INDUSTRY ANALYSIS OF VOGUE FASHION MAGAZINE

Post Graduate Programme in Management

By-GROUP NO 12 y y y y y Niharika walia Pankaj joshi Syed-inan-ul-arsh Shweta mittal Arun kumar mourya Submitted to: Prof Veeresh Sharma

Indus World School of Business Greater Noida Date- 07/03/2011

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TABLE OF CONTENTS
ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE MATERIALS AND METHODS VISION AND MISSION OF THE COMPANY EXTERNAL ANALYSIS:  Trends in the environment

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Demographics  Physcographics  Behavioral 
 Market segments  PEST Analysis  Porters five forces model  External Factor Evaluation Matrix
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Competitors analysis Industry Stage

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Internal Resource Based View  Core competency  VRIO framework  SWOT Analysis

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Vogue Past and Present Strategy Marketing Strategy Organizational Structure Recommendations Conclusions References

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We would also thank him for taking out time to interact and assist us on various problems faced during the process of completion.ACKNOWLEDGEMENT On the completion of our project we would like to thank our faculty Prof. 4 . Veeresh Sharma for giving us the opportunity to work on a project that was challenging as well as completely insightful towards the subject.

economic. publishing and consulting. Certain tools used for it are PEST analysis and Potters Five Forces model. We believe that first mover advantage can be achieved despite the competitors are coming up with updated version of the magazine as their brand image is still by price and style only. Today the consumer is more aware and more demanding with the development of media like television and Internet and Vogue features itself to be unique and innovative every time and this is the main reason which makes it stand out of the crowd as well as be a leader among the other global fashion magazines. Vogue has enough opportunity to add some exciting features in the magazine that will finally target its end users. legal. manufacturing. political. 5 . Weakness. Opportunities and Threats faced by the firm. Europe and now the production is abundant in growing economies like India. accessories and luxury goods market is in an ever increasing mode. VRIO Framework and an analysis of Strengths. the fashion industry generates over $1. This is the main reason of huge competition in this industry. social. California (Los Angeles and San Francisco). In New York itself. Vogue features famous designers and models to ensure that the magazine remains forefront to its target consumers. technological and global environment. thus fashion publishing is an effective business to be in. over $250 billion is spent on fashion (including accessories) in the United States and over $20 billion in revenue is generated annually. The report covers the External Analysis of Vogue by explaining the demographics.7 billion tax revenue with $9 billion in total wages. distribution. Vogue fashion magazine has a good chance of success even though the market is highly competitive. whilst being backed up throughout with the core competency of the marketing. marketing. Publishing by a mode of magazine is an important and quite sustainable business as it is dependent on an industry such as fashion which is ever growing. Miami. Each year. Fashion industry employers are located just about everywhere but most are concentrated in New York City. London. China and Japan. and Italy. Over 4 million people are employed in this industry which includes the following areas: design. resource based view. retailing.Executive Summary Fashion Industry which covers the global apparel. Paris. However this advantage is not sustainable in the long term and will be lost if the product is not continuously updated with new features from time to time. advertising. Vogue is the leading fashion magazine in the world in advertising revenue and circulation. Thereafter it is progressed by the internal analysis covering the core competencies of Vogue. US. Vogue magazine can be successful by creating new markets in the fashion magazine industry and using the recommendation that have been discussed. communications.

their strategies and market strength. In the end certain recommendation as well as conclusion to the report is provided. 6 .The report also talks about the competitors.

putting fashion in the context of the larger world we live in. two trade publications and twentyseven websites that garner international acclaim and unparalleled consumer engagement. operates in 24 countries by being a world leader in exceptional content creation.INTRODUCTION COMPANY BACKGROUND Vogue was founded as a bimonthly publication by Arthur Baldwin Turnure in 1892. In India. inspiring and challenging them to see things differently. Besides generating awareness about contemporary fashion. As of 2007. in both themselves and the world. who leads and inspires us. a division of Advance Publications. the magazine was banking on the increasing number of affluent and fashion conscious citizens in India. listen to. Over the years Vogue entered different countries across the globe and attained the status of a fashion bible. British edition and Men¶s Vogue . Condé Nast publishes eighteen consumer magazines. watch. Condé Nast picked it up and slowly began growing the publication. 7 . Its launch issue captured Indian celebrities and their style secrets through which Vogue tried to establish its position as a high-end fashion magazine in India. Condé Nast. The current chief in editor is Anna Wintouris. For millions of women each month. In 1973 it became a monthly publication and underwent extensive editorial and stylistic changes to respond to changes in the lifestyles of its target audience. It has other publications by the nameVogue. and the influences of politics and cultural ideas on society and lifestyles. For 118 years. 1960 was the era when the magazine began to appeal the youth focusing more on contemporary fashion and editorial features openly discussing sexuality. In the United States. Vogue has been America's cultural barometer.how we dress. Vogue is the eye of the culture. the magazine also focussed on capturing the changing roles of women and men in society. Vogue was highly optimistic about its success in India due to a growing Indian economy since the early 2000s. When he died in 1909. what we eat. socialize. Vogue was launched in September 2007. live.

Analysing the core competencies of the firm its strengths and weakness vis-s-vis the environment and its competitors.OBJECTIVE OF THE REPORT Objective of the report is to study and evaluate the present position of the firm along with it make a thorough analysis of the external and internal environment of the organization. 8 . Focussing on the organizational structure and marketing strategies adopted by Vogue to succeed in the midst of ever growing competition both in national as well as in a global context.

accumulated by means of internet search engines as well as interviews and data from the newspapers.MATERIALS AND METHODS The project is entirely based on secondary research and the proposition is examined from the theoretical standpoint then empirically investigated using an existing database. articles. 9 . The report is based on data collected through Vogue magazines. reports and studies done.

Harper¶s Bazaar. Magazines are reinventing fashion in a more cultural or social context. and a selective.how we dress. in particular the women¶s sector is continually being challenged by the times. socialize. listen to. It is no longer enough to merely produce a commercial photo anymore. The general trend in the Women¶s magazine publishing is usually dominant with the practice wherein they capitalize on every woman¶s need to learn what is new quickly and where to find it by providing them with one easily digestible package. It vision is to give value to its readers by providing all valuable source of knowledge which it can deliver through its magazine. inspiring and challenging them to see things differently. watch. This has led to the growing trend of reworking the classic model of the fashion magazine. The big challenge today is to engage the modern woman. young women and to increase the number of their advertising pages. optimistic editorial eye. live. Vogue Australia. ³You have to tell more of a story. in both themselves and the world. From its beginnings to today.MISSION OF THE COMPANY For 118 years. The magazine industry. who leads and inspires us. what we eat. three central principles have set Vogue apart: a commitment to visual genius. They are always struggling with how to keep pace with the current trend and thus they always have to change. VISION OF THE COMPANY Vogue wants to become top recognised fashion brand amongst all the competitors that exist. and you have to supply more of a context or personality´ 10 . EXTERNAL ANALYSIS AND MARKET BASED VIEW TRENDS IN THE ENVIORNMENTS Vogue is ³A one stop shopping guide for a girls every whim´. These magazines have engaged in differing marketing strategies but have similar goals: to engage modern. especially young women. new consumers. and Marie Claire are considered to be high-fashion magazines which provide tailor made for an elite group of people wearing clothes that only an elite few could afford. putting fashion in the context of the larger world we live in. Vogue has been America¶s cultural barometer. investment in storytelling that puts women at the centre of the culture. Vogue is the eye of the culture.

Example for this. physiological. It is concerned with how the product is used. family size. income. These demographic variables are often used in marketing for three reasons: (1) they are easy to identify and measure (2) they are associated with the sale of many products and services (3) they are typically referred to in describing the audiences of advertising media so media buyers and others can easily pinpoint the desired market target. Vogue is in the market to provide women with the latest fashion tips. that there was a research carried out by vogue Australia to find out the behavioural aspect of people in Australia. Vogue competes with the information providers such as fellow publication houses. safety. self ± esteem and self ± actualisation. The typical psychological profile of readers of Vogue Australia are associated with characteristics of being young optimist. According to Maslow the needs can be divided into the following 5 areas. SHE. Cleo. the segments can be formed from the different needs of the consumers. entertainment news. education etc. and gossip. A market segment is a specific group of customers with unique customer needs. Marie Claire. Market Segments The industry in which Vogue is in this stream to provide information to its readers. purchase behaviours and identifying characteristics. Cosmopolitan and B on a global basis. tend to be interested in fashion and are recreation oriented1. having a look at me mentality and often socially aware. Market segmentation 11 . entertainment and gossip. Behavioural: This variable is the third major element that shapes the customer needs. radio. They also face somewhat indirect competition from all media types that provide information for the latest women¶s fashion. belongingness. With the aid of primary research. a conclusion was drawn that the potential consumers of Vogue Australia is most likely to be young females who have relatively few financial burdens. Harper¶s Bazaar. Psychographics: Under this category. TV. All those elements are likely to shape consumer needs of Vogue. and all sorts of information communication medium. Demographic factors are the most popular bases for segmenting customer groups. Market segmentation is the corner stone of a market-based strategy. movies. sex. newspaper. how much it is used and when it is used.DEMOGRAPHIC ENVIRONMENT Demographic: It consists of dividing the market into groups based on variables such as age. Its main competitors are InStyle. occupation.

Buyers are too numerous.opens the door to multiple market-based strategies and greater marketing efficiency. works part time. they usually are the fashion leaders in their environment. they hope that one day they would be just like the young female professionals. young and trendy. Different companies vary widely in their abilities to serve different segments of the market. earnings in the top 20% of the population. Young Professional Female: Age 25 ± 35. too widely scattered and too varied in their needs and buying practices. have tertiary education or higher. 12 . Trendy Middle-aged Women: Age 35 ± 45. usually in the managerial positions. affectionate fashion followers and trendy and they are usually opinion leaders who try new things and being admired by general female population for their achievements. usually had higher or tertiary education. Organizations that sell to consumer and business markets recognize that they cannot appeal to all buyers in those markets or at least not to all buyers in the same way. sometimes against superior competitors. most of this target segment is still at university. affectionate fashion followers and trendy. Rather than trying to compete in an entire market. usually belongs to higher end of the scale of the society most of them in the managerial positions or housewife of top income households. each company must identify the parts of the market that it can serve best. likes to look elegant. Vogue generally created the Market Segment with following three categories: Aspirers: Age 20 ± 25. they are fashion followers as well.

anti-trust laws. this also happened during World War II. These tend to reduce the potential profit of firms. tax programs. minimum wage legislation. The profitability of the publication houses decreased as a consequence of the increase in interest rate. This also includes supplier function.S. customer function. 13 . the countries hit by global recession and thus the increase in interest rate had impacts on the purchasing power of the households or individuals. UK and Brazil. The political situation of Vogue Australia is reasonably stable. ECONOMIC: Economic factors comprise of factors affecting the Vogue company are: (depending upon its region of operation) y y Level of disposable income Propensity of people to spend Certain factors that affected the company were the magazine's number of subscriptions surged during the Depression.POLITICAL. pricing policies and pollution. Operations for the publishing houses of Vogue Australia. which has ultimately led to even more fierce competition for the share of the consumer expenditure experienced by the magazine sector. though the market has not started getting better but it became difficult in the recession era. It includes factors such as fair trade decisions. SOCIAL AND TECHNOLOGICAL (PEST ANALYSIS) POLITICAL Environment: Political factors include the legal and regulating parameters within which the firm operates. are such that the media has the rights to publish anything that they wish to thereby. The exchange of information from the publishers to the public facilitates media to enjoy freedom. which gives the liberty to the publishers to release information that might be controversial or even censored. But in Germany and France the extent of freedom of speech is limited not to bring anything censor in public that would incite sexual orientation or sexual crime. With the increased interest rates. consumers started practicing saving more and consuming less. ECONOMIC. The norms of countries where the magazine operates in US. they have the freedom of speech in place. the main reason is considered to be the economic downturn. U. have surged down from the point where it was previously operating.

ecological and ethnic set-up.. a number of studies have examined the standardization or localization of advertising in Asian markets. Hence. global advertising for a well-known fashion brand was perceived to be fairly standardized in Korea and the USA (Jo and Hong. y With increasing bent towards education and increasing literacy rate of countries like USA. India. therefore the demand for the company¶s magazine is likely to increase.³In the first few weeks of 2009. men¶s wear. attitudes and lifestyles derived from the changes in the educational. religious. advertisers are slashing their marketing spend´. Park (2001) also found standardized expression patterns in global ads published by vogue in for clothing (e.g.According to the Business of Fashion Week . Key issue: Standardized ads using same colors can be dangerous as in some countries like Korea where white is a color of purity and innocence. In west it symbolizes brides. white in India is wore on the occasion of death/ funeral. 1 SOCIAL: The social factors that affect a firm include the beliefs. As per cross national market segmentation report 2 14 . weddings and angels but on the other hand in China and Middle East it is looked upon as a color of death and mourning thus social factors should be kept in mind while marketing globally as it may result in loosing popularity and interest of the readers. 2002. demographic. 2005. women¶s wear. values. increased social gatherings are hence serving as a fuel for the increasing demand for products such as accessories. from a cross-cultural perspective it has been argued that standardized ads can have different effects in different cultures. casual wear) in Korea and the USA. 1998). 2000. though this applies to global firms in order to market their products but the magazine itself would not appeal or be acceptable to people in various countries if standardized ads are used in all countries and can have drastic effect on the sale of the magazine. in advertising the products in the social arena global firms like Vogue magazine must track advertising effectiveness for alternative positioning strategy in the various nations. y According to a ³cross national market segmentation report´. According to a recent study done by the research conducted by Bain & Company with the cooperation of 1 Business fashion week magazine. Taylor and Raymond. In response to the recession. Japan and Australia more of women are getting educated. mainly because the magazine features products important for this group. opinions. 2 According to Paeet al. Reece. the outlook for powerhouse fashion publishers like Condé Nast (which has almost monopolized high-end magazines) looks decidedly grim.

y A USC-Annenberg study (the Annual Internet Survey by the Center for the Digital Future) reported 22 percent of survey respondents said ± ³they stopped their subscription to a printed newspaper or magazine because they could access the same content while online´. women are seeking more recognition from the society for their contribution. which enhances the quality of the product.Vogue magazine says that ³style conscious women actively spent in 2010. improvement of its existing product or prove a help in the manufacturing of its product. 3 Report as per Annual Internet Survey by the Center for the Digital Future 15 . its marketing. In Australia. This makes glossy magazine ads something consumers can browse and shop´.S. They no longer see staying home and taking care of the children the only means of their life. To ³click´ on them. Ralph Lauren and Gucci one of the leading fashion brands have already started using QR codes a useful tool linking print advertising in magazines to mobile commerce sites. accessories and beauty. Women these days are actively seeking to achieve their dreams and fighting for the equality of the two sexes. There is a tendency of integrating the global perspective into the magazines. the articles in the magazine cover a wide range of issues faced by today¶s women. therefore the magazine is planning to cater for the diversified needs of its readers. but function like online links. y According to a recent data of BOF ³technological advancements such as Quick Response or QR codes are next generation barcodes that can be easily printed on a physical magazine page. and this is the main technological change that the company is facing though the company has its own website but it has available the same articles in the magazine online also and hence this technological orientation is a cannibalization in itself to the already existing market share and that to for free. y Due to the recent changes in women¶s rights. There are less and less boundaries of different cultures around the world. TECHNOLOGICAL: New technological adaptations help in the possibility of new product. accounting for nearly 70% of total U. Vogue Australia can utilize recent technological changes to improve its value creation for the customers and find new ways to manage the information exchange more efficiently. 3 y Technological advances within publishing have developed rapidly and CNP Australia¶s magazines were some of the first in Australia to be produced utilizing µcomputer to plate¶ printing technology. spending in apparel. there are many women who come from different cultural background. you point and shoot them with your camera phone and they retrieve relevant information on customer¶s phone web browser.

provides information on women¶s fashion. the publication houses have to provide 16 . SUBSTITUTE The threat of substitutes for Vogue Australia and fellow magazines publishers are great. inks.PORTER 5 FORCES ANALYSIS SUPPLIERS The focus of this element is to look at the bargaining power of the suppliers and how they shape the industry. BUYERS The buyers have a great influence on the contents provided by the magazines. and any other material that would be used in the production of the magazine. The information can be distributed through a number of mediums such as newspaper. The buyers have great bargaining power due to its sheer number of consumers for women¶s fashion. entertainment and gossips. So level of substitute available is high. The suppliers for the magazine industry would be the firms providing papers. radio and other printed advertisements. TV. So the power of the suppliers is very low. The power of the suppliers is limited because there are a large number of the firms who provides the materials necessary for the production for magazines which means that the publication houses can easily replace suppliers without having too much problem. The industry. which Vogue Australia is in.

So we see that bargaining powers of the buyers is high. entertainment and gossip. Vogue Magazine also faces indirect competition from magazines and media covering other topics because they are all competing against each other for the disposal income of the general public. which provides same type of information such as women¶s fashion. INDUSTRIALCOMPETITORS The competition within the market is very intense. interesting to the targeted audiences otherwise they would lose sales to its rivals. Assigned ratings to each factor to indicate how effectively firm¶s current strategies respond to the factors mentioned. So the level of intensity of potential entrant will be medium to high. The overhead cost of the magazine industry is not great however the new entrant would have to be able to secure the distribution channel to ensure the exposure to the customers otherwise it would not be able to make a significant impact on the overall industry. Information and other elements for publishing a magazine can be obtained without too much trouble.3 17 .information that is sought after by the public and information that is relevant. The competitions for Vogue cover an enormous range. The threat of new entrants could therefore be relatively large since the only major factor keeping the new competitors away is channel access. POTENTIALENTRANTS They represent another form of threat to the publication houses. EXTERNAL FACTOR EVALUATION MATRIX FOR VOGUE MAGAZINE After doing the industry analysis we as a group have taken key opportunities and threats related to Vogue magazine that are critical to the strategies of the firm. This is illustrated by the late boom of the total number of magazines launched in recent years. Vogue magazines face competition from other titles or media.10 2 3 0.2 0.10 0. OPPURTUNITIES WEIGH RATINGS WEIGHTED SCORE Horizontal integration Personalised information internet through 0.

6 0.2 0.000.234.10 GLOBAL ENVIRONMENT Individual Competitor Analysis Harper¶s Bazaar Harper¶s Bazaar has total circulation of 52.10 2 3 0. and it has the market share of 11%. Harper magazine is a good competitor of Vogue. This was 18 .969.10 0.3 Sophistication of other 0.20 4 0. total readership attributes to almost 580.Utilisation of 0.8 information technology Use of print technology THREATS Intense rivalry 0. Marie Claire Marie Claire has total circulation of 94. with humorous gossipy articles and easy to follow fashion tips. Marie Claire is a joint venture between Hearst Magazines and Marie Claire Album SA) are currently matching high fashion with street-ware. total readers amount to 168.000 and with a market share of 6%. Harper¶s Bazaar has relatively low market share and the fact that the market growth is limited is because of its stage in the life cycle being at maturity level. endeavouring to provide fashion at every price point.4 3 0.3 3.10 4 0.20 technology New entrant due lower fixed cost Financial melt down Total weighted score 0. Their competitive strategy involved making a magazine more accessible.10 3 0.1 4. with profile clothes that women really wear. Harper¶s Bazaar¶s strategy involves a high degree of change in order to promote its magazine.

It realizes the fact that some female carry smaller handbags and the only to take their magazines with them comfortably wherever they go are for the magazines to fit into their handbags. The costs of operations would is quite similar across different titles as well with a few exceptions such as for example Vogue Australia who uses high quality paper. total circulation of 70.000. B as a magazine poses a great threat to Vogue as a whole. SHE SHE has total readers amount to 218. total circulation of 206. The competitive strategy involves focusing on women apparels across all categories. According to the Audit Bureau of Circulations. Cosmopolitan Cosmopolitan has total readers amount to 910.000 and it has the market share of 14%.seen in the November 2009 issue.127 and it has the market share of 24%.000.000. total circulation of 60. The marketing strategies of the titles shown above are generally similar to appeal to younger audiences by changing their traditional approach to the delivery of the women¶s fashion magazine.6% in 2001. InStyle belong usually adopts unique strategy. B has total readers amount to 370.000.784 and it has the market share of 24%. On the basis of competitors analysis the global market share of the competitors are as follows 19 .173 and it has the market share of 7%. According to its competitive advantage and market attractiveness factors. Marie Claire¶s circulation has jumped up by 8.000. Its competitive advantage involves focusing on youth style statement and trend wears. InStyle InStyle has total readers amount to 290. total circulation of 125.416 and it has the market share of 8%. B B is the magazine that is famous to fit into the female carry bags easily prompting convenience factor it is first to introduce the ³pocket´ size magazine. It largely is dominating in the apparels division and is not much of a competition to the Vogue magazine. Cleo Cleo has total readers amount to 728. which featured ³100 Best Buys Under $100´. total circulation of 206. Marie Claire also contains features about women form all around the world.

Harper bazaar Marie Claire Instyle Cleo B Cosmopolitan The following graph depicts how Vogue along with the competitors is positioned. 52234 580000 94969 290000 70173 218000 70416 728000 206784 high on style women¶s youth style audience by Focus on women liberation with style Statement end statement apparels across all across category all category apparels statement changing their traditional approach 370000 215000 385000 217000 20 . INDUSTRY STAGE COMPARISON OF COMPETITORS Harper¶s Bazaars Industry stage Maturity stage Marie Claire High market Maturity stage Low market High market share High market share High market share In Style She Cleo B Vogue with low share market share with low share market share Competitive Focus on Exclusively Focus on Focus on Focus on Younger strategy woman¶s focus wear that women really wear Total reader 168000 Total circ. Vogue fashion industry suffers intense competition due to its rivals and their market share fluctuates with the reactive strategy adopted by firms from time to time.

The success or failure of the marketing plan in Vogue depends much on implementation and control. The workers are rewarded and recognized for their efforts in the formulation and implementation of the plans in order to keep them motivated and upbeat about the operations. INTERNAL ANALYSIS AND RESOURCE BASED VIEW A Resource based view strategy The resource based view of strategy deals with the competitive environment facing the organization but takes an µinside-out¶ approach therefore its starting point is the organization¶s internal environment. because the management should not blindly follow the original marketing plan without making any adjustments to suit the ever changing. To make sure the implementation of the marketing plan is successful Vogue plays a careful attention to the following three elements that set the foundation of sound implementation of the marketing plan. knowledge & skills of Employees which intangible resource that it is difficult for competitor to imitate. Vogue had made a better the marketing plan to suit the circumstances.1 CORE COMPETENCYVogue has assigned a team of experts. volatile business environment and customer demand. This approach emphasizes the organization¶s own set of resources and capabilities as a determinant of competitive advantage. This is a particular important stage of the implementation of the marketing plan. So Vogue as an organization follows a bottom up approach which gives the employees a scope of improvement. This tacit knowledge can provide a comparative advantage in this Fashion Industry. In doing so. who are passionate about the marketing plan to oversee the whole implementation of the strategy. RESOURCE: Tangible-Human resource forms the major source of resource for Vogue magazine. It emphasizes the internal capabilities of the organization in formulating strategy to achieve a sustainable competitive advantage in its market & industry. Vogue studies the marketing plan with the participation of its employees and formulates significant strategy. These are: 21 . Sufficient support from the top-level management is also vital to the success or failure of the marketing plan. adapt to changes in the external environment. Non Tangible: Vogue utilizes its Marketing Plan. 5.5. its brand. Vogue has also encouraged involvement of its workers in the marketing strategies over globe. Vogue has encouraged constant feedbacks from the target audiences and its employees.

informing the fashion industry and those who pay close attention to fashion news that they intend to change its strategy and move into a younger segment. Vogue as its core competency also utilizes tools of advertising method communication. CAPABILITY MARKETING VALUABLE YES RARE YES COSTLY TO IMITATE NO COMPETETIVE IMPLICATIONS TEMPORARY COMPETETIVE ADVANTAGE TEMPORARY COMPETETIVE ADVANTAGE COMPETETIVE ADVANTAGE DESIGN YES YES NO PRODUCTION NO NO NO 22 . These are the things helping Vogue to build distinct capabilities. The benefits of announcing its intentions in fashion week are not only the exposure it gathers but also the chance of getting feedbacks from the fashion industry. Owning the plan 2. which help Vogue determine the appropriateness of the strategy.1. Sales promotion carries out the task of boosting sales and increasing the awareness of the target audiences. Adapting the plan Vogue has also applied its new concept during special events such as fashion week. Supporting the plan 3. VRIO FRAMEWORK FOR VOGUE MAGAZINE The concept helps to understand the resources that vogue fashion magazine has and what is the competitive implication it has on the basis of the following resources.

 ‡ The main strength of Vogue is their prestigious and up ± market image which their readers aspires." says Alex Kuruvilla. 23 .  The unique ³Vogue´ brand image. Now it¶s a bit of a cliché²about strong economic growth.  Vogue will be the first international title to go all alone in India after the government allowed 100 per cent FDI (foreign direct investment) and hence it enjoys an upper hand over other pre-established brands.  Not all the big luxury players are in India as yet and hence there is a competitive advantage enjoyed by the company. Their competitors moved here when regulations did not allow foreign direct investment in the publishing space. there has been a retail boom in the country in the last few years. The increase in the quality of the magazine has helped Vogue magazine create customer value compare to its competitors. hence jeopardizes its chance of reach of consumers and restricts its market share and growth. managing director of Vogue India.  The enduringness of Vogue Australia. as we are like a majority government and not a coalition one. recognition and provide emotional value to its target audiences. Vogue is not readily available in some areas of Sydney. and reports on the number of millionaires being added on each year.  The ³computer to plate ³printing technology used in the production enables Vogue magazine to produce magazine that is on the top end of the scale enhancing the graphic presentation of the magazine.SWOT ANALYSIS OF VOGUE Strengths: Vogue does not believe to enter in the market as a first mover and hence as the CEO rightly puts ± ³we do not believe in rushing into new markets and look for first-mover advantage. all of them are licensed brands. which creates brand awareness.´  When Vogue has entered a little late in India and enjoys a later mover advantage according to the Vogue¶s CEO Vogues present competitors in India are at first-mover disadvantage. Weakness:  The main weakness of Vogue fashion magazine is its reach to the target audiences."This has put us in an advantageous position. As for example based from primary research.  Vogue fashion magazine is the most subscribed magazine on the Internet.  With growing economy people of India now have extra bucks to spend.

entertainment news and gossip delivered electronically. it is for a younger audience and appropriate to be launched in India.  The contents are relatively foreign to the public due to its European style. As for example based from primary research. which could restricts the sales of its magazine because the readers are not interested in the contents. hence jeopardizes its chance of reach of consumers and restricts its market share and growth. Vogue can also launch products such as cosmetics and handbags due to his huge size. Vogue could reach more people via advertising on the Internet. Threats:  The improvement in the information technology could see women¶s fashion.  The improve in the Internet technology and increasing trust of consumers in providing personal information on the Internet could see Vogue receive more online subscription and build an extensive consumer database for monitoring consumer needs and provide them with the chance to create customer value. For example the music industry has to change the way to provide entertainment 24 . Opportunities:  Glamour is a very successful brand of Conde Nast across the world.  Both GQ and Vanity Fair of Conde Nast publication would fetch in a huge market and have the ability to compete with the likes of Maxim and FHM in India in men's magazine section. Vogue can leverage its brand image and prestige reputation to provide consumers more products than just its magazines.  The revolutions of information technology can prove to be a greater advantage for Vogue to manage its information and production system more effectively and efficiently. The main weakness of Vogue fashion magazine is its reach to the target audiences.  The improvement in the information technology could see women¶s fashion. For example the music industry has to change the way to provide entertainment because of the boom of MP3s. Vogue is not readily available in some areas of Sydney. which could force the printed media industry undergo major changes. Due to the increasing popularity of the Internet. which could force the printed media industry undergo major changes. entertainment news and gossip delivered electronically.  The main opportunity for Vogue is in horizontal integration.

It provides certain augmented products also such as horoscope. y A time-honored tradition used by the fashion industry to set trends and market their designs has been to work with famous people to model their clothes & fashion. Vogue is constantly going for a change over. With the advent of such shows as Vogue TV. Information and photographs that appear on the Internet instantaneously reach millions of women the world over. the fashion industry has almost unlimited resources at its disposal. previous marketing trends were very much targeted towards a very specific demographic ± women with exceptionally good figures. They see the colors and trends on vogue. Vogue promotes its magazine on these channels to target its end consumers. the multiplicity of award shows. Vogue in the past has not utilized internet as one of it important source but now they are diverting towards it. popular websites. y Vogue past strategy were very limited in terms that they were not employing extensive fashion model but now Vogue fashion magazine are employing enough models to target its end consumers. the public is barraged with a plethora of designs to choose from. The magazine itself is a major tool for marketing. MTV and other music shows. y Today. it offers the latest information on fashion to its target audiences. an Internet website says this is a must have item for the fall season. packaging. travel.VOGUE¶S PAST & PRESENT STRATEGY¶S y People buy a new dress because they¶ve seen it in a magazine and they think it is the latest trend. 25 . styling. y Famous names in the fashion industry are marketing plus-size fashions even though they were the same companies who previously designed clothes only for ultra-slim women. and all the feature stories that is covered in the magazine. Its actual products are the brand name. Vogue uses its various web sites. Vogue in Australia follows the distribution channel in the form of distributing via retailer. Vogue set trends for women fashion industry using marketing strategies. People get known which fashions are in and which are out. In fact. and membership club. blogs & social networks for promoting the fashion. and quality of the articles. MARKETING STRATEGY Vogue¶s core product is ³Fashion´. online services.

Some major tools of marketing are: y y y y y Advertising Sales promotion Supermarket Trend coffee shops Special events STRATEGY ADOPTED: y Each month. y The printed and display medias are used more. y y y In India Vogue is organizing The Vogue India talent contest for budding fashion writers. Vogue Australia gives TV advertising which are shown during times when there are TV shows that fits with the mentality of the country of operations.Whereas in other parts of the globe it sell through convenience stores also as it enables buyers to easily access ³impulse products´ like magazines. eye ± catching pictures. plus the opportunity to follow up with a free full-size sample if they go to a designated store. 26 . and other forms of visual stimuli would be incorporated to gain target audiences attention and achieving the ultimate goal of delivering the message´. y The advertisement is shown mainly one week prior to the monthly launch of the new issue of the magazine. Around the globe Vogue does its marketing by launching videos. featuring dark. These are mainly used because of its reach and they cost relatively less than television advertising. Vogue's 50. as a promotional tool. ³Attention grabbing headlines. dusky and bronze color women¶s. y y It is also posting articles about what Vogue is and its love for the Indian market.000 most affluent subscribers would receive a free mini-sample of an Elizabeth Arden product in the mail. Vogue India drew a criticism for portraying ³white models´ and hence now it is marketing the magazine by taking it a step further and tackling the color prejudice within the country. through the release of the new magazine which says ³The dawn of the dusk´.

vertically-arranged organizational structures. who they report to. 27 . There are multiple structural variations that Vogue takes on. This is followed by descriptions of several alternate organizational structures including those arranged by product.ORGANISATIONAL STRUCTURE FLOW CHART FOR VOGUE¶s ORGANISATIONAL STRUCTURE Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. employees' responsibilities typically are defined by what they do. The second section provides additional details of traditional. but in a larger organization decisions have to be made about the delegation of various tasks. formal structure may be unnecessary. When a work group is very small and face-to-face communication is frequent. function. Vogue also uses a structured organizational strategy. who reports to them. and for managers. Over time these definitions are assigned to positions in the organization rather than to specific individuals. In Vogue as an organization of huge size or complexity. but there are a few basic principles that apply and a small number of common patterns. and geographical or product markets. The first section addresses organizational structure in the twentieth century. The following sections explain these patterns and provide the historical context from which some of them arose.

Step 5: Create a marketing and sales department with a proven track record exploiting specific business model. Use freelance writers to achieve maximum cost effectiveness in your overall editorial operations. or both. The following are the essential steps that depict how certain activity within the organization are structured. publishing books or a magazine sold on newsstands will be quite different from publishing a comic book or online journal. Publishing companies are structured with three foundational components or capabilities. There are just no bills for paper. opt for online publication. media or the travel industry requires at least a sense of general knowledge and context in order to be credible and compelling. market-leading content -. most important revenue stream will be advertising sales. advertising is sold as banners of varying sizes or shapes. Depending on the frequency and length of flagship publication. half page or quarter page. politics.remains the same. Online. Step 1: Create an organizational chart. Step 3: Find experienced writers. As a general rule. In print. The marketing and sales department is responsible for extracting as much revenue as possible from advertising sales. The editor in chief is directly responsible for the content of publication or publications. Writing about contemporary topics such as technology. Unless one have unique or specialized content that will draw a fiercely loyal audience that will also pay a premium price for it. For example. one need an advertising manager with a deep understanding of and experience 28 . Increasingly. Step 2: Hire a top-notch editorial team. one also needs a managing editor. Look for those with specific experience in your field. all trends point to the eventual extinction of printed publications.Holistic View of fashion magazine¶s organizational structure There are certain steps that fashion magazine industry follows as an organizational structure.the creation of innovative. education. In either case. then ones can charge an annual fee. If an industry publishes a traditional magazine. or as other visual representations on our website. advertising is sold in units such as a full page. The managing editor's job is to keep production flowing against regularly occurring publishing deadlines. The editorial department will develop and manage the content in your publication or publications. But all publishing except book publishing has one key thing in common: Whether we publish in print or online. The essential business -. We'll need specific expertise and experience for each. Established sources for freelance writers include Freelance Writing Jobs and Online Writing Jobs. online advertising is paid for according to how many of our readers actually click through to the advertiser's website. printing and postage. The success or failure will depend in large part on the quality and relevance of one¶s content. or both. Step 4: Make a key decision about whether to publish in print or only online. or the total number of publications one have.

styling. online services. Paris. A lower price is powerful in price sensitive markets whereas in some markets where differentiation is possible and customers are willing to pay higher prices for the products that deliver greater benefits. advertising manager will hire a sales force. Product: ³A product is anything that can be offered to a market for attention. Vogue as a magazine has emerged as a product positioning target customer needs and provides them with superior benefits than the main competitors¶ product positions. price. MARKETING MIX TACTICS OF VOGUE FASHION MAGAZINES Marketing mix tactics The marketing mix tactics consists of product. Vogue offers customer value through its high quality product and prestigious brand image. organizations and ideas. London. The augmented products that are provided by Vogue magazine are horoscope. and membership club. In turn. persons. The magazine offers the latest information on fashion to its target audiences. online services. It includes physical objects. It is crucial for having a greater market share. membership club. place/distribution. Main goal of a product positioning strategy must be creating superior customer value than those offered by competitors. services.in that environment. To attract qualified salespeople. stories about successful women. acquisition. and promotion/communication. Its actual products are the brand name. travel. But ultimately. In order to create a greater customer value Vogue offers additional products such as horoscope. In the very competitive women magazine market. use or consumption that might satisfy a want or need. packaging. travel section. A desired level of market share depends on the product positioning and the marketing effort of the business. we'll have to pay a draw against commission. and Milan. A product positioning strategy targets to provide a good source of cash flow a business by creating an attractive product-price position. The role of the marketing mix tactics is to help implement and achieve the goals of the marketing strategy of Vogue fashion magazines.´ Vogue core product is ³Fashion´. their compensation will be in the form of commissions. health and diet and where to buy 29 . and all the feature stories that is covered in the magazine. Vogue offers the latest fashion trends from European fashion centres namely. great range of cosmetics and beauty sections are included as core products. places. and quality of the articles. Additionally. offering a superior value to the customer will absolutely improve the competitive edge.

trade liberalization and Information Technology they are forming complex network of alliances. The recession in Asian markets and the increased costs of postage and paper for example. Place/Distribution: As Companies grapple with globalization. These include outsourcing. product development and Internet distribution designed to capture more customers and obtain as much value as possible. Other factors in the external environment such as economic conditions have affected pricing decisions at Vogue. there is a major part within the marketing logistics networks. As for example Vogue Australia takes into account of the economic conditions such as the effect of the new budget plan released by the Australian government.Price: The current consumer price for the Vogue magazine is $7.The core competency of vogue fashion magazine also lies in the use of using its distribution channel effectively from its competitors and its ability to reach target audience. convenience goods. these stores are convenient and can satisfy customers¶ needs and 30 . Vogue designs its magazine in A4 size. It is evident that many Vogue readers are high income earners and spenders they are elegant and assign great value to knowing current fashion and lifestyle trends and finding out about them from Vogue. A distribution channel is a set of interdependent organizations involved in the process of making a product available for use or consumption by the end user. marketing objective. These C-stores are normally located near the residential areas and open twenty ± four (24) hours and seven days per week. marketing mix strategy. and of course cheaper to produce than A4 size magazine while content basically remains the same. co. Vogue follows the distribution channel in the form of distributing Vogue fashion magazine via retailer (an intermediary). has led to Vogue passing increases to the advertisers using their magazine. and organizational considerations.95(approx). Although selling prices of goods may be a little higher than usual. Vogue is doing this by introducing a larger than usual ad rate. The internal factors of setting the price of Vogue takes into account of the production costs. This is affected by both internal company factors along with external environmental factors. However. Companies need to combine their competencies to enable them to maintain strong global position in future markets. Besides this. but it may pave the way towards a new trend. Marketing logistics network is a system to deliver the products and services to the end users efficiently and effectively. there is a new form now appearing: a handbag/pocket size. and is called marketing channel. This is a common form in the magazine industry. as Seven (7) ± Eleven and Food Plus´4. Vogue also delivers readers that spend well in excess of the female average. which is half size smaller than an A4 page. as it is easier to carry. Pricing decisions are also buyer-orientated.branding. when considering the price to charge its readers. They are designed to enable firms to grow faster at lower cost and to gain competitive advantage. In addition. This size can only be found in competitive magazines in the market.

Again.wants at anytime. They would be used as part of the promotional tools to boost the sales of Vogue and increase exposure to the right target audiences. following the steps of development of new technology. Vogue does not forget to choose supermarkets as one of its distribution channels as it offers Vogue great exposure. Convenience stores are becoming more and more popular nowadays. Condé Nast Publications offers Vogue on the website. Mass communication would be utilized due to its ability to cover most of the intended target 31 . this also helps marketers to count its turnover easily. Other than publishing the magazine. Thus. beliefs or behavior´3. ³Convenience stores are small stores that carry a limited line of high-turnover Delivering the magazine through the supermarkets creates the chance for Vogue to build a relationship with people who tend to buy groceries only. like 7-Eleven. Furthermore. Both coffee shops possess a young trendy feeling that echo the personality that Vogue is desires to be associated with in order to appeal to the younger market segment. this is the shortest and simplest distribution channel. Subscription: Vogue also utilises a subscription as its marketing strategy. Promotion/Communication: ³ Promotion is the element in an organization¶s marketing mix that serves to inform. there might be a chance to construct the relationship between buyers and producers. Other than this. Selling Vogue through newsagents and convenience stores enables buyers to easily access ³impulse products´ like magazines. Trend Coffee Shops: Starbucks and Gloria Jeans and many other are seen as potential distribution outlets. and helps marketers to notice whether its business is stable. Supermarket: News agents & Convenience Stores: Newsagent and convenience stores are common places that deliver the magazine to the consumers. While customers shop around and pass through the magazine area. Moreover. thus people who are interested in the magazine can also subscribe through the net to save time and cost. Supermarkets are normally clearly categorized different sections for different goods. ³E-Marketing´ is getting more and more popular. persuade and remind the market of a product and/or the organization selling it in the hope of influencing the recipients¶ feelings. even four (4) o¶clock in the morning. many convenience stores operate with petrol stations.

Sales Promotion: Sales promotion is the task of boosting sales and increasing the awareness of the target audiences. Special events Vogue also applies its new concept during special events such as for example Australia fashion week. informing the fashion industry and those who pay close attention to fashion news that they intend to change its strategy and 32 . There are nine elements involved in the process of the communication. Vogue uses this channel effectively as important for its distribution network. and provide high quality coffee. The printed and display medias are used also because of its reach and they cost relatively less than television advertising. The advertisement is shown mainly one week prior to the monthly launch of the new issue of the magazine. all media types are utilized by vogue.audiences. Magazines. The other tools of promotion used would be sales promotion. billboards are the secondary sources of advertising. and special events. The main tool of mass communication is advertising. The suitable shows include Sex in the City. A credible. These are broadcasting. Vogue industry understands the dynamics of the communication process. The venues for sales promotion events are Starbucks. and display medias. trustworthiness and someone who the target audience is or aspired can identify them to would carry out the delivery of the message. The TV advertising would be shown during the times when there are shows which fits with the mentality of Vogue (of any country). printed. and Gloria Jeans. Attention grabbing headlines. Vogue knows what audiences they want to reach and what responses they want. Both coffee shops possess the quality that Vogue would like to see them attached to and both coffee shops capture the traffic flow that is sought by Vogue. newspaper. Direct & Online. Starbucks and Gloria Jeans both have the trendy image about them. The following is the brief summary of the combination of communication and promotion tools that VOGUE fashion magazine chooses as its core competency distinctively from its competitors Advertising: In advertising. many potential Vogue target audiences. which attracts lots of people amongst them. and Alias. Sales promotion and Direct & Online are chosen based on their importance for consumer market. Television be the primarily source of advertising due to its potential reach of target audiences and it would also mean Vogue can deliver the message to its full extent allowing Vogue to incorporate all the elements of the communication into the message. eye ± catching pictures and other forms of visual stimuli would be incorporated to gain target audiences¶ attention and achieving the ultimate goal of delivering the message.

33 . which share the same mindset or those to whom Vogue would like to be associated with in order to achieve maximum effect of its communication campaign. which help Vogue determine the appropriateness of the strategy. The benefits of advertising on the Internet are that it is low cost and reach of its target audiences. due to the vast number of people now engages in net browsing.move into a younger segment. Direct and online Internet has become the latest tool of advertising. The benefits of announcing its intentions in fashion week are not only the exposure it gathers but also the chance of getting feedbacks from the fashion industry. Vogue has also link its website with other fashion sites and cosmetics sites. revolutionized the method of communication.

html 34 . photographic essays.  There are lots of problem faced by consumer regarding the subscription so Vogue should appoint a proper subscription methodology so that the consumer faces less problem. 4 http://www.  Some stuff like horoscope and travel sections are amongst the most popular sections in many countries that customers are after. reducing the current price will not provide desired outcomes. feature articles.consumercomplaints. gossip. news about famous people. stories and greater range of fashion with those target middle income levels but still trendy.  It should encourage feedbacks from the target audiences and its employees on a constant basis. and most of the magazines have prices with smaller marginal difference. 4  Vogue Australia should also encourage involvement of its workers in the marketing strategies. Therefore. issues about real life. product-positioning strategy should be targeting to create superior benefits than those offered by major competitors.  Vogue should focus on service and product differentiation. It should target younger women by containing more about lifestyle.in/complaints/vogue-india-magazine-c452497. The workers should be rewarded and recognized for their efforts in the formulation and implementation of the plans in order to keep them motivated and upbeat about the operations.RECOMMENDATION  Women fashion magazine market is not a very price-intensive market. So vogue can seek to spread this feature more so that it has competitive advantage above its competitors.

Taking into the consideration current account strategy Vogue magazine have to address the issue by constantly innovating the magazine content. To summaries Vogue fashion magazine can be more successful through creation of newer market segment. 35 .Conclusion After considering the internal and external analysis of the Vogue fashion magazines it is clear that there are many strategic issue that need to be considered. As the key driver change in the fashion industry is technology Vogue magazine has to ensure that its technology are quite relevant. It must also tie up with some stores as the recommendation given by us in the report. Although the market is extremely competitive and highly dynamic through first mover advantage and a focus upon brand marketing. Finally through the constant use of role models and celebrity Vogue magazine should be able to ensure that the product remain upfront. Vogue will be able to achieve necessary sales volume and satisfy its readers. It can launch the magazine in Australia where competitors are not performing well to gain the market share and establish its presence.

org/wiki/Vogue_(magazine) Mint newspaper http://www.com/consumer-reviews-for-conde-nast-vogue-magazine-p-3274.org/index.grailresearch.php/Vogue_magazine http://www.marketing-papers.consumerdaddy.asp http://www.referenceforbusiness.bain.com/magazine/  http://fashionablymarketing.wikipedia.com/tag/vogue/page/2 http://www.com/pdf/ContenPodsPdf/Global_Fashion_Industry_Growth_in_Emerging_Mark ets.com/management/Ob-Or/OrganizationalStructure.html#ixzz1FSWM3lMy  http://www.php?Vogue-Magazine&id=3817672  http://www.in/complaints/vogue-india-magazine-c452497.prweek.me/2009/11/opinion-piece-annaa-winter-hires-obama-social-team-for-voguestrategy/  http://www.uk/media/2007/sep/20/pressandpublishing.html http://ideas-smart.com/felix-salmon/2009/07/30/newspaper-self-cannibalization-datapoint-of-the-day/ http://www.com/bainweb/about/press_release_detail.prlog.htm http://www.consumercomplaints. BOOKS:  Understanding Strategic Management ±Anthony Henry TOTAL WORD: 9458 36 .org/10490611-the-fashion-industry-and-marketing-strategies-towards-women.empower-yourself-with-color-psychology.articleworld.html  http://www.fashion MAGAZINES:      Vanity Fair Gloria InStyle Vogue Others.com/news/904692/Why-Vogue-magazine-remains-top-pile/  http://www.asp?id=27954&menu_url=for_the_media.hostip.answers.html http://blogs.com/cultural-color.forbes.livemint.REFERENCES:  http://www.guardian.pdf(imp)               http://www.vogue.com/understand-fashion-life-cycle http://en.businessoffashion.com/2007/09/18/vogue-india-interview-markets-equity-cx_rd_0917markets13.com/comment.html http://www.reuters.co.com/vogue-marketing-plan-in-australia.html  http://ezinearticles.com/topic/vogue-magazine#ixzz1FGj4C3NN http://www.com/2007/08/31233010/8216Why-aren8217t-women.info/pages/178/Cannibalization.html http://ecommerce.html  http://www.

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