4.6.1 New Products and Ranges Product innovation is a core component of Lovisa’s competitive advantage. Its customers expect a broad range of fashionable products that are in line with the latest global fashion trends. In order to meet this expectation, Lovisa employs a product team of more than 20 people who are responsible for Lovisa’s forward range planning, designs, product development, production, visual merchandising and merchandise planning, ensuring Lovisa is continually meeting market demand. While the product team is based in Melbourne, its team members travel the world to identify global trends. In addition, its product teams meet with suppliers in China, India, Thailand and other parts of Asia frequently. As Lovisa is frequently …show more content…
This typically involves securing leases in AA, A or B grade rating shopping centres and malls. Lovisa has refined its global store model based on what it understands to be the optimal store size, location and format. The combination of a 50 square metre floor space and a homogenised layout allows Lovisa to have strict criteria when identifying and securing potential store sites in new regions, facilitating the roll-out of stores quickly, at low cost. On average, it takes approximately 14 days to fit out a new Lovisa …show more content…
Lovisa has proven it is capable of successfully operating profitably in international territories, having established its initial portfolio of company owned stores in Australia, New Zealand, Singapore, Malaysia and South Africa and supporting franchised stores in Kuwait, the United Arab Emirates, and Saudi Arabia. Lovisa currently has a portfolio of 93 international stores (including 13 franchised stores). When ranked by store contribution, 11 of Lovisa’s top 20 stores during the year were located outside of Australia, with all of Lovisa’s international territories operating profitably. The Group plans to remain nimble and opportunistic in expanding and moving into new markets, such that if opportunities arise, the Group may accelerate its plans to enter a new market or continue to grow an existing market. Likewise it will defer its entry into a new market if it considers that appropriate opportunities aren’t presented at the relevant
The Italian Centre Shop shows many attributes as for how they are able to build on their strengths. This in the end helps a company to expand and grow further to improve their internal performance and as well by gaining more consumers (Kerin, et al., 2015). Firstly, the company’s main strength relies on the location of the different branches, being placed strategically so it is easier to bring in more consumers as well as being easily accessible for people around those areas. Two of the three locations in Edmonton are situated beside shopping centers, Southgate mall and West Edmonton mall, which in the West end is the most popular attraction of the city. The third branch is located in North Edmonton which is known for the heart of “Little Italy”(Spinelli, 2016). Secondly, the Italian Centre Shop sells a variety of merchandise and different cuisine from all around the world, the main place being Italy and others which include: Spain, Romania, Portugal, Ukraine and Poland (Spinelli, 2016). This helps to expand the company’s target market while still keeping
The Target Corporation prides itself on their department store roots with a constant obligation to great prices and stylish originality. The main focus of every Target store is the customer, whom the corporation refers to as a "guest", making them feel more personal. Each guest can expect to walk into a clean, organized, and easy to navigate store with "high quality, stylishly designed items plus all the essentials for his or her life".1 The company also has a significant focus on design. The company employs a "design for all" strategy that says great design is for everyone to enjoy, everyday. The product designers know how to create products you will "love to live with and low prices you can't live without".1 The commitment to design has become a key technique of attracting and keeping their shoppers coming back.
Bianchi, C. & Ostale, E. (2006). Lessons learned from unsuccessful internationalization attempts: Examples of multinational retailers in Chile. Retrieved January 11, 2011, from http://www.carlospitta.com/Courses/Gestion%20Financiera%20Internacional/Cases/Failed%20retail%20attempts%20in%20Chile.pdf
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
We will mainly focus our analysis on the market share, financial problem and brand strategy. Now we start our analysis to choose the right creative to solve dilemmas which Kyle Kirkland and Dana Messina are facing.
3.0 MARKETING/PROMOTIONAL PLAN OBJECTIVES 3.1 Increase Sales, Brand Awareness, and Brand Loyalty Alesia C. Studio must prioritize their objectives on increasing its sales, brand awareness, and brand loyalty. Furthermore, the company must seek to gain a greater dominance in the formalwear and silk accessories market by configuring a stronger market-penetration strategy. In order to increase more sales, Alesia C. Studio must drive out its competitors, dominate its growth markets, retain and increase its product, and increase its existing customer usage, Ms. Chaika’s regional marketing strategy may become more competitive across more geographic areas.
In addition, the company’s CEO, Charles Hughes, was in a dilemma choosing between maintaining previous marketing mix spending and possibly running a deficit, and reallocating funds and partially losing the company’s public impact. Meanwhile, another problem emerged as there was conflict between Hughes and retail partners on whether existing stores should be converted to free-standing centres. Although it seems that LRNA was confronted with various difficult situations, in this case, I will focus on the company’s main and most significant issue, which is determining whether to stick to the originally proposed dual positioning – a combination of “the definitive family” and “a logical evolution of the legendary Land Rover”, or to design a new positioning strategy according to competition and consumers’ needs. Additionally, I will discuss the strengths and weaknesses of the Centre stores
In the primary activities, several measures are taken to control cost and create value. LV reduces cost by learning modern manufacturing method from auto makers and other industries. Although the Louis Vuitton’s production is still a labor-intensive process, increasing efficiency and productivity were achieved by reaching perfect balance between machines and labors. To adding the value of products, LV pays much attention on the improvement of quality. Since “made in France” is a guarantee of high quality, Louis Vuitton never builds factories out of France or outsources the production to a location with cheap labors. Although the labor price in France is extraordinarily high, the benefits such as customer loyalty and commercial reputation obtained by the company obviously outweigh the pay. Apart from that, test laboratories are established for quality checking. In the laboratories, bags are lifted and dropped again and again and jewelries are shaken strongly to make sure every customer get merchandizes of high quality. Since quality is a significant factor to measure a product in Japan, these strict quality control process satisfies Japanese customers. Customer service is another important factor in primary activities. According to the LV regulations, once a product i...
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Miuccia Prada once said that “What you wear is how you present yourself to the world, especially today, when human contacts are so quick. Fashion is instant language”. Miuccia Prada and the Prada brand have grown from humble beginnings making quality leather goods to a public traded company with a current market capitalization of over $26 billion (USD) . With the development of Prada as one of the world’s premier luxury brands it provides an excellent case study to examine how strategy paved the way for the success of the Prada brand. First, an examination of Prada’s strategic positioning against luxury brand rivals Louis Vuitton Hennessey Moet (LVHM) and Kering (Gucci). The acquisition history of Prada will be reviewed, where some preliminary conclusions can be made about what has been contributing factors to both the successes and failures. Then finally, an evaluation of what the future holds for Prada and the sustainability of its competitive advantage.
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
The main objective of this report is to develop and provide a sales and marketing plan for which the company will help to generate more profit and acquire more customers to patronize the product. This report will cover the period of 2016 to 2017 which will serve as guidelines that needs to follow of the employees, managers and management team to reach the desired goals and target for the company.
By 2002, Moet Hennessy Louis Vuitton was the world’s largest luxury products company, enjoying annual sales of 12.2 billion euros. LVMH carries the most prestigious brand names in wine, champagne, fashion, jewelry, and perfume. Upon entrance of this luxury product industry, LVMH was aware that they produced products that nobody needed, but that were desired by millions across the world. This desire in some way fulfills a fantasy, making consumers feel as though they must buy it, or else they will not be in the moment, and thus will be left behind.
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...