Mango Supply Chain
Marcel Planellas, secretary general of the Esade business school, describes the Mango fashion retail chain, as “gazelle-like,” because it has grown so quickly. The fashion retail chain opened its doors in 1984 when two brothers, Isaac and Nahman Andic launched the first Mango store in Barcelona. Less than 25 years later, there are 1,114 Mango stores on the leading shopping streets of big cities in more than 90 countries. It is now, according to Planellas, “one of the most valuable retail brands in the world.” Interbrand, the international consulting firm. Says that Mango’s revenues amount to about 700 million euros. Esade has developed a case study of Mango, recently published in Expomanagement, the largest managerial forum of Spain’s HSM management training firm.
In an interview with Universia-Knowledge@Wharton, Planellas notes that when he asks students to explain Mango’s strategy, their first answer often focuses on the positioning of its shops in locations frequented by a specific market segment – young women who like fashion. Beyond that, “some students go further, focusing on what goes on in the [company’s] warehouses and how the company has structured its logistics chain, and the technology that it uses [for logistics]. But very few pay attention to its corporate culture and practically no one has an overall global view [of Mango].” Planellas believes there is something contradictory about Mango. “The chain is very well known at a popular level throughout the world but it is almost unknown from a managerial point of view.” He poses this question: “How many people know that Mango manufactures none of the garments that it sells?”
“We have a very focused strategy,” notes Enric Casi, Mango’s chief executive. “We target women who want the latest in fashion trends. If we were aiming at the entire public, we would not be loyal to our true customers.” Casi asserts that his target is “30% of the people who pass by our shops; we could not try to attract all 100% because we would lose our identity.” Casi adds, “Our women don’t go shopping; they go to Mango." In addition to various promotional campaigns, the values of the brand are strengthened “by stylishness and design because we bring out four collections each year thanks to the teamwork of our more than 900 designers.” He adds, “The shops aren’t only for selling [garments] but also for getting information [about them].” According to Casi, when a customer chooses a garment to try on, it is because she likes the design, the material, and the colors.
For example, lifestyle is one the major psychological factors that pushes the organization’s strategy. Lululemon wanted to create a “community hub where people could learn and discuss the physical aspects of healthy living, mindfulness and living a life of possibility”. Customers buy high end ‘lulu’ leggings to be part of the self-transformation movement lifestyle. The clienteles who purchase Lululemon’s leggings also perceive them to be of higher quality, thus don’t mind spending more if they receive better quality in return. Overall these psychological factors make Lululemon a popular exclusive brand that promotes the idea of a better lifestyle, this consumer behavior has helped Lululemon become more known with many sociocultural influences. With the increase of yoga and social media throughout the years, Lululemon is presented as a staple for yogi’s and athletes online and in person. Yoga instructors teach classes, pose in Instagram photos, and participate in self-exploration experiences all while wearing Lululemon leggings. This sparks the interest of consumers new to the lifestyle who view this as an influence to buy a pair. Lululemon also have a loyal clientele base that rave about the quality and comfort that come with buying a pair of Lululemon leggings. With the popularity, and the higher cost, many see buying a pair of leggings as
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.
They effectively advertise their brand, quality, style and elite products, creating a useful image of confidence, sexiness and desire to its consumers, enticing both the female and male market segment. Knowing the exact approach it needs for the purpose of increasing sales and dominating its market. Victoria’s Secret is cleverly using its marketing tactics to keep its consumers engaged with the company and its products. Not all of the same products are offered in each outlet which will require its consumers to visit the store, review the catalog, interact on its social media and visit its website to stay on top of sales and
The superiority of craftsmanship and skill helps enhance the creativity of being the world’s leading avant-garde fashion icons. Louis Vuitton also takes satisfaction in providing the best quality by producing the most exquisite materials, being detail-oriented, having a disposal of defective goods, good promotional strategies and a strong brand reputation and image. The brand itself is one of the largest, elite brands globally (Louis Vuitton-History, 2015).
The principles of marketing (The Times 100, n.d) are a range of processes concerned with finding out what consumers want, and providing it for them. This involves the ‘4ps’ of marketing; price, place, product and promotion. The product decision in any company involves dealing with goods that should be offered to a group of customers (Jobber & Ellis-Chadwick, 2012). Burberry maintains a product line with great width and scope in which their products fall into two main categories; fashion or continuity. Their fashion products are designed to be responsive to fashion trends and are introduced on a collection to collection basis (Burberry, n.d). Continuity products however have life cycles that are expected to last for a certain time period. Burberry also has 3 primary collections; womenswear, menswear and accessories, with the variety of products they can utilize their product mix greatly. Burberry also has...
Polo Ralph Lauren’s key success factors derive from the company’s powerful identity. It is notorious for it preppy American style in the designer world, but it is also luxurious, elegant and thrives to always be a classic. It appeals to a wide range of consumers, even if a person doesn’t wear Polo they are at least familiar with what it is. The way the company markets itself is also a big part of its success. For a company that started out less than 50 years a...
Polo Ralph Lauren not only owned retail stores, but also under other retailers such as Nordstrom, Macy’s, Dillard’s, Belk, Saks Fifth Avenue, and various other retailers. The unique selling proposition of Ralph Lauren brands go about defining themselves as not like the others, is to develop a positioning that’s intended for a narrower target to make them unique. Most luxury brands fall into this fashion unique style categories. Ralph Lauren Company wants potential customers to know all the ways that they are better than others, and as a result their advertising focuses on product benefits. The result is to grab the attention of their customers. The emotional appeal of this brand is to increase your self esteem and leaves you feeling high class and
Hennes & Mauritz (H&M) is a Swedish clothing retail company. The company was founded by Erling Pesson in 1947. The first H&M store was opened in Vaesteras, Sweden in 1947. The mission of H&M is to offer fashion and quality at the best price where “quality includes ensuring that products are manufactured in a way that is environmentally and socially sustainable” (H&M, vision & policy, n.d., para. 1). This essay is to highlight the current market analysis, pricing strategy, retail strategy, and competitive advantage analysis of the company.
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.
Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zara’s current business model.
Nokia, the leader of mobile phone manufacturers, has a successful strategy in the emerging markets. According to the case study, Nokia has been extremely successful in the past 15 years. They had the longest and the most complex supply chain, held almost 40 percent
The Apparel or clothing industry is a very dynamic market where changes occur in a daily basis. So, rivals within this industry assist to an extreme competition. To make sure that, they stay relevant in the market scene, businesses have to develop creative, innovative and sustainable marketing strategies to attract more customers and increase their brands awareness. Because, this industry has many players, we have chosen one well known company to make our research more specific and well centered. Hennes and Mauritz AB commonly known as H&M is our best choice because, this
Fashion takes on many different facets and concerns many subsets— a model sashaying down the runway in a gown encrusted in real gems, Lady Gaga’s infamous dress made of cuts of raw beef, a teenage girl obsessing over the season’s latest styles— it is all an expression of our minds and who we are or want to be, made tangible. It is a medium just like any other, for while artists wield brushes and paints, designers use thread and cloth to illustrate their vision. The artistry is none more so apparent than in the exclusive world of haute couture, a world of extravagance that caters to aesthetics, producing one-of-a-kind wearable masterpieces that are made to be admired rather than worn. It is without doubt, high fashion and its design is an art.
The following has been discussed in the document proceeded in order to fully understand Mr Price Group Ltd. Focusing on Mr Price clothing. There is a brief history of the company and the struggle it in counted before become a successful franchise. The successful business is then further analysed using a variety of tools such as SWOT, Porter’s Five Force Model and PESTLE. Once all issues relating to the business are mentioned, strategies are recommended in order for the business to reach full potential. This is all found using primary and secondary resources.