitive, companies need to innovate and bring something new all the time to face with their competition. Supplier Power. The raw materials needed for the company are produced mainlyin large scale for huge producers, which will give them, more bargain power and some materials are unique and difficult to find substitutes. Buyer Power. IL ETAIT UN FIL sells its product for retailers, according to the owner, most of them are huge and buy in massive quantities, it allows them to bargain for slower prices. Threat of Substitution. Even though luxury bag and accessories can be easily substitutes, the company strategy consist in differentiation, which gives them a certain bargain power for the company, since that its products are unique with high-quality, and the brand equity brings some positive benefits. Industry Analysis 5 Porter’s Forces Page 11 Il était un fil Threat of New Entry. Luxury bags industry are based on differentiation, which means that a new entry need to have specific knowledge about design and raw materials, which are not easy and cheap to get. There are also, huge economies of scale and brand equity differentiation play a vital role in this industry, all those factors favor large and old companies.
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