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BOTTEGA VENETA

ANALYSIS REPORT

A PROPOSAL BY DEGREE UNIT LEADER


Maraya Antonova Fashion Management Cigdem Gogus

STUDENT NUMBER UNIT WORD COUNT


20018122 Strategic Management 2253
TABLE OF CONTENTS
Table of contents .....................................................................p.2
List of figures.............................................................................p.3
1. Introduction ........................................................................p.4
1.2Background & Overview ......................................................p.5
1.3 Aim & Objectives,Limitations & Sources...........................p.6
1.4 Timeline of Bottega Veneta's History................................p.7
2. Case Analysis......................................................................p.8
2.1 Brand Identity .....................................................................p.8
2.2 Kapferer Prism....................................................................p.12
2.3 Internal & External Analysis..............................................p.13
2.3.1 Swot Analysis....................................................................p.13
2.3.2 CBBE Model......................................................................p.14
2.4 Diagnosis..............................................................................p.15
2.4.1 Consumer Profile .............................................................p.16
3.Recommendation................................................................p.17
3.1 Goal............................................................ ......................... p.17
3.2 Bottega Veneta Beauty ......................................................p.17
3.3 Bottega Veneta Beauty Concept... ...................................p.18
3.4 Marketing............................................................................p.19
3.4.1 Positioning & Timeline....................................................p.20
3.4.1.1 Positioning Map............................................................p.20
3.4.1.2 Strategic Timeline........................................................p.21
3.5 Pricing Strategy ................................................................p.22
3.6 Risk Assessment................................................................ p.22
4. Conclusion .......................................................................p.23
1.2 Reference list. ....................................................................p.24

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LIST OF FIGURES

Figure 1: Aim&Objectives, Limitations & Resources.............p.6


Figure 2: Timeline of Bottega Veneta's History.....................p.7
Figure 3: Kapferer Prism.............................................................p.12
Figure 4: SWOT Analysis.............................................................p.13
Figure 5: CBBE Model..................................................................p.14
Figure 6: Consumer Profile........................................................p.16
Figure 7: Galaxy Model................................................................p.17
Figure 8: Bottega Veneta Beauty Palette Prototype............p.18
Figure 9: Bottega Veneta Beauty Lipstick Prototype..........p.18
Figure 10: Bottega Veneta Beauty Foundation Prototype...p.19
Figure 11: Positioning Map.........................................................p.20
Figure 12: Strategic Timeline.....................................................p.21

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EXECUTIVE SUMMARY
(theimperession, 2021)

Faced with the risk of being viewed


as predictable and out-of-date,
luxury businesses must develop
innovative ways to provide new
brand experiences while engaging
both existing and new target
customers. This report explores the
luxury label - Bottega Veneta,
analysing its identity and
performance in order to provide a
strategic recommendation after
carefully assessing the brand's
performance issues and failures.
Therefore, a proposal for product
diversification through the
introduction of a horizontal
extension, has been established.
The introduction of a makeup line
Bottega Veneta Beauty, will aim to
generate a new strong and distinct
market presence. A makeup
collection that aligns with Bottega
Veneta's heritage and fundamental
values, while bringing a fresh and
innovative viewpoint that will create
opportunities to enter new existing
markets.

BOTTEGA VENETA

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1.INTRODUCTION
(Sims, 2014)
In a world that is becoming exceedingly complex, individuals
and organisations encounter a growing number of
challenges when building and managing a fashion brand.
According to the book "Strategic Brand Management,"
differentiation through brand equity is essential for
establishing a long-term competitive advantage (Keller et al.,
2012). Many believe that luxury branding will never again be
what it used to be: a separate economic sector dedicated to
the wealthy, characterised by high prices and magnificent
physical establishments (Kapferer, 2014). The natural
evolution of luxury presents significant challenges for
marketing strategists. Premium brands must stay ahead of
luxury consumers by discovering fresh and unique ways for
them to communicate their desires(Atwal & Williams, 2017).
Hence, the ultimate objective of this report is to enable
Bottega Veneta establish a strong and distinct market
presence that not only attracts but also maintains loyal
customers, by recommending a new strategy for
diversification of products through the introduction of a new
product line. This would be achievable by introducing a new
brand extension -Bottega Veneta Beauty and the
implementation of a digitally-focused marketing strategy.

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(Williams & O'Connor, 2022) (Disko ) (Matthieu Blazy 2022)

1.2 BACKGROUND & OVERVIEW


Bottega Veneta, founded in 1966 and rooted in Italian
craftsmanship, earned a prestigious name on the strength of
its sophisticated style, unique leather goods, and crosshatch
pattern. Since 2019, the company has been led by CEO
Bartolomeo Rongone and provided menswear, womenswear,
accessories, and homeware, designed by Daniel Lee, who was
the creative director until 2021 (Team, B.F., 2021). Bottega
Veneta became a member of Kering in 2001, a global luxury
group founded in 1963 that also features Gucci, Saint Laurent,
Balenciaga, Alexander McQueen, Brioni, Boucheron,
Pomellato, DoDo, Qeelin, as well as Kering Eyewear (Kering,
Discover kering). Following Daniel Lee's unexpected
resignation from Bottega Veneta, Kering appointed Matthieu
Blazy, a recognised behind-the-scenes character, as his
replacement (Williams, 2022). Matthieu Blazy presented his
first collection for Bottega Veneta in February 2022
(Behrmann, 2021 Drapers).

“In my design, I’m obsessed with geometry of form and purity of material - this
process of elimination and stripping back to the essential”
-Daniel Lee
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1.3 Aim & Objectives, Limitations &
Sources
Figure 1:

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1.4 TIMELINE OF BOTTEGA VENETA’S
HISTORY
Figure 2:

01 02 03
01
1966 01 2001 2006
Bottega Veneta was founded Bottega Veneta was acquired Bottega Veneta implemented
in Vicenza, Veneto, by by the Gucci Group (Kering). a school to train leather
Michele Taddei and Renzo At the time, Tomas Maier artisans, called "Scuola della
Zengiaro took over design and became Pelletteria".
a creative director of the
brand.

04
04 05
05 06
06

2018 2021 2022


Daniel Lee takes over the Bottega Veneta announced Matthieu Blazy was
position of creative director. the departure of Daniel Lee, nominated for Designer of the
and the brand appointed Year in the 2022 BRITISH
Matthieu Blazy as the new FASHION AWARDS.
creative director.

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2. CASE ANALYSIS

(Namida, 2022)
2.1 Brand Identity
Bottega Veneta is currently one of the most popular brands
that specialises in producing and distributing quality leather
products. (GlobalData , Bottega Veneta SA Overview [1] ) As
indicated in the “Journal of Global Fashion Marketing”, not
only is quality ensured by the production of the items, but
also by the high quality of the raw materials (Gorp et al.,
2012). According to Forbes, its products are devoid of logos
and flashy branding, but feature distinctive designs and
crafting processes. The "intrecciato" design is a
distinguishing feature of Bottega Veneta (Shirley, 2022).
With the help of the former creative director- Daniel Lee, The
Bottega Veneta became one of the industry's most
successful brands (Lectra, 2021). The Italian luxury fashion
company was valued at 4.96 billion euros on January 1, 2022,
according to Statista. Moreover, in 2020, the brand had 261
physical stores throughout the globe(Statista, 2023).

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(matchesfashion)

Fashion
The company offers handbags, purses, wallets and other leather goods for
both men and women. It provides, among other products, accessories,
footwear, jewellery, furniture, and home décor under the Bottega Veneta
name, which are offered through a network of physical stores, franchises
and online stores. Furthermore, the company mainly operates in Europe,
Asia-Pacific, and the United States, but its headquarters are in Milan, Italy
(GlobalData , Bottega Veneta SA Overview [2]).

Materials
Traceability of materials is one of the greatest issues facing the fashion
industry. It is also a vital component of the recycling process, which
contributes to sustainability. (Kumar et al., 2017) Kering plans to achieve
complete traceability of its primary raw materials by 2025, according to
their press release on sustainability. In addition, Kering has used its
partnerships with start-ups and laboratories to explore new sourcing
methods and unique raw materials utilising biotechnologies (Disko, Raw
Materials and sustainable sourcing 2022 [1]). Bottega Veneta utilises
predominantly 100% lamb and calf skin in the creation of their handbags
and insists on using only high-quality leather that has been carefully
sourced and tested prior to production (AlexEnglish & Italist, 2022).

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(ALL Bottega Veneta)
"We are redesigning our business to continue to thrive and prosper
sustainably into the future, while at the same time helping to transform the
luxury sector and contributing to meet the significant social and
environmental challenges of our generation.”
FRANÇOIS-HENRI PINAULT
(Disko )
KERING CEO

Bottega Veneta introduces collection


using sustainable cork
Sustainability
material(FashionNews, 2020)
The fashion business is one of the
world's most prominent sectors with
significant negative effects on the
social and environmental ecosystems
(Ozdamar-Ertekin, 2019). As a result, the
luxury sector is experiencing a process
of self-analysis and reinvention of
competitive strategies in light of social
responsibility and sustainability
(Pavione et al., 2016).According to
Mintel, the Kering group has been
striving to make more sustainable
decisions recently. Bottega Veneta has
been fur-free for twenty years, making
it one of the first Kering group brands
to do so.(Mintel, Luxury Goods Retailing
- International 2021). Although leather
is their primary material for
manufacturing , Kering is committed to
ensuring that its leather is sourced in
the most ethical and sustainable
manner, where accountability for the
reduction of negative impacts can be
demonstrated (Disko, Raw Materials
and sustainable sourcing 2022 [2]).

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10

Interiors
Bottega Veneta introduced its first home
collection in 2006. The pieces were
created by Tomas Maier, Bottega Veneta’s
Creative Director. According to BOF, the
German designer was appointed creative
(Martin, Via Borgospesso 5, Milan 2015)

director in 2001, succeeding Tom Ford,


and remained with the brand for
seventeen years (Fernandez, 2021).

After opening their first store on


Via Sant'Andrea and their second
on Via Montenapoleone, the
fashion label Bottega Veneta
launched their third home
boutique in Milan in 2015, as
(Martin, Via Borgospesso 5, Milan 2015)

reported by Vogue. It is located in


a building from the 18th century
and is the first store in the Italian
fashion capital fully devoted to
the brand's housewares (Laura
Bonnet, 2015).

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2.2 Kapferer Prism

The identity of the brand will be further evaluated using Kapferer’s


approach. (Kapferer's Prism)

Figure 3:

(Kapferer, Kapferer Identity Prism)

-no logo -classy and stylish


-signature leather weaving -sophisticated
technique "intrecciato " -timeless
-quality -minimalistic
-unique craftsmanship

-Loyal -Italian made


-Professional - Leather goods
-Exclusive -Quality leather sourcing
-Heritage

-aristocracy -confident
-signature leather weaving -wealthy
- wise -elegant
-classic -intrested in arts
-unique -looking for privacy and comfort

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2
2.3 INTERNAL & EXTERNAL
ANALYSIS
In this section, the influence of the external and internal
environment of Bottega Veneta is analysed. In order to
achieve that, a SWOT analysis is created to assess the brand's
strengths and weaknesses. Moreover CBBE Pyramid Model is
utilised, which outlines what brand equity is and how it
ought to be built, measured, and managed (Keller K.L, 2001).

Figure 4: 2.3.1 SWOT ANALYSIS

STRENGTHS WEAKNESSES
Strong Heritage, craftmanship Little to no social media presence
Innovative Heavy dependence on bag sales
Distinctive Signature Low demand for other products
leather weaving technique - Bottega Veneta ranks 15th globally
Intrecciato among the most recognisable luxury
Quality brands, indicating that brand
High client loyalty among recognition is low, compared to
existing customer base
others.(Statista, 2022 Most
Part of Luxury Group Kering
recognised luxury brands)
Notably low interest in purchase
among the younger generation

OPPORTUNITIES THREATS
Raise brand awareness Strong rivalry in the luxury market
Increase social media visibility Establishing a balance between
Attract a younger consumer trend-following and maintaining a
Implement more digital high luxury image
innovations into their strategy Similar product with lower
Explore potential market pricing on the market
opportunities by extending the
brand's reach through brand
expansion.
Collaborations with other brands

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2.3.2 CBBE MODEL

According to the CBBE model, there are four components involved in


creating a powerful brand: (1) establishing the appropriate brand
identity, (2) creating the appropriate brand meaning through
powerful, advantageous, and unique brand associations; (3) evoking
positive brand responses, and (4) establishing brand relationships
with customers that are characterised by intense, active loyalty (Keller,
2001).

Figure 5:

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2.4 Diagnosis
(ALL Bottega Veneta)

In light of the foregoing research and,


particularly considering the SWOT
analysis, it could be concluded that
Bottega Venetta faces two main
difficulties: the inability to attract
younger consumers and the heavy
reliance on bag for sales. In order to
attract a greater number of younger
shoppers and a larger spectrum of
consumers, multi-channel practices
relate to the utilisation of online and
offline channels. This is a demanded
service especially among younger
customers (Lee et al., 2020).

In consideration of internal and external factors, Bottega Veneta’s consumer


profile and use of current technology are described below.

The clientele of Bottega Veneta are prosperous individuals who value quality,
originality, and luxury. According to "International Journal of Retail &
Distribution Management," luxury consumers seek premium experiences
and rely on product authenticity based on quality, heritage, expertise, and
uniqueness(Brun & Castelli, 2013) The primary market for luxury goods are
aristocratic individuals who have sufficient funding to enjoy their passions
and showcase their status with luxury products. However, a younger
consumer would be more inclined to purchase a more inexpensive item as
opposed to a premium one (Siyao, 2021).

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(Street Style Bottega Veneta 2020) (Street Style Bottega Veneta 2020)
2.4.1 Consumer Profile

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Figure 6:
3.RECOMMENDATION
3.1 Goal
Strengthen Bottega Veneta's appeal among younger consumers
and build a strong, unique market presence that not only attracts
but also sustains new, loyal clientele, while preserving the brand's
exclusivity and tradition.

Introducing: Bottega Veneta Beauty

3.2 Bottega Veneta Beauty


The appeal of brand extensions by luxury companies is
particularly strong (Reddy et al., 2009). According to Kapferer,
brand extensions are even necessary. They are a direct
consequence of competition in mature markets. The aim is to
increase the power of the brand and its profitability (Kapferer, J, &
Kapferer, J 2012 [1]).

The proposed strategy for the creation of Bottega Veneta Beauty


makeup line is a horizontal extension following a Galaxy model.
With the introduction of Bottega Veneta Beauty, the brand will
expand into the beauty sector in an effort to attract new
customers, while also guaranteeing that the new products are
aligned with the brand's heritage and core values. (Kapferer, J, &
Kapferer, J 2012 [2]) The implementation of brand extensions has
become crucial for many business strategies of the majority of
luxury businesses, as it allows the potential to capitalise on the
most valuable asset of a luxury brand, particularly its brand
image, to enter new markets across a variety of product
categories (Albrecht et al., 2013[1]).
Leather Clothing
Goods

Accessories
Figure 7: Galaxy Model
Fragrances

17 Interior
3.3 Bottega Veneta Beauty Concept
The product line will expand into three categories: Eye, Lips & Face.

Eye
Bottega Veneta Beauty will debut with an eyeshadow palette. The colour range
will consist of various tones of beige, brown, red, and green with matte, satin,
and shimmer finishes, in keeping with Bottega Veneta's formal and elegant
aesthetic. The packaging will be made from recyclable glass (cullet) in the
colour green in order to encourage sustainability, while also following the
brand’s signature. In the production of glass specifically, cullet is utilised as a
substitute for virgin raw materials. It increases the efficiency of the glass melting
process and minimises air pollution (Testa et al., 2017).

Lips
There will be ten shades of lipsticks available. The variety of colours will range
from a very pale beige and pink to a dark brown, classic red, and burgundy
shade. The lipsticks will have a creamy, high-pigment consistency that is both
moisturising and extremely long-lasting. The formula will be filled with organic
ingredients such as vitamin A, vitamin E, and avocado oil, since quality will be
the primary concern. The packaging will be be green, have an attractive
appearance, and also will be made from the same recyclable glass as the
eyeshadow palette.

Figure 8: Bottega Veneta Beauty Figure 9: Bottega Veneta Beauty


Palette prototype lipstick prototype

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Face
Following the palette and lipsticks, a foundation line with 22 shades ranging
from light to dark will be created. To achieve inclusivity and diversity, the
colour range will expand in the future to include additional shades that
complement every complexion and skin tone. The foundations will have a
formula, combining coverage and skincare to achieve a radiant finish while
benefiting the skin and adhering to medical standards (Nonni, 2012).

3.4 Marketing
Bottega Veneta Beauty will be
marketed through Word of Mouth
Marketing(WOM). It is a popular
experiential marketing strategy in
luxury retail that aims to create brand
awareness and expand the company's
reach across existing and new target
groups. WOM communication is
especially important for luxury
companies, as reporting of positive
experiences with a brand can boost
Figure 10: Bottega Veneta Beauty
the company's value (Klein et al., 2016). foundation prototype

According to the book "Digital Marketing Strategies for Fashion and Luxury
Brands", electronic commerce (e-commerce) has altered the retail environment
and become a significant component of the marketing strategy utilised by
fashion brands (Ozuem & Azemi, 2018). Social media platforms, digital
advertisements and campaigns will be utilised for the promotion of Bottega
Veneta Beauty, as the Internet has been shown to be a potent force for change
and growth in the world of luxury(Okonkwo, 2010). Moreover, fashion
magazines will advertise the new collection as well, which also will increase the
brand’s exposure.

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3.4.1 Positioning & Timeline

A new product development process incorporates strategic decisions,


such as considering market positioning and strategic timeline
(Guiltinan, 1999).

Figure 11:
3.4.1.1 Positioning Map

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3.4.1.2 Strategic Timeline
Figure 12:

01 02 03

2023 2024 2024


Development and Finalising a draft Product Approval
formulation of Bottega product and
Veneta Beauty goods; packaging;
Establishing the raw Quality and packaging
materials and testing
packaging suppliers

04 05 06

2025 2025 By 2027


Launch of Marketing Product launch Development of more
Campaign products (blush,
powder, mascara and
more foundation
shades)

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(Portraits Bottega Veneta 2019)

3.5 Pricing Strategy


To attract the attention of consumers,
increase market demand and boost the
target population, luxury brands
generate a higher price gradient by
extending and growing their brand and
also sustaining the luxury feeling (Yan, H.
& Qu, X ,2014).

Given that the proposed line extension 3.6 Risk Assessment:


would consist of products made of the
highest quality, the price range will stay While a brand extension may
at the upper end. However, going back to provide a chance to penetrate new
the target audience, Generation Z, they areas, there are risks associated
are more price-driven than brand-loyal with this strategy. A key distinction
and they are more inclined to shift to between luxury and non luxury
other brands just to choose a less brand expansions is the difficulty for
expensive alternative (Berisha, 2019). luxury companies to preserve their
Therefore, a beauty line, whose products image of exclusivity and luxury.
would still be premium but less Luxury businesses face the danger
expensive than Bottega Veneta’s typical of having their image ruined by
product offerings, would be a smart overexposure (Albrecht et al.,
method to attract younger consumers. 2013[2]). The most crucial risk is that
the improper extension can
establish negative associations with
the parent brand (Athanasopoulou
et al., 2015 [1]). In many cases the
possibility of diluting the parent
brand's image is a reoccurring
problem. However, the solution will
depend heavily on the capacity to
effectively perform the extension
(Kapferer, J, & Kapferer, J 2012 [2]).

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4.CONCLUSION
Luxury brands are broadening their product lines in an effort
to become the most popular destinations for luxury goods.

fashion
Almost a third (32%) of US luxury consumers, according to
Mintel, are interested in stores carrying a broader range of
products (Mintel, 2022). In an effort to increase their
attractiveness by offering a broader range of products, retailers

CHOICES
are fast expanding into new markets. Bottega Veneta Beauty
is the beginning of a journey that will have a positive effect on
the company's customer range, brand awareness, and
influence. Moreover, this new brand extension can increase
the brand's meaning, contribute to the development of brand
equity, and encourage more sales of products from the
company, especially among non-users of the parent brand
(Athanasopoulou et al., 2015 [2]). Through that the aim of the
strategic recommendation would be achieved.

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