Professional Documents
Culture Documents
ANALYSIS REPORT
1
LIST OF FIGURES
2
EXECUTIVE SUMMARY
(theimperession, 2021)
BOTTEGA VENETA
3
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.
4
(Williams & O'Connor, 2022) (Disko ) (Matthieu Blazy 2022)
“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
5
1.3 Aim & Objectives, Limitations &
Sources
Figure 1:
6
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
7
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).
8
(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).
9
(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
10
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)
11
2.2 Kapferer Prism
Figure 3:
-aristocracy -confident
-signature leather weaving -wealthy
- wise -elegant
-classic -intrested in arts
-unique -looking for privacy and comfort
12
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).
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
13
2.3.2 CBBE MODEL
Figure 5:
14
2.4 Diagnosis
(ALL Bottega Veneta)
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).
15
(Street Style Bottega Veneta 2020) (Street Style Bottega Veneta 2020)
2.4.1 Consumer Profile
16
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.
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.
18
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.
19
3.4.1 Positioning & Timeline
Figure 11:
3.4.1.1 Positioning Map
20
3.4.1.2 Strategic Timeline
Figure 12:
01 02 03
04 05 06
21
(Portraits Bottega Veneta 2019)
22
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.
23
REFERENCE LIST
Albrecht, C.-M. et al. (2013) “Drivers of Brand Extension Success: What really matters
for luxury brands,” Psychology & Marketing, 30(8), pp. 647–659. Available at:
https://doi.org/10.1002/mar.20635.
AlexEnglish and Italist (2022) Why is Bottega Veneta so expensive + how to pronounce
Bottega Veneta, Italist Magazine. Italist. Available at:
https://www.italist.com/magazine/why-is-bottega-veneta-so-expensive/ (Accessed:
January 11, 2023).
Athanasopoulou, P., Giovanis, A.N. and Avlonitis, G.J. (2015) “Marketing strategy
decisions for brand extension success,” Journal of Brand Management, 22(6), pp. 487–
514. Available at: https://doi.org/10.1057/bm.2015.27.
Bain, M. (2022) How Bottega Veneta uses technology in service of craft, The Business of
Fashion. The Business of Fashion. Available at:
https://www.businessoffashion.com/articles/technology/how-brands-are-using-
technology-in-service-of-craft/ (Accessed: January 15, 2023).
Behrmann, A. (2021) Bottega Veneta appoints new creative director, Drapers. Drapers.
Available at: https://www.drapersonline.com/news/bottega-veneta-appoints-matthieu-
blazy-as-creative-director (Accessed: January 11, 2023).
Berisha, T. (2019) How can high-end makeup brands suit the generation Z' sense of
beauty?, How can high-end makeup brands suit the Generation Z' sense of beauty? |
Swiss Open Access Repository. Available at: https://sonar.ch/hesso/documents/314966
(Accessed: January 16, 2023).
Bottega Veneta : Behind the iconic Brand's revival (2021) Lectra. Available at:
https://www.lectra.com/en/library/bottega-veneta-behind-the-iconic-brands-revival
(Accessed: January 11, 2023).
24
Brun, A. and Castelli, C. (2013) “The nature of luxury: A consumer perspective,”
International Journal of Retail & Distribution Management, 41(11/12). Available at:
https://doi.org/10.1108/ijrdm-01-2013-0006.
Disko (2022) Raw Materials and sustainable sourcing, Kering. Kering. Available at:
https://www.kering.com/en/sustainability/innovating-for-tomorrow/raw-materials/
(Accessed: January 12, 2023).
FashionNews, R.J.I. (2020) Bottega Veneta introduces collection using sustainable cork
material, GLASS HK. Available at:
https://www.theglassmagazine.hk/index.php/2020/03/10/bottega-veneta-introduces-
sustainable-cork-material/ (Accessed: January 17, 2023).
Fernandez, C. (2021) As Tomas Maier departs, what's next for Bottega Veneta, The
Business of Fashion. The Business of Fashion. Available at:
https://www.businessoffashion.com/articles/news-analysis/breaking-tomas-maier-
exits-bottega-veneta/ (Accessed: January 12, 2023).
Gorp, T.V., Hoffmann, J. and Coste-Manière, I. (2012) “Brand building: Luxury leather
goods brands anatomized,” Journal of Global Fashion Marketing, 3(3), pp. 127–134.
Available at: https://doi.org/10.1080/20932685.2012.10593115.
Guiltinan, J.P. (1999) “Launch strategy, launch tactics, and demand outcomes,” Journal
of Product Innovation Management, 16(6), pp. 509–529. Available at:
https://doi.org/10.1111/1540-5885.1660027.
Kapferer, J.-N. (2014) “The future of luxury: Challenges and opportunities,” Journal of
Brand Management, 21(9), pp. 716–726. Available at: https://doi.org/10.1057/bm.2014.32.
Kapferer, J.-N. and Bastien, V. (2017) “The specificity of luxury management: Turning
Marketing Upside Down,” Advances in Luxury Brand Management, pp. 65–84. Available
at: https://doi.org/10.1007/978-3-319-51127-6_5.
Keller, K.L. (2001) ‘Building Customer-Based Brand Equity. (cover story)’, Marketing
Management, 10(2), pp. 14–19. Available at: https://search-ebscohost-
com.arts.idm.oclc.org/login.aspx?direct=true&db=bth&AN=4966486&site=ehost-
live&scope=site (Accessed: 12 January 2023).
Keller, K.L.L. (2001) Building Customer-Based Brand Equity: A Blueprint for Creating
Strong
Kering (2018) Kering announces new developments in its digital strategy, Kering.
Kering. Available at: https://www.kering.com/en/news/announces-new-
developments-in-its-digital-strategy (Accessed: January 13, 2023).
26
Mondalek, A. (2021) Should fashion break up with Big Tech?, The Business of
Fashion. The Business of Fashion. Available
at:https://www.businessoffashion.com/articles/marketing-pr/should-fashion-
break-up-with-big-tech/ (Accessed: January 15, 2023).
Namida, M. (2022) Bottega Veneta Ramadan 2022 collection Photo , Savoir Flair.
Savoir Flair. Available at: https://www.savoirflair.com/fashion/593918/bottega-
veneta-ramadan-shoot.
Ozuem, W. and Azemi, Y. (2018) Digital Marketing Strategies for fashion and Luxury
Brands. Hershey: Information Science Reference.
Reddy, M. et al. (2009) “How far can luxury brands travel? avoiding the pitfalls of
Luxury Brand Extension,” Business Horizons, 52(2), pp. 187–197. Available at:
https://doi.org/10.1016/j.bushor.2008.11.001.
Salamone, L. (2022) Bottega Veneta and the reinvention of Brand Apps, nss
magazine. nss magazine. Available at:
https://www.nssmag.com/en/fashion/29055/bottega-veneta-app (Accessed: January
15, 2023).
28
Klein, J.F. et al. (2016) “Linking pop-up brand stores to brand experience and word of
mouth: The case of luxury retail,” Journal of Business Research, 69(12), pp. 5761–5767.
Available at: https://doi.org/10.1016/j.jbusres.2016.04.172.
Laura Bonnet, translated by J.A. (2015) Bottega Veneta opens homeware store in Milan,
Vogue France. Vogue France. Available at: https://www.vogue.fr/fashion/fashion-
news/diaporama/bottega-veneta-home-opens-new-store-in-milan/19679 (Accessed:
January 12, 2023).
Lee, H., Rothenberg, L. and Xu, Y. (2020) “Young luxury fashion consumers'
preferences in multi-channel environment,” International Journal of Retail &
Distribution Management, 48(3), pp. 244–261. Available at:
https://doi.org/10.1108/ijrdm-11-2018-0253.
Mintel (2022) Future Interests When Shopping for Luxury Goods, Mintel. Mintel.
Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1159707/?
fromSearch=%3Ffreetext%3DAlmost%2520a%2520third%2520%252832%2525%2529%2520
of%2520US%2520%2520luxury%2520consumers%2520%26resultPosition%3D1 (Accessed:
January 18, 2023). 27
Shirley, K. (2022) Bottega Veneta now offers a lifetime warranty for its handbags, Forbes.
Forbes Magazine. Available at:
https://www.forbes.com/sites/kristenshirley/2022/10/29/bottega-veneta-now-offers-a-
lifetime-warranty-for-its-handbags/ (Accessed: January 11, 2023).
Sims, D. (2014) Bottega Veneta Fall/Winter 2014 Campaign, gentlemans diary. gentlemans
diary. Available at: http://www.gentlemansdiary.com/the-blog/2014/8/22/bottega-
veneta-fallwinter-2014-campaign.
Siyao, L. (2021) “Analysis of luxury brand and Consumer Psychology,” Proceedings of the
2021 International Conference on Enterprise Management and Economic Development
(ICEMED 2021) [Preprint]. Available at: https://doi.org/10.2991/aebmr.k.210601.008.
Statista (2022) Most recognized luxury brands worldwide in 2022, as an index score,
Statista. Tugba Sabanoglu. Available at: https://www-statista-
com.arts.idm.oclc.org/statistics/1323202/most-recognized-luxury-brands/ (Accessed:
January 13, 2023).
Statista (2023) Brand value of Bottega Veneta from October 1, 2018 to January 1, 2022,
Statista. Statista Research Department. Available at: https://www-statista-
com.arts.idm.oclc.org/statistics/979676/brand-value-of-bottega-veneta/ (Accessed:
January 11, 2023).
Team, B.F. (2021) Kering and Bottega Veneta join Bof Careers, The Business of Fashion.
The Business of Fashion. Available at:
https://www.businessoffashion.com/articles/news-analysis/kering-and-bottega-
veneta-join-bof-careers/ (Accessed: January 9, 2023).
Testa, M. et al. (2017) “Long-term sustainability from the perspective of cullet recycling
in the container glass industry: Evidence from Italy,” Sustainability, 9(10), p. 1752.
Available at: https://doi.org/10.3390/su9101752.
29
Williams, R. (2021) Bottega Veneta launches online magazine, The Business of Fashion.
The Business of Fashion. Available at:
https://www.businessoffashion.com/news/marketing-pr/bottega-veneta-launches-
online-magazine/ (Accessed: January 15, 2023).
Williams, R. (2022) Who is Matthieu Blazy, Bottega Veneta's new creative director?, The
Business of Fashion. The Business of Fashion. Available at:
https://www.businessoffashion.com/articles/luxury/kering-names-matthieu-blazy-as-
bottega-venetas-new-creative-director/ (Accessed: January 9, 2023).
Williams, R. and O'Connor, T. (2022) Why Burberry changed designers, The Business of
Fashion. The Business of Fashion. Available at:
https://www.businessoffashion.com/articles/luxury/burberry-names-daniel-lee-chief-
creative-officer/ (Accessed: January 17, 2023).
Yan, H. & Qu, X. (2014), "Research on the Marketing Strategy of Luxury Goods",
Contemporary Logistics, , no. 15, pp. 42-46. ALL Bottega Veneta (no date). Available at:
https://images.squarespace-cdn.com/content/v1/55f45174e4b0fb5d95b07f39/1583761028987-
6GATL79IGXYKC73N9ZTY/Jamie+Hawkesworth+Daniel+Lee+British+Vogue+Oct+2019+%
286%29.jpg.
30