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Name: Dinuri Gunarathna

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DINURI GUNARATHNA
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Versace is one of the world’s leading international fashion brand

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founded by Gianni Versace in 1978. Its one of the leading

international fashion design houses and a glamorous symbol of
Italian luxury world wide. After the death of Gianni Versace, his
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family took over the brand . Versace is known for its unique
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designs having symbolic flashy prints and bright colors. Versace

designs manufactures, distributes and retails fashion and lifestyle
products including Atelier , pret-a-porter, watches, accessories
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,eyewear, fragrances and home furnishings all with the distinctive

Medusa logo
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According to CIM Marketing is the management process

responsible for identifying, anticipating and satisfying customer
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requirements profitably. And marketing mix is a combination of

tools used by a business to achieve its objectives by marketing its
services or products effectively to a particular group , marketing
mix is referred to as the 4ps , product , price , promotion and
place or 10ps as later they added people ,process , packaging ,

DINURI GUNARATHNA
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 picture , proof and personality and was called extended marketing
mix.

Versace deals with luxurious items and offers a perfect blend of

breathtaking and unique exclusive products to its consumers.
They ensure that their consumers are offered with unique designs
and latest and trendy styles to maintain its exclusive brand image
and which sets up a new style statement in the world of fashion.
Their collection includes Versace collection, Versace Jeans and
Versus Versace. Their home collection includes products for living
and dining are and bed and bath items such as
frames,ashtrays,blankets,vases,cushions,candles,glassware,trays,
bowl,plates,tea and coffee products, slippers, towels, bathrobes,
comforters, Duvet, pillow cases and bed linen .Women wear

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collection includes beachwear ,active wear, coats and jackets

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,skirts, leggings , jeans and

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trousers,knitwear,sweatshirts,tshirts,bodysuits,bralettes,dresses,b

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louses,backpacks,tote bags , clutch bags ,shoulder bags, boots,
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icons bags, sneaker, watches, eyewear, fashion jewelry,
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perfumes, belts, gloved and hats. Men wear collection includes
Fragrances, Eye-Wear, Watches, Pouches, Card Holder, Key Rings,
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Wallets, Socks, Pens, Fashion Jewelry, Ties, Scarves, Belts,

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Backpacks and Bags, Slides and Sandals ,Loafers and Moccasins,

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Lace-ups ,Sneakers, Beachwear, Active wear, Underwear, Jeans

and Trousers, Sweatshirts, Knitwear, T-Shirts, Shirts, Coats and
Jackets and Suits
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Versace is a global brand that its products are sold in many

countries of the world, the headquarters of Versace is based in
Milan in Italy , By 2016 Versace operated via 1500 boutiques in

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 the world market and with time it has extended in overseas
market. The first boutique out of Italy was opened in Scotland in
1991. In 2011 Versace came up to a partnership deal with H&M to
launch a new clothing collection and home items which were sold
in H&M outlets. In 2015 Mind Group firm from China and Versace
came up to a deal to design luxury residential towers in China
that was called Versace Residencies. Versace has many tie-ups
that does its selling and marketing its products via its outlets, The
official website of Versace offers purchasing and distribution
facilities in several countries even if they don’t have a outlet in
that specific country , this made a huge difference in their sales
as they have grown significantly with the opening of its online
store.
In the end of the financial year 2016, the brand Versace posted its

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incomes at Euro 669 million. Versace targets upper class with the

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very high taste for unique and luxurious items for its consumers.

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Versace has been positioned as a superior brand that blends high

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end couture style and glamorous designs for its customers.
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Versace has a premium pricing strategy as its costumers are from
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a society where they are more conscious of brand value than
price so the brand maintains a very high pricing policy. Versace
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has their customized designs which are simply breathtaking and

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unique so its chargers are extra because due to its exclusive

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nature. The company has been able to hold a high reputation in

the consumer market with success cause the customers are ready
to pay the prices set up by the brand.
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 The globally recognized brand Versace is highest visible among its
elite customers. Versace doesn’t do a lot of promotion as already
their brand is popular and as they target only the high end rich
class people like celebrities, elite business people. Medusa logo, a
mythological figure from Greece which is very catchy and has a
positive impact on customers. Versace is a brand especially for
celebrities, it has been promoting through famous personalities ,
the brand worn by high profile celebrities to show its image in the
fashion industry. Michael Jackson, Elton john, Princess of Wales,
princess Caroline of Monaco, Elizabeth Hurley wore dresses
designed by Versace. Also Versace made in several sponsorship
deals, as it made with Lamborghini to produce Lamborghini
Murcielago LP640 VERSACE in 2006. Versace also takes parts in
several fashion shows as a part of its marketing strategy.

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DINURI GUNARATHNA
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 Versace has many strengths in its business, as its collection is
very exclusive and breathtaking and very unique, Versace’s
headquarters in Milan, Italy and it has estimated 1500 boutiques
worldwide . Versace been in the industry for many years has
established the brand image very well and its globally recognized.
Versace has a wide range of high quality luxury goods from house
holdings to apparel. Versace worn by all celebrities and high
profiled people, Versace has about 500 employees including
expert designers and stylists. As its founded in 1978, Versace
maintains a very classy and strong legacy.
Versace do have few weakness in its business as fake imitations
and replicas in the market that brings a bad image on the brand
and also due to tough competition, there’s high brand switching
and restricted market share growth.

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Versace has many opportunities in its business as large amount of

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importance gained by online retails and E marketing and also it

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can be tapped by Versace. People love looking striking and sharp

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so there’s a high demand for its luxury goods, Versace introduce
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innovative and highly stylish designed products. Global
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expansion to emerging economies where people have high
purchasing power and are affluent.
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Versace faces to few threats, as economic recession and

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downturn has an impact on purchasing power of individuals, the

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other brands which are cheaper copies Versace’s classic designs

and are sold at much cheaper rates. The fast growing fashion
industry bringing brands like Chanel, Christian Dior, Burberry,
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Gucci, Louis Vuitton and Valentino are competitors to Versace and

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they reduce Versace’s business.

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 m
Versace has its macro environmental factors that affects its

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missions and objectives in business such as politics, economical,

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social, technological, ecological, legal.

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Politically Versace did not have any political pressure from the

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Italy government, when Versace opens new boutique in countries,
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the political stability of that country might affected them.
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Economically Versace’s business was going to collapse during the
2008 recession due to the economic downfall in the major
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developed countries however, after the recession ended they

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were able to bring their business back in 3 months.

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Versace connects with its customers on social media as Instagram

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with their official page showing the celebrities in Versace where

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customers get attracted towards the brand and bringing up

campaigns such as fall campaign where the main aim was to
showcase strong women.
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Compared to competitors such as Burberry with current

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technology such as virtual reality changing rooms, Versace

doesn’t have a fast moving technology used in it.
Versace introduced many collections which were eco friendly as
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they completely stopped using fur on their collections. And Versus

appealed to a younger generation alongside a modern generation
by featuring popular culture as Zayn Malik with ecological trends
such as vegan leather.

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 Versace did not have any legal issues except the death of Gianni
Versace cause there was no proof for his death.
Versace market segmentation consist based on upper high class
and celebrities with extremely high taste of fashion and who can
afford it , and they target the urban upper class individuals, its
positioning is a market is very unique and exclusive as it’s a brand
which carries a image of luxury along with chic and unique
designs combing modern ideas and aesthetics .

In conclusion, we can say that Versace has a high brand image

among its customers and they cater to various types of high end
markets other than, clothing. They mainly promote their products
through high profile celebrities and by sponsoring super luxury
vehicles like Lamborghini other than, that they don’t promote

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their products through any other marketing streams. They never

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compromise on their prices due to the high brand image and high-

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quality raw materials that they use in their products. They do

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customize their products with extra charges. Versace has a lot of
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strengths like high brand image, retail stores around the world,
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strong online shopping websites/apps and good customer base.
They also have some weaknesses like fake imitations but, other
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than that they have a variety of service streams, good

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management system. They have few threats like up’s and down’s
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in the market due to macro- economic factors, increasing

competition due to new entrance in the market with cheaper cost.
Versace is using there opportunities very well by entering into
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new markets however, they are not that great in technology and
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innovation. They haven’t faced any big political or legal issues

from the Italian government or from the other countries which
they entered. They faced few downturns in their business during
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the world recession.

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References

DINURI GUNARATHNA
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 Bhasin, H. (2018). Marketing mix of Versace - Versace Marketing
mix. [online] Marketing91. Available at:
https://www.marketing91.com/marketing-mix-of-versace/
[Accessed 12 Aug. 2018].

Kemp, C. (2018). Pestle and Versace - A Summary. [online]

Chelsea L Kemp. Available at:
https://chelsealkemp.blogspot.com/2017/10/pestle-and-versace-
summary.html [Accessed 12 Aug. 2018].

MBA Skool-Study.Learn.Share. (2018). Versace SWOT Analysis |

USP & Competitors | BrandGuide | MBA Skool-Study.Learn.Share..
[online] Available at:
https://www.mbaskool.com/brandguide/lifestyle-and-retail/2832-

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versace.html [Accessed 12 Aug. 2018].

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DINURI GUNARATHNA
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