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MARKETING PROJECT

THE STUDY ON THE MARKETING MIX OF VERSACE


(Submitted in Partial Fulfillment in the subject of Marketing Management)

NATIONAL LAW UNIVERSITY, JODHPUR

Submitted By-

Submitted To-

Utkarsh Saxena

Dr. Archi Mathur

B.B.A-LL.B

Associate Professor,

1289

Assistant Dean
Faculty of Management Studies

NATIONAL LAW UNIVERSITY, JODHPUR


WINTER SEMESTER

TABLE OF CONTENTS

EXECUTIVE SUMMARY.............................................................................................................3
OBJECTIVES..................................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................5
INTRODUCTION...........................................................................................................................6
MARKETING..............................................................................................................................6
MARKETING MIX.....................................................................................................................7
VERSACE...................................................................................................................................7
THE 4 PS OF MARKETING MIX................................................................................................10
4 PS IN VERSACE........................................................................................................................17
SWOT ANALYSIS........................................................................................................................25
DATA TABULATION AND ANALYSIS......................................................................................26
CONCLUSION..............................................................................................................................32
RECOMMENDATIONS...............................................................................................................33
ANNEXURE.................................................................................................................................34
BIBLIOGRAPHY..........................................................................................................................36

EXECUTIVE SUMMARY

This term paper is a study of Marketing Mix strategies adopted by Versace. It is significant in the
following aspects:

Identify the Marketing Mix of the products of VERSACE


Impact of the sale of products of VERSACE
Identify the Drawbacks and scope of Improvements.
Measure the level of satisfaction from the competitors

Therefore, to fulfill the objectives of this paper, intensive research was done.
First, a thorough analysis of the concept of marketing management was done to understand the
concept in detail, so as to draw better conclusions. Secondly, an analysis of the Marketing Mix
Strategies in the market was done, to get a gist of the general trend of strategies adopted by
various organisations in the market. Thirdly, a detailed study of the history of Versace was taken
up, including both the past and the present. Most important of all, a thorough research of the
Marketing Mix strategies adopted by the Company, Versace was carried out. A research that
included both primary and secondary sources through different books, magazines, websites and
questionnaire. Furthermore, the impacts of Marketing mix strategies on the effectiveness and
efficiency of the organisation was studied. How such strategies were related to the said
objectives aimed by the Top Level Management of Versace. A survey was undertaken where
questionnaires were filled by their customers. The results from the said survey were carefully
analysed. After inferring conclusions from the analysis, recommendations were made.

OBJECTIVES

Identify the Marketing Mix of the products of VERSACE


Impact of the sale of products of VERSACE
Identify the Drawbacks and scope of Improvements.
Measure the level of satisfaction from the competitors

RESEARCH METHODOLOGY

SUBJECT- Marketing Management


TOPIC The study of the marketing mix of VERSACE
The method of research opted by me in this synopsis was doctrinal research from both primary
and secondary sources. A plan was developed how to collect the required information i.e. whom
to contact for gathering the relevant data. Data is the foundation of all research .It is the raw
material for any research functions. Therefore, it requires great care to select the sources of data.
Data or facts may be obtained from several sources. Data sources can either be primary or
secondary.

The primary data is collected through questionnaire

The secondary data is collected through books, magazines, newspaper and websites.

The secondary data seeks to examine the findings of research groups and prominent market
experts with regard to the performance of Parle and its managers in the market. The research
analysts paid immense attention to the growth of the company as a whole but an emphasis on the
competitive strategies was hard to find. Thus the author had to put in his own analyses of the
functions of the manager and their impact.

INTRODUCTION

MARKETING
Marketing is based on thinking about the terms of customer needs and their satisfaction.
Marketing is the performance of business activities which direct the flow of products from the
producer to the user. In other words, marketing has less to do with getting customers to pay for
your product as it does developing a demand for that product and fulfilling the customer's needs.
Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.1
- American Marketing Association, Board of Directors
The science and art of exploring, creating, and delivering value to satisfy the needs of a
target market at a profit. Marketing identifies unfulfilled needs and desires. It defines,
measures and quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and promotes the
appropriate products and services.
-Philip Kotler
Marketing is the combination of messages and programs (the 4 Psproduct/packaging,
price, placement and promotion) that drive shoppers to choose your product or service over
someone elses.
- Charlene Samples, Director of Marketing, Heartland Sweeteners
Marketing understands your buyers really, really well. Then creating valuable products,
services, and information especially for them to help solve their problems.
- David Meerman Scott, Bestselling author of Real-Time Marketing and PR

1 https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx

Marketing is influencing behavior to get more people to buy more stuff, more often, for more
money.
-Mark W. Schaefer, Author of the Tao of Twitter
While the definitions of marketing vary based on perspective, they generally refer to
engaging a target market of consumers or other users to ultimately sell a product and
hopefully to maintain a relationship beyond the purchase.

MARKETING MIX

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements. All the elements
of the marketing mix influence each other. They make up the business plan for a company and
handled right, can give it great success. But handled wrong and the business could take years to
recover. The marketing mix needs a lot of understanding, market research and consultation with
several people, from users to trade to manufacturing and several others.2
VERSACE

Versace, a unique Italian fashion house was started by an Italian clothier, Gianni Versace in
1978. After the death of Gianni Versace, his sister, Ms. Donatella Versace stepped in as the
Creative Director at Versace and his elder brother Santo; Versace became its Chief Executive
Officer. Today it is known globally as one of the most luxurious and stylish labels in the fashion
industry. Its casual clothing line focuses on informal clothing: high-end denim and classic Gianni
Versace print shirts. Its latest collection of Designers menswear consists of everything from
2 http://economictimes.indiatimes.com/definition/marketing-mix

faded and distressed jeans to tight-fitting shirts and professional suits. The lines are created and
produced via other designer companies, which are in constant communication with the Versace
Group. These clothing incorporate elements of the signature Gianni Versace line, while
focusing on current seasonal trends. This label offers an exclusive combination of rugged and
professional attire to suit the needs of a wider range of men. Whether youre a high profile
businessman or a trendy teenager wishing to enhance their physical appearance, theres a place in
the Versace label for you.3
Versace Collection is aimed at a younger audience, with varied economic demographics. Men
and women enjoy the diversity within the label and are fascinated by the incredible styles and
designs in each line. Globally, Versace competes with brands such as Armani, Fendi and Tommy
Hilfiger and is considered one of the higher-end labels in the industry which translates into
higher selling prices for their elegant designs. A sweat shirt could cost approximately $400 and
sweaters anywhere from $300.This line is distributed through 56 boutiques and flagship stores,
and 1800 multi-brand points of sale, including Internet-based shops across the globe.
Fashion trends in India are seen to be progressively influenced by the Western styles of clothing
and other fashion accessories, leading to a high growth for the Indian market in the upcoming
years. In fact, it has been observed in recent years that the fashion industry has started
showcasing its work a tramp shows such as Indian Fashion Week to promote Indian hauteur
couture. Typically, the Indian luxury consumer can be classified as:
Urbane
High disposable income
Well qualified
Knowledgeable and aware of luxury market
Widely traveled.
With the Government promoting Foreign Direct Investment (FDI) in Single Brand retail, thisUS
$ 72 Billion (in terms of sales) Versace Group has entered the Indian market, with a distribution
3 www.versace.com/en/history#

tie-up with Pall Mall, a Delhi-based menswear retailer. It has already begun retailing Versace
Sports' casual trousers, T-shirts and jackets which are priced between Rs 5,000 and Rs 15,000.
Recognizing that the luxury sportswear market in India is minuscule, the company does not
expect big volumes from the Versace Sports range yet. With Versace Sports, the Italian company
is testing the domestic market with other products in their range
The menswear market in India has immense potential since there are a few strong brands in
relation to the potential the country has. There is a dearth in organized manufacturing and also
washing and dyeing of the fabric
Eventually, companies with a long term philosophy and focus on quality would have great future
both in the domestic as well as in the international markets. With new investments forthcoming
in shirting fabrics manufacturing by the companies like Raymond, Monti, Hemmerle and others,
the International Brands have lined up quality suppliers and with the availability from these
mills, it is possible to satisfy the emerging trend in the fashion market.
Today, Versace is worn by the elite and the biggest stars in Hollywood. From plunging necklines,
to bold prints, and structured design, when Versace is worn the world knows.
Versace has secured its spot as a family owned business that has taken innovation to the next
level, going so far as to collaborate with Lamborghini and high rise apartments. For a company
that has been around for 33 years, they never cease to excite, amaze, and keep the world talking.4

THE 4 PS OF MARKETING MIX


4 www.fashion.org

1. PRODUCT MIX
A product is an item that is built or produced to satisfy the needs of a certain group of people.
The product can be intangible or tangible as it can be in the form of services or goods.
You must ensure to have the right type of product that is in demand for your market. So during
the product development phase, the marketer must do an extensive research on the life cycle of
the product that they are creating.
A product has a certain life cycle that includes the growth phase, the maturity phase, and the
sales decline phase. It is important for marketers to reinvent their products to stimulate more
demand once it reaches the sales decline phase.
Marketers must also create the right product mix. It may be wise to expand your current product
mix by diversifying and increasing the depth of your product line.

All in all, marketers must ask themselves the question what can I do to offer a better product to
this group of people than my competitors.5
In developing the right product, you have to answer the following questions:

What does the client want from the service or product?

What features must the product have to meet the clients needs?

Are there any necessary features that you missed out?

Whats the name of the product?

Does it have a catchy name?

What are the sizes or colors available?

How is the product different from the products of your competitors?

What does the product look like?

2.

5 https://www.boundless.com/marketing

PRICE MIX

The price of the product is basically the amount that a customer pays for to enjoy it. Price is a
very important component of the marketing mix definition.
It is also a very important component of a marketing plan as it determines your firms profit and
survival. Adjusting the price of the product has a big impact on the entire marketing strategy as
well as greatly affecting the sales and demand of the product.
This is inherently a touchy area though. If a company is new to the market and has not made a
name for them yet, it is unlikely that your target market will be willing to pay a high price.
Although they may be willing in the future to hand over large sums of money, it is inevitably
harder to get them to do so during the birth of a business.
Pricing always help shape the perception of your product in consumers eyes. Always remember
that a low price usually means an inferior good in the consumers eyes as they compare your
good to a competitor.
Consequently, prices too high will make the costs outweigh the benefits in customers eyes, and
they will therefore value their money over your product. Be sure to examine competitors pricing
and price accordingly.6
When setting the product price, marketers should consider the perceived value that the product
offers. There are three major pricing strategies, and these are:

Market penetration pricing

Market skimming pricing

Loss Leader pricing

Differential Pricing

Here are some of the important questions that you should ask yourself when you are setting the
product price:

6 www.marketingmix.co.uk

How much did it cost you to produce the product?

What is the customers perceived product value?

Do you think that the slight price decrease could significantly increase your market
share?

Can the current price of the product keep up with the price of the products competitors?

3. PLACE MIX
Placement or distribution is a very important part of the product mix definition. This comes with
a deep understanding of your target market. Understand them inside out and you will discover
the most efficient positioning and distribution channels that directly speak with your market.
There are many distribution strategies, including:

Intensive distribution

Exclusive distribution

Selective distribution7

There are some of the questions that you should answer in developing your distribution strategy:

Where do your clients look for your service or product?

What kind of stores do potential clients go to? Do they shop in a mall, in a regular brick
and mortar store, in the supermarket, or online?

How do you access the different distribution channels?

How is your distribution strategy different from your competitors?

Do you need a strong sales force?

Do you need to attend trade fairs?

Do you need to sell in an online store?

7 Marketing Mangament, Planning, Implementation & Control, V S Ramaswamy & S


Namakumari

4. PROMOTION MIX
Promotion is a very important component of marketing as it can boost brand recognition and
sales. Promotion is comprised of various elements like:

Sales Organization

Public Relations

Advertising

Sales Promotion

Advertising typically covers communication methods that are


paid for like television advertisements, radio commercials, print
media, and internet advertisements. In contemporary times, there
seems to be a shift in focus offline to the online world.
Public relations, on the other hand, are communications that are
typically not paid for. This includes press releases, exhibitions,
sponsorship deals, seminars, conferences, and events.
Word of mouth is also a type of product promotion. Word of
mouth is an informal communication about the benefits of the
product by satisfied customers and ordinary individuals. The sales staff plays a very important
role in public relations and word of mouth.
It is important to not take this literally. Word of mouth can also circulate on the internet.
Harnessed effectively and it has the potential to be one of the most valuable assets you have in
boosting your profits online. An extremely good example of this is online social media and
managing a firms online social media presence.8
8 www.marketingmix.co.uk

In creating an effective product promotion strategy, you need to answer the following questions:

How can you send marketing messages to your potential buyers?

When is the best time to promote your product?

Will you reach your potential audience and buyers through television ads?

Is it best to use the social media in promoting the product?

What is the promotion strategy of your competitors?

4 PS IN VERSACE

PRODUCT MIX
The first stage in building an effective mix is to understand the market. VERSACE uses market
research to target key market segments which identifies groups of people with the same
characteristics such as age/gender/attitude/lifestyle. The knowledge and understanding from the
research helps in the development of new products . VERSACE carries out its market research
with consumers in a number of different ways. These include:

using focus groups to listen to consumers directly

gathering data from consumers through a variety of different research techniques

Product testing with consumers in different markets.

VERSACE has many key market segments which include Mens Accessories, Womens
Accessories, Boys and Girls Accessories, Sunglasses, Watches, Jewellery, Fragrances and
Palazzo Bags.
In Mens Accessories, VERSACE deals in:

Shirts, T-shirts, jackets & coats


Pants and Jeans
Sweatshirts
Formal Suits
Formal Shoes including Lace ups, Monkstraps, driving shoes, Moccassins, Loafers,

Sandals, Sneakers and Palazzo Sneakers


Leather Belts
Foulards and Scarves
Ties and Silk Accessories
Fashion Jewellery including Cufflinks, tie bars, earrings, bracelets, rings and bracelets.

Watches
Sunglasses
Palazzo Accessories includes bags and shoes.

In Womens Accessories, VERSACE deals in:

Dresses
Shirts and tops
T-shirts and Sweatshirts
Knitwear and Skirts
Pants and Jeans
Jacket and coats
Lingerie and Beachwear
Small Accessories includes Wallets and small leather goods, key chains.
Foulards and Scarves
Fashion Jewellery includes Necklaces, Rings, Earrings and Bracelets
Watches
Sunglasses
Special Palazzo bags

By looking at the products of VERSACE, we can infer that VERSACE has a wide range of
accessories for both Men and Women.
Versaces online website delivers the product with a solid packaging. They use a neutral box to
save the product from robbery. The order will be wrapped in white tissue paper or packed in a
Versace garment bag or special Versace paper boxes. Accessories and shoes, foulards and ties
will all be boxed while your handbag will be delivered in a Versace fabric bag for protection.9
Versace Online Store is the official and direct operated online distributor for Versace products
featured on this website and we unconditionally guarantee that every item we sell is 100%
authentic. Versace and Versus Versace Ready To Wear, Shoes & Bags, Small Leather Goods and
Accessories have an additional authenticity certification called Certilogo in order to guarantee
you always and everywhere an authentic and original Versace product. Please note that this
certification is a part of the product and can be attached to it or separately accompanying the

9 http://us.versace.com/help-faq/faq,en_US,pg.html#versace-faq

product. In case of returns and reclamation it is obligatory to return the product with its specific
certification label/card and a product can be returned back within 30 days of purchase.

VERSACE PRODUCT TIMELINE

Versace was among the first to revive the cat suit, bring back the mini skirt, use bright

neon colors, show tights worn as trousers and bring back the bustier and bead it.
In 1982, Versace broke the mould when they revealed the metal mesh dresses for the first

time.
In 1983, the hit TV-show Miami Vice introduced there brightly colored jackets to a much

wider audience.10
In 2014, Versace CEO, Gian Giacomo Ferraris gave a statement that the company is
mainly focusing on products MADE IN ITALY, as products made in Italy has the
maximum sales.11

PRICE MIX
Pricing is a major element of marketing any product, and it is vitally important to set the right
price. A price that is too high or too low for the target market can seriously affect sales. Elements
such as target market, profit margin needed growth strategy for the company and market share all
play a role in what pricing strategy is used. Premium pricing can use for several purposes.
VERSACE uses Skimming pricing strategies for its product. Skimming pricing strategy means to
skim the cream off the top of the market by setting a high price and selling to those customers
who are less price sensitive. Skimming is a strategy used to pursue the objective of profit margin
maximization.12
10 http://www.made-in-italy.com/italian-fashion/designers-and-brands/versace
11 Vogue Magazine, November,2014 edition.
12 http://www.netmba.com/marketing/pricing/

The pricing strategy for the new brand proposition will go in line with current diversification
strategy Versace adopts, however most products will still be premium-priced to maintain an
aspirational image of the brand. The target clientele will be consumers with a large percentage of
disposable income, but the possible price skimming strategy (charging a higher price for newly
released collections and reducing prices as the trend becomes more mainstream) will attract more
price-conscious consumers as well.
VERSACE also uses Competitive pricing strategy keeping in mind its competitors like Dolce &
Gabbana, Armani, Prada and Gucci. The target customer for VERSACE is the upper-upper and
upper middle class as well as high end customers. In fact, the higher price point helps in the price
quality approach and psychologically, customers think that a higher price will mean better
quality as well. Thus, VERSACE rarely drops its prices.
Different prices of VERSACE products:

A suit cost around 1900 pounds


A shirt costs from 700 to 1100 pounds
Men and Women watches cost from 1200 to 2500 pounds
Sunglasses costs from 100 to 160 pounds.
Palazzo bags costs from 700 to 1400 pounds.
A womens dress costs from 600 to 6000 pounds
T-shirts and tops costs from 500 to 900 pounds.

These high prices show us that VERSACE products are made for rich and wealthy section of the
society.

PLACE MIX
The major areas in which Adidas is sold is through retail outlets. Adidas has its own exclusive
stores in which the material is provided directly from the company. On the other hand
VERSACE sell its products through its online website.
Thus the distribution channel of VERSACE is as follows

Manufacturing > VERSACE outlets > End customer

Manufacturing > Distributor > Multi brand showrooms

Manufacturing > online fashion website/VERSACE website > End customer

VERSACE follows a selective distribution strategy to sell its products. Selective distribution
strategy involves a producer using a limited number of outlets in a geographical area to sell
products. An advantage of this approach is that the producer can choose the most appropriate or
best performing outlets and focus effort on them. 13 In the case of Versace, they have a limited
number of outlets in a city as compared to other brands. For example, Versace has three or four
outlets in the whole of Mumbai, this makes Versace follow Selective distribution strategy.

13 www.yourarticlelibrary.com

VERSACE is very unique and one of the things that make it a stand out brand is the fact that it is
a vertically integrated retailer. What this means is that it designs, manufactures and distributes
the products itself. This approach seems to be working for it because it has managed to establish
itself as one of the leading Italian fashion stores globally. VERSACE is present in over 30
different countries including India and its expansion is ongoing. Therefore, you will soon be
seeing more VERSACE stores in more countries.
In fact, 90% of VERSACE stores are owned by the company and the rest are joint ventures of
franchises. This means that customers experience the same environment when entering one of
the VERSACE stores is it they are in London, Rome, New York, Paris, Rio de Janeiro, New
Delhi and Mumbai the stores are spacious, well-lit, modern and predominantly whiter and walled
with mirrors. VERSACE has around 90 boutiques and 400 outlets.
Most people say VERSACEs real strength lies in its culture, something that can never be
replaced for anything.

It is unbelievable but the fact is VERSACE comes out with at least 300 or more new designs per
month. This, coupled with the brand name VERSACE enjoys, helps to price their products
according to their will and wish, as new trends tend to be a bit costly.

PROMOTION MIX
Promotion is the most important part of a company. In the 21 st century, with the introduction of
new kind of Medias, companies have invested most of their time and money in promoting their
products.
VERSACE over years have used different promotional strategies to attract customers and a large
market segment.

In the 1980s and 90s, Gianni Versace was one of the first Italian designers to hire world-class
photographers, such as Richard Avedon, Bruce Weber and Steven Meisel, to shoot his advertising
campaigns. He also employed the top modeling talent of the time, turning girls like Linda
Evangelista, Naomi Campbell, Claudia Schiffer, Yasmeen Ghauri, Christy Turlington, Stephanie
Seymour, Cindy Crawford, Helena Christensen and Kate Moss into "supermodels" and global
celebrities.
VERSACE earliest clients were Phil Collins, Bruce Springsteen, George Michael, Eric Clapton,
Elton John and Michael Jackson, among many other artists. They also made clothes for the
Princess of Wales and Princess Caroline of Monaco.
These designers, models and clients helped VERSACE to promote their products to other people
in the society during the 80s and 90s.
Top actresses and singers, from Jennifer Lopez to Beyonce and Penelope Cruz, keep choosing
the maison's flamboyant style for award ceremonies and gala appearances. The company has a
long history of fostering its image by courting global celebrities. Many other stars, such as
Madonna, Britney Spears, Christina Aguilera and Demi Moore, have endorsed the brand in
exchange for free clothing allowances and multi-million dollar contracts.
Versace is looking to reach young, tech-savvy consumers with their latest digital marketing
campaign promoting the new Versus product launch. Versaces focus has been on creating a full
digital experience surrounding the Versus line. This strategy incorporates social media
marketing, a new website, and an online store experience. The digital campaign was designed to
raise awareness and to hype up the launch of their new collection on May 15th in New York.
Looking to target a younger consumer audience, their social media strategy includes Facebook,
Twitter, Instagram and Google+ profiles for Versus. Versace is encouraging consumers to join
their Versus community and they plan to provide fans and followers with behind-the-scenes
looks at the creative process and the design concepting for the new collection.
Versace does communicate in masses. Usually Internet and magazine, ads on fashion website and
magazines like Vogue and GQ as their channel. They have not yet starting promoting through
television advertisements.

Versace offers customers with seasonal sales twice a year, this sale is notified and a personal
invitation is given before the sale start, so to maintain the exclusivity of the brand.

YEAR

TOTAL REVENUE (in millions)

2012

10.9 Euros

2013

15 Euros

2014

21 Euros

2015

41 Euros

The above tabular representation of revenues tells us that promotion strategy used by VERSACE
after 2009 crises helped them to increase the revenues over years and made it a 6 million Euro
company.
Their commitment is clearly visible in the attention they pay to each and every detail of their
showrooms. The elegance with which the windows are laid out and the way the shop attendants
are groomed, everything is worked out according to a plan that is very precise. Every store
manager has free access to talk to their counterparts at Italy regarding the marketing and
improvement strategies.
Small and regular product shipments are designed to keep the inventory scarce and fresh;
compelling customers to buy urgently and frequently visit the store to check what is new. Bar
coding, online shopping and computer, aided purchases are all measures designed to increase
sales and make it a global brand.

SWOT ANALYSIS14
STRENGTHS

Exclusive , Breathtaking and Intricate collection

They have about 82 boutiques worldwide as well as their main headquarters in the
fashion capital of the world that is Milan , Italy

Very well established brand image and recognized globally

High quality and original luxury goods

Their brands are worn and endorsed by all celebrities who enjoy looking both sexy and
sophisticated

They have about 500 employees containing an expert team of designers and stylist

Product portfolio also includes perfumes, watches and even mobile phones

WEAKNESS

High price being charged for all products means limited target audience
Fake imitations or replicas affects brand image
Due to tough competition there is a high amount of brand switching

OPPORTUNITIES

Online Retail and E-marketing are gaining large amount of importance


Demand for luxury goods is always rising as people love looking striking and sharp
Innovative and stylishly designed products

THREATS
14 http://www.slideshare.net/082011341/versace-fashion-brand-analysespresentation

Economic recession and downturn has an impact on purchasing power of individuals


Other cheaper and lower brands trying to copy their classic designs and selling at much

cheaper rate
There are many counterfeits available for the brand.

DATA TABULATION AND ANALYSIS

A survey for 40 people was conducted between the age group of 18- 25 years of the students of
National law University, Jodhpur. The Survey is followed by an analysis.
Q.1 Have you ever heard of Versace? If yes through what medium?
Medium
Television
Print Media
Radio
Internet
Acquaintances and Relatives
Never heard

Percentage
1%
10%
1%
80%
6%
2%

Analysis: 80% people have heard about Versace through Internet and 10 % through print media,
this clearly shows that Versace has used Social Media and Print Media as their main medium of
promoting. Versace has not yet started promoting through Television thats why only 1% people
knew about it through television.

Q.2 Have you ever been to a Versace store or outlet?


Yes

No

Q.2

YES

44%
56%

NO

Analysis: 62% of the people who gave the survey have visited the store of Versace once in their
lifetime. This means that Versace should open more outlets so that people could visit them
without facing any problem.

Q.3 Have you ever purchased a product of Versace?


Yes

No

Q.3
14%
YES
NO
86%

Analysis: 14% people have purchased the products of Versace which proves the point that
Versace is a brand for high end users.

Q.4 Are you happy with the quality of the products made by Versace?
Yes

No

Q.4
10%

YES
NO
90%

Analysis: 90% of the people were happy with the quality of the product they purchased; this
means that they should force less on the quality rather than anything else.

Q.5 If yes, then how do you rate the quality of the products of Versace?
RATING
Excellent
Very Good
Good
Fair
Poor

PERCENTAGE
82%
10%
4%
4%
-

Analysis: 82% of the people rated the product which they purchased as excellent and only 4%
rated the product as fair and no one rated the product at poor. This should boost the morale of the
company as their products is being liked by the customers

Q.6 Are you satisfied with the price of the product compared to the quality of the product?
Yes

No

Q.6
20%

YES
NO

80%

Analysis: Only 20% of the people were satisfied with the price when compared to quality of the
product. This means that Versace should either increase the quality of the goods as to the prices
or should reduce the prices as per the quality of the product.

Q.7 Do you think Versace should sell more products on one on basis rather than selling it online?
Yes

No

Q.7
25%

YES
NO
75%

Analysis: 75% of the people believe that Versace should sell more of its product on one on one
basis. One on one basis gives a customer an edge to see it personally and try it without waiting
for the delivery to happen.

Q.8 Do you think Versace should advertise more on its product than it does?
Yes

No

Q.8

52%

48%

YES
NO

Analysis: 52% of the people thought that Versace should advertise more about its product. This
percentage is not so much, so Versace does not need to advertise more for its products.

Q.9 Are you aware of the various offers made by Versace?


Yes

No

Q.9
16%

YES
NO

84%

Analysis: 84% of the people did not know about the offers that Versace provides their customers
with. This is a positive point as Versace provides those offers to an exclusive gentry as the brand
is an exclusive one.

CONCLUSION

An organisation enters a market with the aim of earning profits in the long run. No matter how
efficient the organisation is, its success is still dependent on its products, how they price those
products and promote them at different levels.
VERSACE is a brand of clothing and other accessories range in the Italian market designed to
attract high end users to purchase their products. As such, it has created a clear position in the
market. This shows that VERSACE understands its consumers and has produced this
differentiated product range in order to meet their needs.
VERSACE has been one of those organisations that has continuously evolved and has placed
great reliance on its Marketing Mix Strategy. The strategies so adopted have played a great role
in helping VERSACE maintain its position in the market.
Their main strength zones are that they have an exclusive and breathtaking collection and have a
high quality and original luxury goods which make them stand a step ahead with their
competitors. The main reason behind the success of VERSACE is its links and tie ups with
different celebrities which give them an edge. However certain shortcomings are also there. The
reason for this shortcoming is not solely the fault of VERSACE, but the exceptional strategies
opted by its competitors. Further, there exist areas where VERSACE needs to work upon.
Despite it having an elaborate advertising strategies, there exist areas where more advertising
needs to be done like promoting their products through television advertisements.

RECOMMENDATIONS

This Term Paper is only a study of the Marketing Mix strategies adopted by VERSACE, and the
efficacy of such strategies. This paper does not seek to make any recommendations. However to
give finality to the paper following recommendations are being made to the organisation with
due humility:
1. Versace should shift its focus from a fashion brand to a lifestyle brand. If the
Versace brand goes too mainstream with its style it will lose both its distinct and
relevant points of differentiation and its cache and desirability among the image
oriented consumer targets for such expensive products. It's a fine line that must be
carefully walked.
2. Versace should start promoting its product on television through advertisements as
everyone these days have a T.V. and advertising through television will help the
customers to know more about Versace and it will help them to increase their
sales.
3. Versace does a great deal of social work in the name of Corporate Social
Responsibility but none of it is made known to the general public. Therefore, what
needs to be done is advertisement of such work which will yield in more
customers.
4. Versace needs to advertise more of its products which are yielding it more profits
and are more popular amongst the youth. For example, Versaces cologne range
has a very good sale, so they should advertise this more so to increase profits.

ANNEXURE

QUESTIONNAIRE TO BE FILLED IN BY A CUSTOMER.


NameGenderDesignationAge1. Have you ever heard of Versace? If yes through what medium?
Never heard

Television

print media

Radio

Internet

Acquaintances/other relations

Others (please specify): _______


2. Have you ever been to a Versace store or outlet?
Yes

No
3. Have you ever purchased a product of Versace?

Yes

No
4. Are you happy with the quality of the products made by Versace?

Yes

No

5. If yes, then how do you rate the quality of the products of Versace?
Excellent

Very Good

Good

Fair

Poor

6. Are you satisfied with the price of the product compared to the quality of the
product?
Yes

No
7. Do you think Versace should sell more products on one on basis rather than
selling it online?

Yes

No

8. Do you think that Versace should advertise more on its product than it does?
Yes

No
9. Are you aware of the various offers made by Versace?

Yes

No

BIBLIOGRAPHY
Treatises
Marketing Mangament, Planning, Implementation & Control, V S Ramaswamy & S
Namakumari...............................................................................................................................14
Magazines
Vogue Magazine, November,2014 edition.....................................................................................19
Weblinks
http://economictimes.indiatimes.com/definition/marketing-mix....................................................7
http://www.netmba.com/marketing/pricing/..................................................................................19
http://www.slideshare.net/082011341/versace-fashion-brand-analyses-presentation...................25
https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx........................................6
https://www.boundless.com/marketing..........................................................................................11
www.fashion.org..............................................................................................................................9
www.marketingmix.co.uk..............................................................................................................12
www.versace.com/en/history#.........................................................................................................8
www.yourarticlelibrary.com..........................................................................................................21
http://us.versace.com/help-faq/faq,en_US,pg.html#versace-faq..................................................18
http://www.made-in-italy.com/italian-fashion/designers-and-brands/versace...............................19