ABOUT THE COMPANY:-

For the Brand Value Chain illustration, we have chosen "Valentino". Valentino is an Italian fashion house founded
in 1960 by Valentino Garavani and part of Valentino Fashion Group. Valentino's headquarter is in Milan whereas
the creative direction is in Rome,Italy .Mr. Valentino Clemente Ludovico Garavani was born on 11th May, 1932
and as a child he was interested in both fashion and Art.As Valentino has also special designed wedding dresses
for famous and popular people Elizabeth Talor , Anne Hathaway , Jennifer Lopez, Courteney Cox, Sophie hunter
and princess Madeleine of Sweden .
Through history and innovation, the Maison Valentino plays a significant role in the luxury segment, a crucial mix
for a creative enterprise that develops a feeling of beauty. Valentino's fashion is represented by the Haute Couture
and Prêt-à-Porter lines for ladies and men, as well as the Valentino Garavani accessory lines, which comprise
shoes, purses, small leather items, eyeglasses, scarves, ties, and perfumes. A visual realm that can be found in over
100 countries via 175 Valentino directly managed stores and over 1500 places of sale. Valentino appointed
Pierpaolo Piccioli as the Maison's sole Creative Director on July 7, 2016.
Valentino is one of the worlds most successful and fastest-growing fashion brands. Between 2013 and 2019, this
fashion firm raised revenues by more than $1 billion, a 134 % rise on a reported basis. Valentino, the Italian
fashion business, is now owned by the Qatari royal family, who paid an astonishing 700 million euros for it. This
fashion label is one of the most well-known and renowned not only in Italy, but also across the world.

BRAND VALUE CHAIN

The brand value chain is a systematic way to evaluate the origins and results of brand equity, as well as the manner
in which marketing activities generate brand value. It gives information to assist the various decision makers in the
firm and emphasizes that every employee contributes to the branding endeavour. It thinks that the value of the
brand is ultimately determined by customers. Keller and Lehmann developed the Brand Value Chain concept in
2003. The Brand Value Chain assists marketers in tracking brand value from the beginning of a marketing
investment to the end of shareholder value.

STAGES:
1. Marketing Program Investment
Valentino, a premium luxury corporation, is an aspirational brand that offers apparel, cosmetics, and other
products. Valentino has a diverse product offering over a variety of product lines, primarily for women,
but has recently begun to provide new goods for men as well. Valentino's marketing mix includes a wide
range of items in the categories of apparel, luggage, shoes, accessories, and perfumes. Small leather
products, jewellery, straps and charms, and other soft accessories such as scarves and shawls are among
 the accessories. It has introduced product lines such as Haute Couture, which offers a variety of
collections of uniquely and individually handcrafted luxury products, Pret a Porter, which are
sophisticated and exclusive lines for men and women, Valentino Garavani, which are Valentino
accessories label offerings, and RED Valentino, which is more contemporary and modern.
Valentino is a high-end brand that caters to the high class people. Haute couture is a premium product line
supplied at prices equivalent to competitors such as like luxury fashion brands Dior, Prada, and Chanel for
clients who are not price concerned but they desire a brand that is very exclusive to society's elites. The
Pret a Porter product line, on the other hand, ranges in price from 315 euros to 5205 euros. The Valentino
Garavani product line is priced between 115 and 2555 euros, with the most economical product line, RED
Valentino, priced between 30 and 1465 euros for clients who are business professionals and emerging
elites in society.
The Valentino brand has a wide reach thanks to exclusive boutiques and ecommerce channels. Haute
couture items give exclusivity to its top clientele and are available through the company's boutiques,
which offer customized depending on their stylistic demands. It has many retail outlets in various nations
across the world and typically sells through direct marketing. The firm has also built a website through
which it offers many product lines and allows Valentino to collect information about the clients'
purchasing patterns.So, this differentiation is done to keep the customer segment separate as well and also
to maintain its exclusivity.
The Valentino brand engages in several forms of marketing communication for its various product lines.
Catwalks in fashion shows, promotional films, public relations, and social media are the primary means of
communication for Haute Couture. To promote its product lines to a larger market, the Valentino brand
communicates through catwalks, print advertising, promotional videos, concept videos, internet sites, and
social media. It also distributed advertisements through certain outlets, such as Vogue magazine, which
has the largest fashion show in Paris, that appeal to its target demographic. It takes customer relationship
management extremely seriously and offers customers the most recent information about new items via
email and postal mail. In order to acquire attention, it also supports numerous charitable activities,
fundraising funds, and musical events. Furthermore, it concentrates on celebrity endorsements.
2. Customer Mind-set
The second stage is customer mind-set, where in this we will study how a mind-set of customer works in
relation with the brands like feelings, its experience, beliefs, and attitudes as well . So the customer mind-
sets refer to thoughts about the product, feeling of the product, the perception and the belief of the product
and the major thing, the satisfactory part about that product.
So as we know that now youth are towards living a high standard life in personal as well as in professional
life as well. As the customer targeted by the valentino are 25-45 years old where the both female and male
wants to purchase the product for pleasure and happiness that they will feel when they are using the
product of VALENTINO as it gives the feeling of luxurious life and also a better representation on the
professionalism as well .And as each product if valentino has uniqueness in their mind-set which is liked
by their customer and along with that it gives its customer a high -street with lower market fashion which
means that in its competitors like Dior ,channel , Prada are giving the high rate of fashion and as same
fashion is provided by valentino with same luxurious but in the price lesser than its competitors. Which is
attracting more customers towards Valentino products. So all these values of the customer mind-set is
where valentino stood up and had been growing rapidly in the business of fashion.
3. Brand Performance
Today, brand impression is quickly becoming one of the most important (if not the most important) purchasing
motivators for customers. With Covid constantly putting firms in fashion, luxury, and beauty to the test,
continuous global political challenges, and the rising share of wallet of younger customers, people are hyper-
aware of what brands genuinely value and how they convey this. In reality, a company's brand may account
for over half of its total worth - for example, $1.4 billion of Kate Spade's purchase cost to Tapestry was
attributable to 'brand value' (representing around 50 percent of the total sale). So Brand performance of the
brand can be measured and can be examine using coss -voice approach, where ou ar required to consider each
and every marketing initiative our brand runs inorder to see what is working and this cross-voice approach
takes 5 key voice into consideration of influencing customer buying -decisions:-
 Influencer
  Celebrities
 Media
 Owned Media
 Partners
Valentino is well-known for their dress creations and has been for over 40 years. They are both romantic and
flawlessly crafted. Valentino, on the other hand, does not simply manufacture dresses; he has expanded into all
types of clothes, including womenswear and menswear, as well as accessories. The company is recognised for
their usage of the colour ‘Valentino Red', which is always utilized inside one show-stopping garment in each
collection and runway, giving them a distinct identity in their use of coloured fabrics.
As in 2010 Valentino launched an iconic product that is Rockstud heels which have become symbolic to the brand
simply ‘Just know’. And this brand prestige image of luxury fashion makes people want to own Valentino
products to be a part of the designer fashion. Not only this, Valentino has also placed its brand in the category of
luxury fashion market and where its customers this company is targeting are higher class, Rich and elite and along
with that man and women who are willing to spend their money on designer items and as well as celebrities which
are using it. They use Internet pop ups on places like social media to communicate Valentino as a brand. For
example, if someone was visiting the Valentino website, an identification of them looking into particular things
would appear on their devices as an ad when going through sites like Instagram. This conveys to the buyer in a
subtle way that they should buy that product. Short videos were created to promote their efforts. Social media
presence, such as Instagram and Twitter. A celebrity's recommendation. Perfume samples are available in-store
and at department shops.
Valentino consumers include celebrities such as Lake Bell, Olivia Palermo, and Kate Hudson. Valentino created
Mrs. Kennedy's complete wardrobe for at least two years. She ordered six of his haute couture gowns, all in black
and white, and wore them during her year of grief following President John F. Kennedy's killing. She was
Valentino's faithful client from then on. Not only this valentino products are now used in India as well where
recently in the marriage of Ambani daughter wore valentino’s gown .So as of now valentino is also coming and
approaching to India as its demand in India has increased in the high standard people and some Indian celebrities
like Punjabi singer Diljit Dosanjh and Badshah also are customer of Valentino. So through this we could
understand that the brand is increasing in growth and soon outlets of Valentino could be found in India as well
along with that recently Valentino has invested in 9 boutiques in London England.

4. Shareholders Value
The stock price and dividends handed out by a company reflect the value it creates for its owners. The
fundamental principle of shareholder value is that future cash flows are discounted by the cost of capital to
calculate a company's intrinsic worth. A company that fails to deliver value to its consumers is working
against the long-term interests of its shareholders. Three key indications are stock prices, price/earnings
ratio, and market capitalization. Brand value is boosted by high and stable stock prices, a high
price/earnings ratio, and a large market capitalization.
The most common multiple used in the valuation of stocks is the N/A multiple (Price to Earnings). P/E
relates the current share price with the market expectations in terms of Earnings Per Share. This multiple
is used to compare a company's market value with its earnings. A company with a high N/A is considered
to be overvalued; a company with a low N/A is considered to be undervalued.

The N/A ratio of Valentino Fashion Group SpA is significantly lower than the average of its sector
(Clothing & Accessories): 12.12. The company valuation of Valentino Fashion Group SpA according to
these metrics is way below the market valuation of its sector.
The N/A ratio of Valentino Fashion Group SpA is significantly lower than its historical 5-year average:
N/A. The (current) company valuation of Valentino Fashion Group SpA is therefore way below its
valuation average over the last five years.
 Permira is to buy a 29.6% stake in Valentino, one of the world’s top fashion houses, for 782.6 million
euros ($1.06 billion), joining a small number of private equity firms in the luxury brand business.

Permira, which beat U.S. rival Carlyle to claim the stake, said on Wednesday it would become the single
biggest shareholder Valentino.

“We are interested in increasing the stake, also through a public tender offer,” it said in a statement.

But Carlyle appeared ready for a fight, with one source close to the situation telling Reuters that the “game
is not over” yet.

Best known for the floor-sweeping gowns designed for Hollywood stars, Italy’s Valentino Fashion Group
has a wardrobe of brands including Hugo Boss and Marlboro Classics.

Valentino was founded in 1962 by Valentino Garavani and he is still creative director. The celebrities he
dressed for Wednesday’s opening of the Cannes Film Festival include Chinese actress Gong Li.

Private equity firms are relatively new players in the fashion and luxury goods business, attracted by the
strong demand for bags, clothes and other products from a growing number of affluent consumers across
Asia.

MULTIPLIERS
1. Program Quality
The first multiplier in the Brand Value Chain is Program Quality. The potential of a marketing program's
investment to transfer or multiply farther down the chain is determined by the marketing program's
qualitative elements as measured by the program quality multiplier. A marketing program's quality is
defined by four characteristics i.e., clarity, relevance, uniqueness, and consistency.We can observe all of
these characteristics in the marketing program of Valintino.
Valentino is well-known for a variety of things today. From the V logo trademark to the brand's signature
red colour. Also, the country's numerous products and fashion lines. However, in today's fashion world,
there are a few aspects that act as a brand's identity. Time is an important consideration. The Valentino
brand has been known for a variety of things over the years.
Valentino has maintained tradition while still embracing innovation, particularly after 2008. This allows
them to keep the Valentino touch in their items while also incorporating new fashion trends. The
Valentino branch has become more appealing to the younger generation as a result of these ideals.
Valentino has only recently begun to pay greater attention to the younger generation in their 61-year
 history. Efforts are being made to create exquisite luxury everyday wear by combining classic touches
with new fashion advancements. The Valentino brand also has a culture of excellence, as evidenced by
their statement in 2020 that they will no longer utilise alpaca wool in their products, following revelations
of animal abuse in the alpaca business.

2. Marketplace Conditions
The model's second multiplier, Marketplace Conditions, influences the impact of the second stage
(customer attitude) on the third stage (brand performance). In the third stage, the consumer mind-set’s
potential to produce value is determined by a range of market variables beyond the customer's control.
Three main considerations are competitive supremacy, channel support, and client size and profile.
Because it is vital to compare a company's marketing spend in terms of quality and quantity to that of its
competitors, superiority is distinguished. When a marketing spend has a substantial competitive
advantage, the impact of customer attitude on brand success is increased. When the channel provides
strong support and a big number of consumers are lured to the brand, the brand value established in the
minds of customers is followed by great brand performance.
Valentino made its debut with Reliance Industries limited in Mumbai.It has partnered with other luxury
and non-luxury international brands such as Marks and Spencer, Diesel, Thomas Pink, and Steve Madden.
The past year has seen a rapid influx of international brands, both luxury and bridge to luxury, into India
and this has been attributed to the growth of the high end Indian fashion market. Sheetal Mafatlal,
president of Mafatlal Luxury who had previously been in talks with Valentino herself commented that
there is a newly developing group of 25 to 40 year olds in India who have the disposable income and
interest to keep up with international fashion here.
3. Investor Sentiment
The amount of value transferred from stage three, brand success, to stage four, shareholder value, is
determined by investor sentiment. When it comes to assessing brands and making investment decisions,
financial analysts and investors rely heavily on external elements. The general characteristics,
development potential, risk profile, and brand contribution of the financial market are all underlined.
Financial market dynamics include interest rates and investor sentiment. The third factor, risk profile,
refers to the level of risk that a brand confronts under various circumstances. What is the brand's social
and economic vulnerability? Fourth, how important is the brand's influence on the company's portfolio?
When a company operates in a healthy and growing market with no significant environmental barriers,
when the brand contributes a significant portion of the company's sales, and when the brand appears to
have a bright future, the value created in previous stages of the Brand Value Chain is most likely to be
transformed into shareholder value.

RECOMMENDATIONS:
1. Valentino can update its website and app with the option of using them in several languages, allowing
customers to use the website and app with ease. Customers can also reach you and acquire the information
they need when it is most convenient for them, even if it is outside of your typical business hours, due to a
superb website and user-friendly apps. A user-friendly website and app will help your business succeed by
attracting new clients.
2. Valentino can also start writing blogs on a regular basis to recommend their customers regarding the
accessories to wear and carry with their outfits.

NAME AND DETAILS OF EXECUTIVE OF VALENTINO:-

Name:- Balvinder Singh

Contact Number - +393884445716
Email Id- bilu.balvinder@valentino.com