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Fashion Marketing

Management report on:


Armani
Submitted to the subject faculty, Mr. Satya Banerjee
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Brand
Overview
 Founded by Giorgio Armani (11 July 1934), an Italian
Fashion Designer.

 Founded in 24 July 1975 at Milan, Italy.

 A luxurious brand selling well designed and expensive


products of High Fashion and Prestige.

 Designs, Manufactures, Distributes and Retails Haute


Couture and Premium accessories.

 Deals with a diversified range of Music, Sports and


Luxury Hotels.
.
Armani collaborates with some 1973

brands after introducing his first


ever Design office in Milan 1974 Brings out his First line of
men’s wear under GA
Officially launches – 1975

Giorgio Armani
1979 Establishes Giorgio Armani
Corporation in USA
Opens the first Emporio 1981

Armani store (Milano)


1981 Launches Perfume –
Giorgio Beverly Hills
Introduces Armani 1986

Junior Store (Milano)


1989 Emporio Armani Express
restaurant (London)
A/X Armani Exchange 1991

Store (Soho-New York)


2000 Launches Giorgio
Armani global website
Introduces Armani 2010

Hotel (Dubai)
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Collaborations
with Brands
and Celebrities
Celebrities
Brands
 Armani Hotels with Emaar Properties (18 Mar 2005)  GA with John Mayer (6 Oct 2004)

 Armani Dolci with Venchi (9 Jul 2010)  GA with David Beckham: Spring/Summer (2008) &
 GA with Reebok (15 Jan 2010) & EA with Reebok (11 Feb Fall/Winter (2009-10)
2011)
 EA with Cristiano Ronaldo & Megan Fox (12 Sep 2010)
 Armani Casa with Rubelli & Molteni Group (17Apr 2012)
 EA with Genesis Luxury Fashion Pvt. Ltd. (20 Apr 2012)  EA with Rihanna & Rafael Nadal (13 Sep 2011)

 GA with Bugatti (7 Jul 2016)  EA with Shawn Mendes (6 Jun 2018)


 GA with Fashion Mame (26 Sep 2017)
 Armani Dolci with Guido Gobino (11 Feb 2019)
 GA with Ferrari (5 Nov 2019)
Social
Contributions
Supported 21st Century Leaders UNHCR UNICEF
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“Global Fund (RED) whatever it takes” Aqua for Life


Charity Projects  

 Earth Alliance
 American Foundation for AIDS Research

Customers Human Resource


5 Pillars of Groups  

2 Sustainability Strategy


Supply Chain
Environment
 Community

Support to No use of Animal Fur Since 2016 Fall Collections


3

PETA

Manufacturing  Collaborated with FIAT in order to manufacture Electric FIAT 500


4 Environment Friendly
Vehicles

Support during  Undertook a series of initiation to support affected communities


5 COVID 19
Emergency
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Brand
Architecture
The Armani brand architecture encompasses one corporate
brand and five sub-brands, each catering to different sets of
target customers and at different price levels.

 Giorgio Armani Privé

 Giorgio Armani

 Armani Collezioni

 Emporio Armani (including EA7)

 Armani Jeans

 Armani Junior

 Armani Exchange

Giorgio Armani, Emporio Armani and A|X Armani Exchange are the three main
lines and the products by Armani Jeans and Collezioni absorbed into the
Emporio Armani label.
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Armani venturing into different product  Armani Casa (home collection)


lines, segments & markets. It has extended
its business to beauty & lifestyle sectors  Armani Beauty (fragrances and
too. cosmetics)

The below mentioned segments are mostly  Armani-branded Dolci


catered to the elites of the society, who (confectionery)
wants to experience the exclusiveness and
elegance of Armani and are willing to pay  Armani-branded Fiori (flowers)
for it.
 Armani Ristorante (restaurants)

 Armani Hotels (hotels)


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Target 01

Consumer The Giorgio Armani

 Popular amongst the elite of the society


 Fashion literate segment
 High-end
 Uses top-quality materials

02
Giorgio Armani Prive

 Couture line
 2005 03
 Red carpet
The signature Giorgio Armani line

 High quality
 Classic apparel
 35 to 50 years age group
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04 06
Emporio Armani EA7

 Young professional segment  Inspired by Ukrainian footballer Andriy Shvchenko


 25 to 35 year old age group  Sporty and exceptional style
 Fashionable and contemporary  Caters to a wide range of sports including running ,
 Focuses on trends and modern traits fitness , golf and winter sports

05 07

A/X Armani Exchange Armani Junior

 Most accessible & affordable Armani brand  Designed for babies, toddlers and teenagers upto
 Young, Modern, Contemporary, outgoing & fun 16 years old
 18 to 32 Years  Sophisticated
 Price Conscious millennials  Simplicity, sleek, tailoring
 Casual, colourful & trendy  Classic colors
Customer
Distribution

Age Distribution Style Preferences


Market
Segmentation

 Giorgio Armani segmentation of brands / consumer / market


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Base of
Segmentation
 Geographic Segmentation
Armani is an international brand market and segmented
its customers on basis of geographical living standards
of the high-end customers, giving them a vision of
expanding other new lines and their brand.

 Demographic Segmentation

 Psychographic Segmentation

 Behavioral Segmentation

 Demographic and psychographic strategies are used


by the Italian brand based on
the segmentation variables such as age, gender,
income, attitude, behavior etc..
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DEMOGRAPHIC DEMOGRAPHIC DEMOGRAPHIC

Age - 35-50 Age - 18-32 Age - 18-30


Gender - M/F Gender - M/F Gender - M/F/K
Income - High Income - Middle Income - Middle

PSYCHOGRAPHIC PSYCHOGRAPHIC PSYCHOGRAPHIC

Life style - Luxury Life Style - Upper class Life Style - Upper class
Social status - High Social Status - Middle Social Status - Middle

BEHAVIOURAL BEHAVIOURAL BEHAVIOURAL

Occasion - Red Carpet Occasion - Regular Occasion - Regular


Loyalty status - Depends Loyalty status - Depends Loyalty status - Depends
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Brand
Positioning
Logo
The logo is a curved "G" combined with a curved "A",
shaped in a circle

 Giorgio Armani positioned itself to focus on products of


high-class, sophistication, style and of the finest quality,
placing itself in a very high class category.

 Giorgio Armani positioned their product through


celebrity approval and preference.

 Focused their sights on Hollywood to ensure easy


access to high-earning and well-known celebrities
which made them one of the preferred fashion houses.
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Luxury characteristics and their level of importance


YES (39%)

Percentage of
respondents believing that
extending a brand also
into categories non-
adjacent to the core brand
has negative impact on
the brand image

NO (61%)
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NO (40%)
Points of
Parity
 Building the brand around the designer
 Focused on elegance and luxury
Do you think introducing less  Sophisticated Designs
expensive products into a  Sticking up to fixed neutral color palettes
luxury brand would have a
negative impact on the brand
image?

Points of
Difference
 Elegant classic image
YES (60%)
 Price strategy
 Targeting different segments
 Brand expansion
Marketing Mix People
7Ps
Product Place

Process Physical evidence


Target
Market

Price Promotion
The Marketing Product
Mix
• The “Armani” brand name is highly sought after because of it’s founder Giorgio
1 Product Armani, one of the most influential designers in the fashion industry

• Varied product offering is a key contributor to the success. Provides for all
2 Place market with premium projects ranging from clothing apparels to food chains,
and even recreational activities

3 Price • Apparel and accessories are designed in a clean, simple style, and aimed to
enhance the personality of the person who wears it, mostly shades of white
and black, soft earth tones, dusty blues
4 Promotion
• Manufactured in Italy tag adds to the premium brand aesthetic

• Armani is ranked 7th among the most popular brands

• Recycled materials are also used in the packaging of all group lines
Varied product offerings of the Armani sub-brands
The Marketing Place
Mix
• Headquartered in Milan, Italy
1 Product or Service
• 500+ retail outlets spread across 46 different countries

2 Place • Licensed channel partners and collaborations with other brands like Fossil,
Ferrari, L'Oréal to sell it’s products

• Well lit stores speak of the deluxe image of the Armani brand with its neutral
3 Price
color theme and classy feel

• Customized goods are sold only in specific locations that are meant to cater to
4 Promotion a target group

• In India, Armani has partnered with Genesis Luxury Fashion Pvt. Ltd

• Armani goods are made in Italy. Manufacturing is also outsourced from Asian
countries like India, Bangladesh and China

• Products are available online and it has tied up with various high-profile
designer boutiques who showcase its products on their websites
The Marketing Price
Mix
• Caters to high class consumers who are fashion savvy
1 Product or Service
• Status symbol for the consumers using them

2 Place • Prices are set according to products look, cut and design

• Armani brand value is also one the reasons for it’s high prices
3 Price
• Price range on the higher side creating a niche in the fashion industry

• The signature Armani suits are of the ultra-premium price points. The Emporio
4 Promotion Armani brand has a lesser price point and provides an excellent line of
affordable fashion.

• Armani men’s accessories are priced well above industry standard

• Armani Prive line of fragrances is the most democratized section of fashion

• Offers like buy 1 get 1 free and Lucky Draw system


The Marketing Promotion
Mix
• Product line is showcased through various events, fashion shows etc. to create
1 Product or Service awareness about their new range of products that are launched in the market

• Armani also promotes its products in print media, social media and TV ads
2 Place
• The fames of your campaign in social media by Armani gained widespread
attention
3 Price
• Collaborations with popular stars to represent its brand diversity in promoting
products
4 Promotion • Armani promotes its products through music and dance and has roped in
Martin Garrix for the same

• Famous Hollywood celebs have walked the red carpet wearing the Armani
label, helping in further promoting the brand

• Promotes itself as Sustainable brand


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Armani
Campaigns
Featuring famous Hollywood and sports celebrities
like Shawn Mendes, Rafael Nadal, Chris Pine, Cate
Blanchett, Meghan Fox etc. for the promotion of it’s
range of product lines

Use black/white photos and rich, and bold


colors to create mystery element
Extended Marketing Mix
5 People
Sales associates collect the details of every customer who spends
more than an average amount, which is determined by each
individual store. Armani employees also often move around
internationally, so they have common sale system globally

5 7
6 Process
Armani offers a special feature to its consumer in checking the
authenticity of its product called “Certilogo” which is a special
identification code that comes with every product

7 Physical Evidence 6
The Armani website incorporates the same design features as its
stores and includes a beauty bar allowing customers to view the
products lined up in front of them. Another innovative feature is a
real-time model that allows the visitor to see products, like
lipstick, applied to an on-screen model, allowing them to evaluate
the shade for themselves
SWOT Analysis
Strengths Weaknesses

S W
● Unique & personality based • Limited global presence as
designing compared to a few other
● All market segmentation ranging international apparel brands.
from fragrances to apparels to • Very small upper segment target
clothing to home interiors. group.
● Growth within the group by • Facing the bad name due to
attending to all its employees
SWOT environmental activists.

Analysis
Opportunities Threats
● The market extension can add to ● Brand duplicity
the future value. ● Big competition (Christian

O T
● Generating better employment Dior,Louis Vuitton,D&G etc)
opportunities ● Brand dillusion due to
● More global expansion in future. overstretch.
● Sustaining consistent brand
personality.
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Future Brand
Challenges • Maintaining financial independence: To
continue as a one man company in the
future could be quite difficult.
• The founders’ dilemma: Leadership needs
to put in place a solid succession plan to • Widening its global presence : Promoting
ensure business continuity of the brand and and introducing the brand’s presence and
company. expanding the stores world wide.

• Brand dilution due to over-stretch: Most • Sustaining consistent brand personality:


of the strong brands in the world have Armani, with its presence in diverse markets,
leveraged their brand equity and extended a very wide brand portfolio, and interacting
their brands into newer product categories, with diverse set of customers, faces this
newer markets and even newer market huge challenge of building a relevant and
segments. resonant personality.
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Conclusion
Giorgio Armani is a symbol of luxury, high class and quality goods. This
Italian fashion house originated by designing, manufacturing and marketing
quality eventually extended to luxury items other than apparel. It runs a
chain of luxury hotels and resorts in significant cities along with bars and
night club and cafes all around the world. Apart from business diversification,
internal strategic factors like the reputation of the founder(Giorgio Armani) ,
brand value, unique and personalized design facilities, innovative marketing
tactics, celebrity endorsements, acquisitions and mergers etc. are the core
strengths of the company. Expanding the target audience, penetrating into
newer markets, development of creative and innovative designs, global
expansion, tie ups, designs for the new normal in the wake of Covid 19
pandemic are potential external factors that create enormous growth
opportunities for the company.
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Reference
Sources
 Armani Website (2020)  The Business Fashion (2015). Inside
https://www.armani.com/us/armanicom Giorgio Armani’s Fashion Legacy.
Retrieved from:
 Brandyuva (2019). Giorgio Armani https://youtu.be/x6zd18LUxp4
Brand History & Marketing Strategies.
Retrieved from:  Bhasin H. (31 Mar 2019). Marketing Mix
https://brandyuva.in/2019/12/giorgio- of Armani. Retrieved from:
armani-marketing-strategies.html https://www.marketing91.com/marketing
-mix-armani/ : Marketing91
 Kumar A. Armani Marketing. Retrieved
from:  Nardi D. V. Three Branding Lessons
https://www.scribd.com/doc/18794047/A from Giorgio Armani. Retrieved from:
rmani-Marketing : Scribd https://www.luxury-
branding.com/library/three-lessons-
 Martin Roll. Giorgio Armani- The iconic giorgio-armani/ : Luxury Branding
Globalisation Fashion Brand. Retrieved
from:  SWOT & PESTLE.com (Sep 2020).
https://martinroll.com/resources/articles/ Giorgio Armani SWOT & PESTLE
branding/giorgio-armani-the-iconic- Analysis. Retrieved from:
fashion-brand/ https://www.swotandpestle.com/giorgio-
armani/
 Brand New (28 Nov 2017). Giorgio
Armani- Brand Difference & Positioning.  Nicoletti S. (20 apr 2020). Opinion:
Retrieved from: Giorgio Armani is Leading Luxury
http://brandnewuctbdm.blogspot.com/20 Towards New Paths. Retrieved from:
17/11/giorgio-armani-brand- https://www.luxurysociety.com/en/article
differentiation.html?m=1 s/2020/04/opinion-giorgio-armani-
leading-luxury-towards-new-paths :
 Maxim (12 Nov 2019). How Giorgio Luxury Society
Armani Built a Global Fashion Empire.
Retrieved from:  Goddard R. (17 Sept 2019). Armani vs
https://www.maxim.com/style/how- Armani Exchange: What’s the
giorgio-armani-built-a-fashion-empire- Difference? Referred from:
2019-11 https://www.robertgoddard.co.uk/blog/ar
mani-vs-armani-exchange-whats-the-
 Bhasin H. (29 Dec 2018). SWOT difference/
Analysis of Armani. Retrieved from:
https://www.marketing91.com/swot-
analysis-armani/ : Marketing91
Thank
You!
Marketing / Report

PRESENTED BY

Preeti Prabha Panda | Priyanka Choudhary | Revathi Vutukuri | Smita Gaur | Priya Sarkar | Kumkum Das

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