A Review Of Valentino Marketing Essay

In a time when enterprises are fighting to survive and the market is uncertainty and instability for any company, we see the exponential interest towards luxury products and services, but this interest is not only about profitability and brand awareness; it is about structuring “Valentino” products and services offered within the spectrum of luxury.

Today companies rely on traditional marketing models such as the 7Ps model but, as will be seen, these are argued to be insufficient for luxury products and especially inaccessible luxury products and services. Hence I propose other marketing models which take into account the identity and position of luxury products in general and the hypothetic position of Valentino in the Indian market. This includes an exposition of ideas, tangibles or intangibles and a complete understanding where the luxury product is offering and the important role Valentino SpA plays in the status of luxury.

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The intent of this document is to promote Valentino as a classical example of luxury fashion rather than explain the fashion industry specific.

2. BACKGROUND

For over forty years Valentino Garavani, known to all simply as Valentino, has been one of the most prominent names in fashion, creating some of the world’s most elegant eveningwear and classic designs.

Since Valentino released his first line in 1959, Garavani Valentino has made a significant impact on the fashion industry. In the 60’s Valentino open his first boutique in Paris, introduced his signature ‘Red Valentino’ and launched its now famous ‘V’ label. In 1970 he launched his first ready-to-wear line, with boutiques following in Rome and N.Y.

In 1986 he won the highest decoration possible in Italy, the Calvaliere di Gran Croce. In 1991, Valentino celebrated his “Thirty years of fashion” accompanied by famous celebrities like Elizabeth Taylor. In 1998, Valentino and his business partner Giancarlo Giammeti sold their fashion empire for £211 million.

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In summer of 2008 Valentino shown his last collection and celebrated his 45th anniversary. He is a true fashion icon of the 20th century and has helped shape the image of men and women of the 21st century.

Currently Valentino’s new creative directors are Maria Grazia Chiuri and Pier Paolo Piccioli.

Valentino also is one of the most popular brands in the Valentino Fashion Group S.p.A (VFG).

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The VFG S.p.A plays a vital role in the world of fashion and luxury, with a rich and well-diversified portfolio of products which includes clothing, accessories, and footwear for men and women.

In the world of fashion and luxury, few players have gained the international fame the VFG S.p.A has achieved. It offers an array of complementary brands characterized by a consolidated global presence, excellent brand awareness, and strong product recognition as:

* Valentino, featuring the prestigious brands Valentino (Couture and ready-to-wear) which products rates are between 24.180 Rs. and 558.000 Rs. , Valentino Garavani (Bags, shoes and accessories) which products rates are between 9.920 Rs. and 347.200 Rs. , Valentino Roma (ready-to-wear) which products rates are between and Red Valentino (ready-to-wear) which products rates are between 6.076Rs and 40.920 Rs .

* Licensed brands MCS Marlboro Classics and M Missoni, in addition to its own brands Lebole, Oxon, and Portrait.

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Until 23 December 2009 there was three business units, which even included Hugo Boss which was relinquished on that date and therefore no longer a part of the consolidated group.

Moreover VFG S.p.A owns 45% of US brand Proenza Schouler .

The VFG S.p.A operates in over 110 countries, with more than 1,600 single-brand boutiques and 433 directly-managed shops.

The Group’s consolidated revenue for the 2008 financial year is approximately 2.206,9 million. More than 13.081 employees work in directly controlled companies and branches spread across 28 countries.

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Over the years, VFG focus has changed. The group now approaches the industry with a fashion-driven focus. It is more interested in offering proposals charged with irresistible value and original designs unlike any other company in the industry to integrate an extensive variety of products and trademarks by converging consumer unique and satisfaction.

VFG serves steadily focusing on demands of an unwaveringly evolving cosmopolite consumer.

VFG pretends to be the fashion world’s protagonist in the fashion and luxury sectors ensuring the highest quality standards in all market segments its serve pursuing excellence and innovation.

3. PESTLE: ANALYSIS STANDS FOR VALENTINO.

OLITICAL: With the end of quota regime on January 1 of 2005, the prospects for Indian fashion industry look upbeat.

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Terror acts may affect trade negatively.

CONOMICAL: Due to the India economy growth, consumer confidence is high and people like to spend on luxury items.

Higher increased of mortgages may affect consumers’ disposable incomes.

India has among lowest labor costs in the world.

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OCIAL: Indian older women (35+) tend to wear more conservative than younger.

Indian women may see Valentino as something to be worn on special occasion.

Valentino will offer distinction and exclusivity.

ECHNOLOGICAL: The growth who lives younger lifestyles presents a further opportunity to manufacturers technological.

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Growing popularity of social networking encourages companies advertise and sale on line.

The strength of India fashion industry rests on strong raw material availability and on the large number of skilled human resources.

NVIRONMENTAL: The EPA, considers many textile (polyester) manufacturing facilities to be hazardous waste generators.

USDA considers cotton has a significant environment footprint because the use of pesticides.

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EGAL: Inspectors have found clothes manufactured from some countries (included India) which widespread health risks and fraud from luxury brands.

Possible changes in the marketing strategies.

Manufactured process and product quality law could affect.

4. SWOT ANALYSIS: VALENTINO STRATEGIC PLANING METHOD.

TRENGTHS: VFG S.p.A. has strong luxury brand recognition worldwide.

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Celebrities endorse Valentino on the Red carpet events and weddings.

Product price is competing with its’ competitors.

Existing consumers target group.

Products available on-line (www.store.valentino.com)

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EAKNESS: No strong/massive campaigns.

Prices are higher than other brands present already in India.

Prices follow the same rates worldwide.

PPOTUNITIES: Introduce a limited edition line for clothing & perfumes.

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Raise Brand awareness across the Indian consumer market.

Get collaboration with celebrities for limited edition collections.

Serve as a sponsor in prestigious events (Miss Universe).

HREATS: Indian population is not so aware about Valentino.

Competitors as Dior or Louis Vuitton are already positioned in India.

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Indian luxury fashion designers are getting international recognition.

Global economic downturn.

5. ANSOFF’ S MATRIX: VALENTINO GROWTH STRATEGY.

6. MARKETING MIX

PRODUCT: Valentino offers to consumers unique, original designs unlike any other company in the industry (because of the brand history) which includes luxury brands as Valentino Garavani (women’s foot wear, bags, small fur items, accessories) and Red Valentino (luxury women’s wear), in addition perfumes and eyewear.

PRICE:

Valentino Garavani: 9.920 Rs. – 86.800 Rs.

Red Valentino: 6.076 Rs. – 40.920 Rs.

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Perfumes: 2.480 Rs. – 5.490 Rs.

Eyewear: 11.780 Rs. – 18.290 Rs.

Valentino is target to exclusive women; prices are high but are value for quality, luxury, and exclusivity.

PLACE: Valentino as a luxury fashion brand must be located in India’s luxury shopping destination DLF Emporio Mall in Vasant Kunj, New Delhi.

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PROMOTION: Valentino must be placed its ads in renamed fashion magazines like Vogue. In coordination with Valentino’s press director organize fashion shows and events to create awareness.

PROCESS: Valentino is focus on the demands of an unwaveringly evolving cosmopolite consumer hence Valentino should come up with customer service centre, Valentino Boutique, Valentino VIP list. All these facts made with excellence and innovation will develop a loyal relation between the customer and the brand.

PHYSICAL EVIDENCE: Having Valentino Boutique at the strategic location and associating itself with Bollywood actors and movies and sponsoring high class events will insurance the top publicity possible.

PEOPLE: From assistants to directors constitute the image of the brand. Hence establish an on-going dialogue between passion, experience, and knowledge will be a must to develop loyal relations.

7. PORTER’S 5 FORCES: VALENTINO INDUSTRY ANALYSIS AND BUSINESS STRATEGY.

8. CONCLUSION

This Marketing Audit is about how Valentino as brand has the potential to lead the luxury industry in India. The analytical tools used in this document have been developed to ensure that Valentino stays ‘in front of the pack’ in case that it has to battle with the areas of mass and intermediate luxury.

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This document is hoped that the reader will now have a clearer picture of what Valentino and luxury is and how difficult and important it is to manage a luxury enterprise and its brand.

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