British School of Business

Armenia

MBA FOR EXECUTIVES

MODULE ASSIGNMENT: Marketing Management

Student Name Baghyan Ashot

Student Registration No. A003ARMARM0415

Module Lecturer Anand Walser

Module Tutor Diana Galoyan

Date Submitted 8 October 2015

Total Word Count 4500

Table of contents
Introduction…………………………………………...……………………………………….…….4
Review of VK……………………………………………………………………………….………..5
Marketing Audit of VK Atelier Haute Couture….………………………………………….…….6
5M's of VK firm…………………………………………………………………………….………..7
SWOT analysis of VK Atelier Haute Couture and Opportunities for two new diffusion lines:
VK Glamour Dictators and VK Young Generation…………………………………………….…8
PESTEL Analysis…………………………………………………………………………………..10

Market segmentation and Market Targeting via new developed brands: VK Young
Generation and VK Glamour Dictators……………………………..
…………………………………………13

Geographic
segmentation…………………………………………………………………………..13
Demographic Segmentation……………………………………………………………….……….14
Psychographic Segmentation………………………………………………………………………16
Targeting market……………………………………………………………………………….…..17
“Seeds” of VK brand Architecture for three-year plan and beyond or how to cause panic
among competitors in more effective branding
strategy…………………………………………………18
Implement ZMET to make improvements in the Total Customer Experience…………….…..22
Digital Marketing…………………………………………………………………………………..24
Product……………………………………………………………………………………………...25
Price ..…………………………………………………………………………………………..…..27
Promotion…………………………………………………………………………………………...28
Place………………………………………………………………………………………………....32
Conclusion…………………………………………………………………………………………..34
Bibliography……………………………….………………………………………..………………35
 'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and

V
the way you live.' - Gianni Versace

Introduction
Vahan Khachatryan Atelier Haute Couture new opened operate in fashion
industry. Basically, company focus on luxury and upmarket. Marketing
audit based on 5M's and SWOT analysis reveal that company operate
effectively and has great opportunities for further expansion. However,
entering new marker (ready-to-wear) company should radically change its
business model, particularly, marketing niche strategy as the volatility of
market and unpredictability of new business environment could provoke
fail of previously effective functioning marketing strategy. Moreover,
company needs new marketing strategy in order to take steps its objectives:
to expand business in Italy. New marketing strategy means that company
should find access to finances in order to expand business. PESTEl
analysis reveals that government help companies operating in light
manufacturing to provide access to market and access to finance. It helps
company to order new fabrics and headquarter and enter new market-ready
to wear and mass production.

Company should implement new marketing strategy such as flank

marketing strategy, new comprehensive brand strategy which aim to find
new solutions: make improvements in total customer experience, find new
ways for marketing mix and consequently hold a leading position in fast-
fashion market. Based on this company should develop two new brands
and diversify its portfolio in order to compete effectively in new markets.

Source:INK361
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Review of VK

Vahan Kachatryan (VK) is one of the

famous Armenian fashion-designer. At the
age of 18 VK made itself felt. Vahan study
in Florence, which is worldwide
recognized fashion schools. Soon-2011-
Vahan began working for Dolce &
Gabbana, where he was able to prove
himself. Dolce & Gabbana leave its
fingerprint on Vahan Kachatryan’s view.
Working in Dolce & Gabbana Vahan found
main direction in fashion design for himself. During
traveling in Europe and Middle East Vahan could
explore and discover the features of different culture and tradition which in its turns serves as an
inspiration for his works. For this reason, VK brand demonstrates the fusion of extravaganza of
Middle East, Italian baroque and French rococo. Now VK has its own Atelier Haute Couture in
Yerevan where he presents two couture collection during a year (Vahan Kachatryan, 2015).

11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Marketing Audit of VK Atelier Haute Couture

Marketing Audit helps us to understand VK brand real position in market and reveals the reaction of
marketing model of company connecting to external and internal environment and operations.
Marketing audit also reveals the effectiveness of the current marketing strategy, culture, systems and
processes and, in addition it supports to develop new marketing strategy, systems, operations and
culture if they have not showed any significant results concerning objectives of company or they
have not reacted adequately to environmental demands (Gilligan and Wilson, 2009).

VK brand now is associated with sophistication and luxury. VK Couture Atelier satisfy the
needs of defined segment. VK is most of all niche player focusing on specific market segment.
Being atelier haute couture company offer unique and special product to specific target group-
singer, actress, wife of officials, officials and other famous people (Drummond, Ensor and Ashford,
2008). VK positioned as Atelier Haute Couture in Armenia which means that company adhere to
market-niche strategy. The latter allows Couture Atelier to avoid from foreign grand competitors of
mass production and ready to wear (Kotler and Keller, 2012).

Now, VK make attempts to position also as a manufacturer of ready to wear garment. In comparison
with haute couture ready to wear garments is available over a wide range of consumers a (Waddell,
2004). This approach helps company to enter new market. 5-M's evaluation method reveal that
company function effectively and, in addition the internal environment of company react in efficient
way to external changes. However, company should change its business and marketing strategy in
order to achieve its objectives: expand business in Italy and take part in Paris fashion show as a
recognized brand. In local market VK Atelier Haute Couture compete with Shadoyan Fashion
Couture House, Faina and Nikolyan labels. VK's collections: Treasures of Armenia Andalucia-and
fashion shows entirely differ from competitors. Substantially, VK promotes its product via fashion
and trade shows (Milan and France trade show, Mercedes-Benz Fashion Show in Kiev, Pret-a-Porter
Yerevan Fashion Shows) and fashion magazines (Elite Life).

However, entering new market (ready to wear garment) company should effectively use
reengineering to redesign of business processes in new way in order to could compete with world-
wide recognized brands such Zara, H&M, M&S, Benetton, Massimo Duty, Ralph Lauren, Emporio
11

Armani, (Hill, Jones and Schilling, 2015).

 'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

5M's of VK firm

Man

Money
VK Atelier House has near 20 workers
During Fashion Shows company hires
additinal workers on
contracts
Vk Atelier Haute Couture focus on
custom demands and, in addition it also
offers its unque style. Thus the fusion of
customer demands and VK Atelier
fashion style means that team is more Materials
target driven

Product differetiation shows that

marketing team works effectivly.New
ready to wear "Treasures of Armenia"
collection makes brand more accessible The planning process of company is less
structured and like an organic approach
Team also could spead new trends in The Budget of marketing is limited (Gilligan and Wilson, 2009)
more effective ways to the rest of
population(word of mouth). The great part of budget is used to Foe example, marketing team could
provide promotion of brand via analyze marketing opportunities and
They also take first step to develop fashion showes redefine new market(ready to wear)
effective and efficient supply chain.They (Kotler and Keller, 2009)
use e-commerce to support customer
reltionship management
Now some customers could buy VK
prodcuts from online shop

Awareness and promotion of new product

is provided via fashion showes, fashion
magazines or online mgazines(Biayni
Online Magzaines), online-shoping or via
boutique located in Tsaghkadzor
Fashion Showes and exibitions:Mercedes
–Benz Kiev Fashion Days, Tranoi
InternationalFashion Tradeshowes, Minutes
Oriflame Fashion Show.

Machinery
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

S W

Customer Face of Brand Needs of

Centricity (Lusine qualified
Unique Tovmasyan) staff
Fashion style

Limited
Market
VK brand
is less
known in
local
market
VK is not
T Talented Available
designer At a wide
Range of
Audience

Capture significant part of

ready to wear market
Possibility to Mass
fail in market production
Open Mass Due to Harsh could
Boutiques production Competition fail
in different in new due to
corners of Market scarcity
Yerevan of
demands

Harsh
Competition
In new market
Could provoked
the fail of new
Product
o T (diffusion line)
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

SWOT analysis of VK Atelier Haute Couture and Opportunities for two new
diffusions line: VK Glamour Dictators and VK Young Generation

VK
SWOT analysis helps us to understand the whole concept of VK Atelier Haute Cauture business.
Strengths and Weaknesses which touch the internal environment show that marketing of company
focus on customer orientation and try to advertise VK brand via famous fashion model Lusine
Tovmasyan. However, entering new market and opening new diffusion company should cooperate
with new celebrity. For example, Nicole Kidman advertise Chanel and Madonna promote the other
brand-Jean Paul Gaultier. They should be the connecting link between brand, particular lifestyle
and consumers. It means that the company also should increase the advertising budget (experience
of world fashion industry show that it should fluctuate 6%-12%. advertising budget (Hines and
Bruce, 2007).
VK brand is well-known between famous people in Armenia. However, as VK enter new market-
ready-to wear, mass production-it should make accentuate on needs of new segment. VK brand is
less known in local market and wide spectrum of audience which could be a great barrier during
entering new market. Thereby, VK Atelier Haute Couture should develop supplementary strategy
for two other diffusion lines: “VK Glamour Dictators” (ready to wear line) and “VK Young
Generation” (mass production line) (Table 1).New diffusion lines mean that company should
entirely change its supply chain strategy as new volatile market (mass production) has its unique
specification and regulation.
The VK Atelier Haute Couture should partially follow the business model(democratization of
fashion or massification of luxury) of fashion giants such as Gucci, Burberry, Prada and many
others. After the expansion of ''fast fashion'' supported by Zara, H&M, Top Shop and others,
aforementioned fashion titans-dictating fashion trends-also recognize the importance of fast
fashion (Hines and Bruce, 2007). Fast fashion is a type of fashion where catwalk ideas are
reincarnated into low-priced fashionable items via effective supply chain (Easey, 2009). The fast
fashion has great potential for further development and now it generates the growth of global
apparel industry(McKinsey&Company,2014). Light industry is emerging industry. Total output
was near $6,4 in 2004(Armenian Apparel and Textile Industry, 2009). The government takes
steps to stimulate the development of this industry.

Table 1. Transformation of VK from Haute Couture to

Mass Production
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Source:author

11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

PESTEL Analysis

L
E
E

S
Fragile State Index shows that
political stability in Armenia
most of could be detracted by
conflict betwenn national and Economic Growth-3,4% in 2014 Population 3,056,382
T

local elites, population Business Climate increased by Average Monthly per Capita
displacement and Environmental
Expenditures
law of the
0,8% in 2014 Republic Armenia is
refuges,corruption and Age structure: 
counterfeit elction Nominal wages of wokers overarching codes: Law of
process(Foreign Policy, 2013). increase(8,3%) in 2014 -public 0-14
the years: 19.1%
Republic (male on
of Armenia
sector(9,0%) and private 312,955/female
nature use and nature272,065) 
Posibillity to renew conflict over
Nagornho-Karaback Assector(7,3%)
the entire cycle of 15-24 years: 15.2%
protection fees, Law(male
of the
CBAmanufacturing:
light turned into tight monetary 236,317/female
Republic of Armenia 228,943) 
on
EEU memebrship could create policy inmaterials,
order to mitigate dram 25-54 years: 43.5% (male
new opprotunities for economy growing Environmental Impact
638,141/female 693,397) 
of Armenia:new investment and selling andrate
exchange fluctuation
final Assessment and
55-64 years: 11.7% others-
(male
Access against other currency
trade to
links(International consumptions-has which regulates all process
161,102/female 195,714) 
Internet(46,3%
Monetary Fond, of2014) Inflation
huge is nearimpact
negative 4,6%(acceptable concerning environemnt.  
65 years and over: 10.5% (male
population)(World on environment the Bank of
target inflation)(Central 128,568/female 193,429) (2014
The Government
Econmic Forum, of Armenia Armenia, during
2014) mass
start to pay attention on light company est.)
2015)
manufacture industry and to production shouldgrowth in 2014
Slower economic Unemployement, youth ages 15-
Mobile
developtelephone
new strategy of has negatively
undertake all impacted on 24(39,2%)(Central Intelligence
subscriptions(112,4s
development which should give banking sector,
measures in order which
to entail Agency, 2015)
ubscriptions/100peop
impetus this sector of economy minimize the negative slower
following consequences:
le)(Social Progress credit and deposit growth, Growth of unemployement
and find new ways of impact on rate(+17,6%) in 2014 provoked
Index, 2015)
developmet. reducing lending -deposit
environment.
spreads. deterioration of living standards of
Mobile broadband
The main activities of population(Central Bank of
subscriptions-
government in this scope aims to Sanction against Russia could Armenia, 2014).
31(subscription/100p
encourage companies in order negatively impact also on
economy sectors-transportation, Higer education:
eople)
the latter gains access to finance
and markets (Ministry of light industry, financial, 80% of students from nonpoor
(World Econmic agriculture- of Armenia as there
Economy
Forum, 2015) of Republic of Armenia, households, 18% –poor
2015). is correlation between Russia households, 2% –extremely poor
Due to light industry GDP growth and increasing of households.
is emerging indutry intensity of Armenian exports.
there is not progress Average Monthly per Capita
The depratiation of Russian Expenditures(2013):
any innovation on rouble due to sanctions could
production cycle initiate return of Armenian Clothing and footwear-1650(dram)
migrants and dicreasing money (near US 3,35dollar)
transfer to Armenia which in its Urban population-1404
turn negatively impact on dram(consuption on footwear and
purchasing power of local clothing reduce in comparison
population (International with 2012 (1768dram)(National
Monetary Fond,2014) Statistical Service of The Republic
11

Armenia,2014)
One of the most religious
countries in the world(93% of
population)
 'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

The most important threats for VK company is the exchange rate fluctuations. PESTEL analysis
reveals that government implement tight monetary policy in order to mitigate dram exchange
rate fluctuations. The company in its turn should insure itself against local and foreign exchange
risks during importing materials from Italy or other countries. The hedging helps company to
reduce exchange risk (Hill, 2009). The other pivotal economic aspect are loans which directly
connect with company activities. As a rule, low-interest loans has great potential to stimulate
development of business environment and to attract new investment. But since slower economic
growth has entailed the reduction of lending deposits, company should most of all pay attention
on this problem. The latter could create barrier for further development of VK firm (Cavusgil,
Knight and Riesenberger, 2008). Rouble depreciation also brought different problems. It
reduced the number of transfers in Armenia and in this way has had negative impact on
purchasing power of consumers (Albaum and Due, 2011).
Purchasing Power Parity GDP of Armenia is near 8137 between 2010-2014 (converted to
international dollar)(The World Bank, 2014). This indicator plays crucial role in emerging and
developing economies and shows whole realistic picture. It assists many companies to target
emerging markets (Cavusgil, Knight and Riesenberger, 2008). PPP GDP indicator could serve
as one of important components which help them to target their market. Stratification of
students by household income and expenditure also assists the company to define its segment
and capacity of market. Another stratification by religiosity also gives company opportunity to
make development concerning brand. It helps the company to position itself in new market.
Recent research (Sachar, et al., 2014) found negative correlation between religiosity and brand.
Brands like religious enable the consumers to express feeling of their self-worth). Each brand in
its ways gives consumers opportunities to express their identity in different places and in
various ways. It is the prism through which consumers signals others who they are. However,
this regulation is typical only brands which enable consumers to express themselves
(garments).This overarching research does not its value in different geographic variables,
demand characteristics and materialism. This regulations is constant even covariance:
urbanization, income and education. Thus, research reveal that religious people are adhere to
choose unbranded products, whereas individual in neutral condition choose brand products. The
religiosity enables individuals to express their self-worth which lead to reduction in brand
reliance (Sachar, et al., 2014). The extrapolation of this research helps VK Atelier House to
develop new marketing strategy which take into account the features of aforementioned
research. In addition, as Armenia second religious country in the world it means that there is
high that possibility brand reliance will in low level. It helps consumers to turn into new brand
(VK) with ease.
Populations' widespread access to Internet and mobile telephone enables VK company use
technologies such Internet in order to inform customer's about new product and get applicable
and significant information about consumers' behavior and preferences. The latter also could
reduce the operational cost of company (Hollensen, 2010).
11

Source:Biayni Online Mag

'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Market segmentation and Market Targeting via

new developed brands: VK Young Generation and
VK Glamour Dictators

The ready to wear and mass production give company

opportunities to strengthen their position in local market
and create basis for further expansion in other countries,
particularly, in Italy. The company has great chance to
become one of national brands which is able to compete
with other international giants brand located in Armenia in
''fast fashion” and ready to wear market. As the
government accounts that the absence of national brand is
one of big issues for light manufacturing the company
could use this factor and develop strategy and take steps to
create relationship with government and get support to
develop first national brand which focuses on large-scale
production. The VK firm should choose the target market
for its two new diffusion lines, for VK Young Generation
and VK Glamour Dictators. These two different diffusion
lines should meet the needs of different segments. During
segmentation the company also should take into
consideration that needs of customer are various which
includes product features, type of information about
products, category of outlets, originality and quality of
service concerning the product and image of firm and
product.

Geographic segmentation
The climate in Armenia is highland continental, in addition
the climate is also dry in four seasons. The sunny summer
lasted 4 month-from June to September. During summer the
11

temperatures fluctuates between 22-40 degrees. However,

'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

the evening breezes of mountains cool

temperature.

In contrast summer, springs are short.

The winter has its features, namely
winters are quite cool with abundance
of snow. The temperature fluctuates
between -10-5 degrees and below.
The same climate is typical for
Yerevan. The warmest and driest
month in Yerevan is June, July,
especially, August, wettest months-
May, coolest month-January (World
Weather and Climate Information,
2015). This type of information is
vital for clothing manufacturer. It
helps the company to take into
account weather and climate factors
and create the collection which also
correspondent with local-Yerevan-
climate (Blythe, 2005).

Demographic Segmentation and target

audience

VK firm should focus on young

segment, especially students. VK
Young Generation diffusion line
should serve segment of young people
at age 19-40(around-1211500 person:
women-668500, men-667000). VK
Glamour Dictators diffusion line also
11

should include in its target

'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

segmentation people ate age 15-19 and 40-

44 (National Statistical Service of the
Republic of Armenia, 2009).

Gender differentiation whole collection. The

plays crucial role in proportion of female
clothing and fashion. clothing in each
As a rule the behavior collection should
of women entirely exceed the male
differ from men. clothing as the latter is
Women are more integral part of target
communal-minded and segment. Generally, in
during the purchasing Armenia females react
they do not touch much more quickly in
product which is fashion trends,
typical for men (Kotler whereas the vast
and Armstrong, 2014). majority of males is
These factors and more conservative and
others help company to adhere to certain
develop and establish stereotypes.
integrated marketing
The company during
communication in
segmentation most of
order to promote the
all should make
production in more
accentuate on students
effective ways (Fill,
(total number-
2009). Moreover,
123700) (Higher
gender differentiation
Education in
is also important for
Armenia, 2015). In
VK firm to determine
addition, 80% of
the proportion of
11

students is from non-

female clothing in
poor households, 18%
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

–poor households, 2% –extremely poor analysis of measuring middle class in

households (National Statistical Service of Armenian based on
TheRepublic Armenia, 2014).Quantitative

subjective identification reveals that 78,5% of 1200 respondents consider themselves middle class,
poor-14,8%, reach-6,7%. In addition, only 43,6% of 1200 respondents consider that they could
satisfy all their needs(Melkumyan,2010). Average monthly nominal wages in Armenia is around
158580 dram (near US333.8 dollar) (National Statistical Service of the Republic of Armenia, 2015).
Taking account that income segmentation is important for clothing categories, the company should
classify its consumers based on income variables (Kotler, 2010). VK Young Generation label will
be available at low prices. In comparison this the prices of ready to wear line (VK Glamour
Dictators) will be available at high prices.

Psychographic Segmentation and target audience

Quantitative research (2012) concerning youth's satisfaction with personal life shows that young
people prefer family life-the highest satisfaction (3,6). The other indicators which are close to ‘'fully
satisfied'' condition (4) are communication with friends-3,57, healthy life-style-2,55. In contrast this
the lowest indicators of satisfaction (1-totally dissatisfied) are frequency to visits to sport clubs
(1,86) and travel out of Armenia(1,79) (United Nations Development Program, 2012). The style and
design of each production line should reflects the features of personal life and interests of customers.

The next quantitative research touches some aspects of youth life, particularly, frequency of visits to
place of leisure. The most preferable places of visits are friend's home (every day-male 30,7%
female 7,4%, 1-2 times a week male-45,9%, female-35,9%), cafes, clubs, restaurants ( 1-2 times a
week-male(30,9%), female(11,2%), 2-3 times a month-male(20,9%), female(17,7%)), go for a walk
in Yerevan city (every day-male/female(19,9%), 1-2 times a week-male/female(36,2%)),
participation in holidays in Yerevan(once a month(26,3 %) or 2-3 times a week (34,6%).(United
Nations Development Program, 2012) Characteristics of media usage demonstrates that the vast
majority of youths prefer Armenia TV channels-83,6% (every day-average duration of usage in
minutes(180min.), Internet entertainment sites-30,5% (every day- average duration of usage in
11

minutes(near 124,5 min.), internet social networks-47%(every day-150 min.). The press and
magazines are not popular among youths. Furthermore, the vast majority of young people use social
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

networks as a way of communication (50%) with relative living abroad and information sources
(34%) (United Nations Development Program, 2012). Based on variable of media usage the
company should focus on internet, TV and billboards advertising. These variables give VK firm
opportunity to identify and reveal features of segment comprehensively and thereby differentiate
itself from competitors such as Zara, Next, Gap, Mango Debenhams, Massimo Duty, Motivi,
Benetton, Promod, Emporio Armani, Rio Gallery and La Galleria -distributor of many brands,
located in Armenia. Market segmentation enables company to gain strategic advantages in
comparison with competitors. It also help to develop appropriate strategy which aim to cramp
competitors via relative costs, effectivity and effectiveness of other actions
(Easey, 2009)

Targeting market

The company should implement multiple segmentation as each diffusion line

has its certain segments. In this way company could satisfy the needs of
different segments (Gilligan and Wilson, 2009). For example, VK Young
Generation label focus on young people ate age 19-39 with accent on student.
In contrast this VK Glamour Dictators diffusion line focus on the same
segment and includes also teenagers and young adults at age 15-19. In
addition, VK Young Generation features ready to wear collection which means
that the products of this label are more expansive and focus on segment with
high income. Multi-segments strategy enable the company to diversify risks
and gain synergy effect from market specialization (Kotler and Keller, 2012).
As many fashion brands VK brand also should have its garment category,
production line, style which in their turns should have width and depth
(number and variety in each range)(Easey,2009). Gaining reputation of reliable
brand among its customers company could offer additional products such as
accessories and other products. In this way company could achieve synergy
effect. Multi-segment strategy also imply intensification of competition between two labels,
economy of scale in advertising, merchandising and distribution. However, VK brand also should
avoid of cannibalization as happened with D&G in relation to Dolce & Gabbana (The Wall Street
Journal, 2009).
11

Source: Zara
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

“Seeds” of VK brand Architecture for three-year plan and beyond or how to cause panic among
competitors in more effective branding strategy
Mass production in form of fast fashion means that VK brand should be transformed from
''niche brand'' into ''mass brand''. VK brand is well-recognized in narrow circles such as actress,
officials, singers. VK is positioned as luxury brand which focus on defined segment.
Turning into mass production and opening new diffusion lines-labels- means that company should
position new brands. Repositioning helps company to send new message about company to broad
audience. As company offer fast fashion at affordable price under brand VK Young Generation and
new ready to wear line under brand VK Glamour Dictators it should avoid from competition during
penetration (Pride and Ferrel, 2013). Otherwise it could collide with competitors such as Emporio
Armani, Ralph Lauren, Massimo Duty, Zara, Benetton and others. This type of positioning is
tactical step in order to avoid collision with many competitors.
However, after short period of time company should be positioned directly against competitors
based on low cost of product and differentiation strategy, innovative marketing (Whalley, 2010). It
will be crucial part of flank attack strategy.
Brand recognition via new labels: VK Young Generation and VK Glamour Dictators will be
first step for VK's marketers (Kurtz, 2008). The company should develop new brand mark which
aim to indicate the exclusiveness of brand and consumer who wear it (De Pelsmacker, Geuens and
Van der Bergh, 2013). New slogan could tell story behind brand (Pride and Ferrell, 2013).
''Simply, be with us, be young and be in fashion trends''.
''Be with us, be yourself''
Aforementioned slogans helps to position brand and send pivotal message to customers in order to
demonstrate differences between VK brand and competitors (Kotler and Armstrong, 2014).
Associations also are very important factor for brand. Thus, VK should have its brand face. It will
be more advisable if Henrikh Mkhitaryan (HM)-football player of Borussia Dortmund-with Lusine
Tovmasyan represent brand. HM has great reputation not only among customers of target segment
but also among the vast majority of Armenians. The associations such as success, fame, reputation,
positivity connect with HM could indirectly transferred to the brand (Kotler and Keller, 2007).
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

VK will be a manufactured brand developed and promoted by VK shops or boutiques. It

means that company should develop integrated marketing strategy. The company also should
provide pricing, distribution and communication of brand (De Pelsmacker, Geuens and Van der
Bergh, 2013). Thus, the company should open two new shops: one for VK Young Generation and
the other for VK Glamour Dictators labels.
Internal branding also should be the part of brand strategy. The employee of VK
organization should carriers of these values. The internal marketing should resonate in the same
level as external marketing.

Brand strategy of company also should display the idiosyncrasy of both labels: VK Glamour
Dictators and VK Young Generation and based on this make relationship with customers. First
brand should instill self-concept attachment between customer and products. It should help
customers to identify themselves with product. The mission of second brand in this scope is to instill
love and self-concept attachment between customers and products. The customers should have some
passion concerning this brand. This approach makes its significant contribution on sub-branding
process, namely-brand differentiation of brand product for desired target groups (Solomon, Marshal
and Stuart, 2012).
Sub-branding should be the part of comprehensive branding which increase the effectiveness
of branding.
Comprehensive branding means that company should reconcile integrated marketing
communication (IMC) with total quality management (TQM). Collimation of these processes
enable VK firm to get vital information about consumers via consumers or consultants and based on
this information design manufacturing process and customer relationship. TQM during all
processes-from manufacturing to the consumer-should provide the integrity of brand as perceived by
customers (Rajagopal, 2007).
The brain construction like the hierarchy of neurons where each part or modules of brain
processes various type of information. However, constellation of these modules are part of three
major components: cerebrum, cerebellum, and brain stem which manage 3 categories of
information: Knowledge-characteristics of object, name, color, shape
Experience-information concerning to the way an object is used or experienced
Emotion-affective and emotional information about an object or idea
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Thus, the most important task for VK brand strategy is the integration of information in specialized
brain network-mental-workspace (interoperability and interconnectivity of 3 modules of brain)
which plays crucial role for complex cognition. After the integration (information is pulled from
each of three modules) the information receives shape of representations. The marketing department
also should clearly develop the identity of brands (name, marks, slogan and other attributes) in order
to pull information from each of 3 modules easily and clearly. The brand must directly come in
contact with knowledge, emotion and experience. This process provide the dominance of brand in
specialized brain network of consumers. The company also should choice appropriate marketing
message which correspondent with brand identity. During developing marketing message or
selecting particular form of marketing communication tools marketers also should take into account
the place, time and consumer's mindset and motivation. Implementing all these processes in proper
ways company great could influence on consumers decision making concerning brand (Millward
Brown, 2007, p. 2).
Integration of VK Brand

Cerebrum (module)
''mental workspace''

Cerebellum (module)

Source:
Brainstem (module)

The further research conducted by Millward Brown (2009) reveal that physical material generate
more emotional processing than virtual-internet or TV ads. The latter is pivotal for memory and
brand associations. The physical object influence on right retrosplenial cortex and increase activity
in the cerebellum. The first process emotional stimuli and memory. Cerebellum in its turns increases
motor activity. Based on this VK should opt fitting marketing communication tools which could
11

provoked emotional activity in more effective ways.

'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

The company should synchronize representation of brand-pulled together define group of

neurons (3 modules, which manage 3 type of information: knowledge, experience and emotion)-
with flank attack strategy.

11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Implement ZMET to make improvements in the Total Customer Experience

Aforementioned researches enable VK firm to develop appropriate product and brand which
correspondent with customers' needs. It also helps to make applicable and significant improvements
in Total Customer Experience and exceed competitors by various parameters such as meet
customer's needs and expectations. Implementing Zaltman Metaphor Elicitation Technique (ZMET)
firm could improve deeper understanding of connection between brands and consumers in
subconscious level. ZMET based on 7 deep metaphors-balance, journey, transformation, container,
connection, resource and control-assists VK's marketing department to understand and elicit
unconscious thoughts and behavior of customers. These metaphors are universal for each consumer's
mind. These metaphors inside customers' mind create and shape thoughts (Zaltman and Zaltman,
2008).

11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

VK's marketers could

use transformation
during ads to
demnostrate that VK
"Balance VK could activate brand could make its
customers
"helps VK brand to coonection fashionable or only
understand the metaphor for make them happy.
customer's consumers provide
thoughts and connection
feelings about between fashion
glamour(VK VK could use trends and
Glamour slogan which send consumers'
Dictators). message based on emotion.
"control"metaphor
As journey rooted in to control some VK could use
customer awareness aspect of their life "Container"
of time, evolution, via their brand. metaphore in
the firm could use shape of clothing
this factor and help to construct new
customer to persona or help
experience journey, Via ads VK firm customers to
namely to shop at VK could show its express
boutique. customers that themselves.
they are resources
to help acheive apt
emotional
condition.
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Source:
These metaphors enable company to realize customer-centric marketing concept and certainly,
position new products in proper way, design more appealing boutique and shop environments. In
addition, marketers should identify deep metaphor and know in which way activate metaphor:
positively or negatively (Covington, 2012). All these actions could improve customer experience
and even bring it to perfection.
This type of deep investigation of customers help the company to design brand which must
emphasize and reinforce the exclusiveness and uniqueness of customers. Identification of brand help
customer to architect the self-perception. The brand also should be optimal which means that
customers should be sure that offered product is the best in its category. Certainly, the continuity
also should be the integral part of brand's hallmarks. The brand should create relationship with
customers and based on this continue to satisfy their needs and expectation The VK's brand physical
and emotional components such as slogan, associations, emotional connection, logo, face of brands,
image should, unique way of communication, image of quality should perform hedonistic function
(Kapferer, 2008).
All these functions and characteristics of brand make improvements in total customer experience.

11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Digital Marketing

Based on PESTEl analysis the growth of Internet and mobile broadband subscription in Armenia has
provided opportunities for marketers of VK' firms to create interactive relationships with consumers. Via
digital marketing marketers could achieve customers via various digital channels: websites, applications and
social networks and other digital media (Pride and Ferrell, 2014).

Thus, two labels have to adapt to next generation technology. For example, company could integrate new
technology such as electronic shelf labeling, digital promotional displays which help to promote products in
more effective ways and add new kinds of values for consumers. Developing multi-channel digital marketing
strategy integrated with traditional communication channels both labels could affect every part of the
consumer decision making: information gathering, evaluation and purchasing (McKinsey & Company, 2011).
Thus, interactive bus shelters and billboards hell company to attract customers attention and even give them
opportunities to play some games or win prices such as e-coupons, accessories via smartphones or tablets.
High- tech and modern designed pavilions by VK firms located near universities help company to promote its
products. For example, students gathering in pavilion could connect to free-Wifi if they download mobile
applications of VK brand. Moreover, pavilions equipped by Smart-TV enables students to listen music or
watch videos. VK Glamour Dictators label could 3D hologram technology for its boutique. Via 3D hologram
technology boutique could project different scenes, for instance, lost little girl asks for help passing people to
find her mother. Thereafter, she bring people into the VK’ boutique where her mother waits her.

Both label’s multi-channel digital marketing strategy also should promote brands via social network,
particularly, Facebook as social media usage statistics (using mobile) reveal that 95,97% of users prefer
Facebook (Stats Monkey, 2015).Social Networking Sites such as Facebook enable VK brand to create
relationship with its customers and help them to feel more connected with VK brand.

The recent research of Nielsen(2014) found correlation between online searching and shopping, namely
browse percentages and buy percentages of clothing, accessories and shoes is equal. Thus, both labels should
develop their own website and application optimized customized for consumers taking into account the
features of consumers and trends in digital marketing. For example, the content of webs and applications
should also reflects customers’ features. Recent researches conducted by Millward Brown Digital (2015)
show that smartphones' touchpoints play crucial role on a purchase process and help to make differentiation.
For this reason, both labels should base on big data and make intelligent decision, in addition they also need
to understand consumer dynamics: right message, touchpoints and screen. Investment in digital marketing
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

give both labels opportunity to increase sales, provide better customer service, lower
costs, loyalty higher consumer awareness (Boston Consulting Group,
2012).

Product

Company should cooperate with Naytex and Cotton Yarn

Company in order to get appropriate materials for production. In
addition company also could import materials from Kazakhstan,
Belarus and Kyrgyzstan at low transportation costs as Armenia
is member of Eurasian Economic Union. Implementation of
innovations and new technologies in light manufacturing enable
Naytex and Cotton Yarn Company and others to design
appropriate materials for VK firm. Using local materials enable company to reduce
operational and logistic costs which make it more competitive in local market.

Source: INK 361 As VK firm also has its haute couture atelier house it helps to translate new
catwalk ideas into lower priced ''fast fashion'' items in more effective ways . In addition, new
designed website’s platform helps company to offer two or three production line in form of sketch
for customers of VK
Young Generation
A tt rib u te s:P ro te cti o n , M o d e sty , A d o rn m e n t, D e sig n -
label. The customers S ty le (fu sio n o f fa sh io n tre n d s v ia le n se o f V K C o u tu re A te lie r
could vote for any H o u se ), C o lo r, T e x tu re , S ilh o u e tt e (E a se y, 2 0 0 9 )
production line
launching. The
P ro d u ct D iff e re n ti ati o n : M a ss cu sto m iza ti o n fo r tw o lab e ls,
production line which au g m e n te d p ro d u ct
gets the high results C la ssifi ca ti o n :S p e ciality G o o d s(K o tle r a n d K e lle r,2 0 0 7 )
will be manufactured
by VK brand. In
Packaging: ecolabel signal to customers that it is an environmentally
comparison this, VK friendly product packaging and prodcut (Cateora, Gilly and Graham,
2011) Well-designed package also could serve as a functional and
Glamour Dictators fashion handbag
offer sketches based on
11

which customer could. Designing and developing new products in this way company could
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

appreciate customers' perception in more effective and efficient ways.

Thus, these model of manufacturing create high-perceived value Source: author

for customers enable the company to offer only specialty goods which entirely differ from
competitors' offers (Easey, 2009). The quality of VK's products should correspondent with

International and European standards as without it company could not position itself in
market and satisfy the needs of customers. Performance and conformance quality should be
inseparable part of VK's product (Cateora, Gilly and Graham, 2011). VK Haute Couture Atelier
House has great potential to add more features for products of two labels.

11
 V
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Price

The expenses concerning the fabrics should be moderate as high fabric cost
charged by complicated construction, tailoring could be the cause of high
production cost which entails high market price. It will be more advisable if at
first period of time company order the fabrics in order to avoid additional
expenses. In addition fabrics should be used in multiple designs. (Gehlhar, 2008).
Implementing vertically integrated design-test, production, delivering, sell-
enables the company to have efficient supply chain which aim to reduce the cost
(Kennedy, Stoehrer and Calderin, 2013). Process flexibility-ability of fabrics to
produce various class of garments and shoes simultaneously- and inventory with
robust optimization model could increase the effectiveness of supply chain. In
addition highly flexible fabrics could satisfy high variability demand (Simchi-
Levi, Wang and Wei, 2015). Reengineering the business processes, especially
supply-chain-company could provide lowest-cost goods to the customer (Hill,
Jones and Schilling, 2013). During reengineering VK's firm should integrate just-
in-time manufacturing and lean manufacturing system in order to increase the
efficiency and effectiveness of supply chain (Sterman, 2000). The company should
has its internal POS (point of sale) software which enables the company to
monitor the popularity of sold production line and based on this type of
information headquarter of VK firm could order appropriate number of clothing
materials form suppliers (Sterman, 2000). All these activities and processes enable
company to elaborate flexible pricing strategy.
Taking into consideration level of competition, innovativeness of product, market
characteristics and company characteristics-VK should use penetration pricing
strategy for VK Young Generation (mass production) for three-year plan. The
market in its turn sets the effective price for VK's products (Cateora, Gilly and
Graham, 2011).
The lower price will be additional value for customers. Moreover it weakens the
position of competitors in market if they could not react quickly. The lower prices
also aim to attract more and more consumers. The company needs to analyze the
cost of producing and based on this draw parallel between market price and its
selling price. The next step will be evaluation of competitors' prices. The gap
between company's price and competitors' prices should not be large (Blythe,
2005). Implementing aforementioned pricing policy company should avoid from
competition at first period of time.
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Vahan Khachatryan
$160

Dolce&Gabbana
$745

Emporio Armani
$645

Dior $805

Burberry $595

In comparison with VK Young Generation, VK Glamour Dictators label should use other pricing
policy as it represents products from ready to wear level and focus on upmarket young fashion.

Based on brand features, information concerning customer experience, effective

manufacturing and hallmarks of marketing communication the company should use customer-
derived policy. This policy allows company to reveal the attitude of customers connecting to value
of products and on this basis price the product (Bennett, 2010). New developed websites platform
and unique method of product promotion enable company to determine customers' preferable price
and design individual product for each customer.

This policy also enable VK Glamour Dicators label to offer the most affordable price in comparison
11

with competitors in ready to wear level. For example, the sneakers of VK brand cost $160, whereas
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

the prices of competitors Emporio Armani, Burberry, Dolce and Gabbana and Dior distributed by La
Galleria Boutique is significantly high. These two different policy should comply with firms market-
share objectives. This help company to control a specified share of market (Kurtz, 2008).

11
 V
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
Promotion
the way you live.' - Gianni Versace

The expenses concerning the fabrics should be moderate as high fabric cost
charged by complicated construction, tailoring could be the cause of high
production cost which entails high market price. It will be more advisable if at
first period of time company order the fabrics in order to avoid additional
expenses. In addition fabrics should be used in multiple designs. (Gehlhar,
2008). Implementing vertically integrated design-test, production, delivering,
sell- enables the company to have efficient supply chain which aim to reduce the
cost (Kennedy, Stoehrer and Calderin, 2013). Process flexibility-ability of
fabrics to produce various class of garments and shoes simultaneously- and
inventory with robust optimization model could increase the effectiveness of
supply chain. In addition highly flexible fabrics could satisfy high variability
demand (Simchi-Levi, Wang and Wei, 2015). Reengineering the business
processes, especially supply-chain-company could provide lowest-cost goods to
the customer (Hill, Jones and Schilling, 2013). During reengineering VK's firm
should integrate just-in-time manufacturing and lean manufacturing system in
order to increase the efficiency and effectiveness of supply chain (Sterman,
2000). The company should has its internal POS (point of sale) software which
enables the company to monitor the popularity of sold production line and
based on this type of information headquarter of VK firm could order
appropriate number of clothing materials form suppliers (Sterman, 2000). All
these activities and processes enable company to elaborate flexible pricing
strategy.
Taking into consideration level of competition, innovativeness of product,
market characteristics and company characteristics-VK should use penetration
pricing strategy for VK Young Generation (mass production) for three-year
plan. The market in its turn sets the effective price for VK's products (Cateora,
Gilly and Graham, 2011).
The lower price will be additional value for customers. Moreover it weakens the
position of competitors in market if they could not react quickly. The lower
prices also aim to attract more and more consumers. The company needs to
analyze the cost of producing and based on this draw parallel between market
price and its selling price. The next step will be evaluation of competitors'
prices. The gap between company's price and competitors' prices should not be
large (Blythe, 2005). Implementing aforementioned pricing policy company
should avoid from competition at first period of time.
Promotion is one the most important part of marketing mix. Consequently,
company needs to make accentuate on various communication tools which in its
turns should be based on target audience’features.
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Aforementioned Integration process of VK's brand

and ZMET techniques enable company to design
effective communication campaign which should
achieve and evaluate cognitive, affective and
behavioral responses of consumers.

For this reason, VK's company should integrate

combination of POES-(paid, owned, earned and
shared media) channels for each labels in order to
be heard by customers

VK's firm should use TV advertising as the vast

majority of young people prefer to watch TV,
especially Armenia TV (Armstrong and Kotler,
2015). Thus, it will be reasonable if company
advertise product in Armenia TV, especially,

during program focus on young audience. The

recent research-consumer neuroscience-based
advertising-conducted by Nielsen (2015) reveal that
15 seconds TV commercials are more effective
than 30 sec onds. Thus, company could use 15s. TV
commercials. However, company most of all
should focus on innovative communication tools.
The company should design bus shelters by its
unique style such as wardrobe located close to
universities and other places where flow of students
or young people is intensive. For example, young
people waiting for the bus could take part in
interaction games via their smartphones or tablets
and win brooch of VK's brand or connect to free
11

Wifi. They also could download VK's new apps for

'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

further shopping. VK's brand, especially, VK Glamour Dictators label should use word of mouth
marketing in order to connect with early adopters and after than early and late majority groups and
finally to laggards. Word of mouth interactions is a customer-to-customer recommendations which
is influential and personal(Kotler and Keller, 2012).The fashion company should recruit students
from different universities and wear them VK's clothes and shoes of hot trends in order they promot
these trends. They should be student ambassadors' of VK brand (Kotler and Keller, 2012). The
students wearing fashion clothes and shoes could arouse desire (induce ''mirror neurons'') of other
students to buy clothes of this brand. Mirror neurons in human frontal cortex and temporal could
help people to imitate the other people (Lindstrom, 2010).

The company could promote VK Glamour Dictator label via Spring/Summer and Autumn/Winter
fashion shows. E-tailing helps label to promote its collections immediately after catwalk and enable
consumers to buy them before clothes and footwear are available in some store or boutique
(Renfrew and Renfrew, 2009).

The personal selling is the other important part of promotion mix which focus on making
sales and building customer relationship. Thereby company should develop sales force strategy
which aim to recruit, choice, train, supervise and assess salespeople. The latter should sell product in
creative ways, gather information, which should complete date from POS software, and build
relationship with customers in VK’s firm (Armstrong and Kotler, 2015).

The company should select the most optimal and effective tools such as mobile coupons or
discounts for sale promotion in order the latter enhance the consumer purchasing (Kurtz, 2010).
Interactive online sales promotion via VK's new design websites and apps could provoke behavioral
response of customers. Interactive online direct marketing on platforms of website or app could
create individual relationship with target audience and generate transactional responses by
consumers. This type of interactive sale promotion has great potential to provide connection
between brand, product and customers (Fill, 2009). Customers of VK Glamour Dictators could
choice combination of different clothing sketches offered by brand and order them. They could get
them in a week with home deliver. Customers of VK Young Generation could get opportunity to
vote offered two-three production line every six months and buy clothes from production line
elected by majority votes in VK's boutiques within a month.
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Finally, company must integrate objective and task method for promotion budget in order to define
promotion and certainly estimate the cost of performing.

11
 VV
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

Place
After Spring/Summer and Autumn/Winter VK Couture or ready to wear shows, company should
start manufacture them. The factories of two labels should be located in Gyumri. However, some
part of headquarter of VK’s company located in Yerevan should perform follow function: draping,
flat pattern making, fabric manipulation, dart manipulation, digitizing, grading, marker making
(Kennedy,
Conclusion Stoehrer andCalderin,2013). The manufacturing process will be performed by fabrics in
Gyumri. However, headquarter also must be able to fulfill orders of e-tailing and websites,
Developing
optimized two ofnew
for customers brands
VK Glamour VK Label.
Dictators Glamour It meansDictators andmust
that headquarter VKprovide,
Young
cutting, stitching, fitting and finishing cycle. After manufacturing, garments and footwear should be
Generation
distributed in VK'sVKstore
brand
and could penetrate
boutiques. However,new market.
headquarter alsoReengineering enables
could perform, Vertically
company
integrated to develop
system, TQM, justcompetitive
in time policy,supply
flexiblechain andinventory
fabrics, new marketing
optimizationstrategy.
models
provided by POS and websites' orders help the company to design
Implementing lean manufacturing system, flexible fabrics model, TQM and efficient supply chain, especially
manufacturing process. Moreover, this system should help company reacts more quickly than its
new marketing
competitors, strategy
new designed company
styles and hot trends could
shoulddevelop newinproduct
be represented stores andand brand
boutiques
which
sooner thanaim toBenetton,
Zara, surpassMassimo
the offers
Duty,of competitors
Emporio Armani and andotheroffer new(Trade
brands products
Gecko,to
2014). Company should start production process after biannual fashion fairs in Paris, London,
customers
Milan, New York, which
Tokyo,entirely differ from
where world-wide customers.
recognized brands andExtrapolating
designer presentsknowledge
their new
and methods
collection (based
ideas six months aheadon neuroscience's
of the season(Easey, 2009). researches)
The store of VK concerning brand
Young Generation
will be represented
design in Dalma Garden
and integration andmall, whereinto
taking concentrated
account most
the of firms focus on
features andfastneeds
fashion: of
Zara, M&S, Massimo Duty. In contrast this the boutique of VK Glamour dictators will be located
incustomers
North AvenueVK brand
where could offer
concentrated new product
the brands which
focus on upper surpass
market: EmporiotheArmani,
expectation
Ralf
and needs
Lauren, of customers.
Philip Plain, Burberry andImplementing
other brands. TwoZMET techniques
labels also could meatboth brands
customers’ could
needs in
virtual market place where websites and applications are optimized for customers.
make significant improvements in total customer experience. Digital
The atmosphere of store and boutique should be unique. In addition company must create
marketing
atmosphere thathelp company
enhance torather
the clothes, integrate
than being newled technologies
by them. They also and based
should onthe
refigure this
design
store to targetnewyoung.communication channels.
New designed environment of storeNew also design and element
could be crucial optimized
of
marketing
applicationsstrategy,and
namely it help VK’s
websites two many
with labels tocapabilities
make differentiation (Tungate, 2005).
and options, The
hich-tech
latter could affect people's purchasing behavior in positive way. Combination of lighting,
pavilions,musicinteractive
temperature, bus-shelters number
and scent with comfortableness, and andbillboards,
essence of consumer, 3D recognition
hologram
bytechnologies, eco-centric
identifiable non-irritating delivering
environment, system,
minimalist well-designed
environment, fixtures boutique
and displays,and
merchandise suggestions could positively effect on consumers’ purchasing behavior (Hines and
store, word of mouth marketing with coordinated and combinated
Bruce, 2007). Company should deliver products via well-designed bicycles and Mono Tracer by
VKmarketing
style. This typemixof strategy enable
delivering shows company
that company adheresto tocreate intellectual
environmental and
responsibility
emotional relationship with customers and based on this increase loyalty of
policy.
Thus, each element
customers of marketing mix
in short-period ofaim to satisfy customers offering superior products which
time.
entirely differ from competitors' offers. Combination of actions with could build customer loyalty
Source:INK361
(De Pelsmacker, Geuens and Van Den Bergh, 2013). The coordinated and sequential actions of
marketing mix provided various communication tools help buyers to discover information about
VK's product, understand it in detail, try it and subsequently become regular or loyal customer
(Wilson and Gilligan, 2005)..
11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

11
'Don’t be into trends. Don’t make fashion own you, but you decide what you are, what you want to express by the way you dress and
the way you live.' - Gianni Versace

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