Fashion marketing pt 2

Promotion

the publicization of a product, organization, or venture so as to increase sales or public awareness

Fashion shows

• an essential part of the fashion industry

• significant publicity for fashion designers; expensive to produce

• designers connect with bigger customers by live-streaming the show

• retailers can hold a special in-store fashion show or events to reward their loyal customers and social media followers

• major international fashion shows: twice a year (Fall/Winter season and Spring/Summer season) in NY, London, Paris, Milan, etc.

Source of magazine profits

selling page space to companies

Factors that affect advertising fees

fees vary by magazines’ subscription sales and retail sales

Premium page of magazine

the back cover

• AKA the fourth cover

• 50% chance to be placed visibly on a table, leading to better recall

Digital magazine

effective to place the ad at the top of the screen

• important to fit the screen on devices of different sizes

Objectives of celebrity endorsement advertising

• celebrity personality and images will be associated with the brand.

• it can reinforce and rebuild the brand’s image and positioning in the market place

• the right choice of celebrity is crucial

Davie-Brown Index (DBI)

helps the company assess the suitability of a celebrity as a brand ambassador

Criteria:

• Appeal, Notice: Celebrity's popularity and appeal within their field and the media

• Influence, Trust, Endorsement: How strong a celebrity as a spokesperson or an icon of the brand

• Trendsetting, Aspiration: How consumers aspire to have the style and lifestyle of the celebrity

• Awareness: Consumers’ awareness of the celebrity

Why is window display an effective promotion channel?

• provides fantastic canvas to promote your brand and products

• inspirational and eye-catching windows → attract customers to walk into the store and visit the website

• reinforces brand image and provides information about new arrivals, price and promotions (seasonal events)

Ex) Zara uses expansive windows and stylish displays to promote brand

Examples of outside media (advertising channel)

• billboards

• large-scale building wraps

• posters

• ads on the sides of buses or taxis

Online media

• raise consumer engagement via social media

• can go viral

• behaviorally targeted advertising

• pay-per-click on fashion blogs or Facebook pages

AIDA model

Aim of an advertising message:

• Awareness- content increases awareness of brands/brand images, their products and/or services

• Interest- the content interests consumers and followers

• Desire- the message increases a desire for the brand and its products

• Action- consumers take endorsement and take actions (signing up for email newsletter, having positive word-of-mouth, liking the product on social media, making purchases)

Limited editions

designers or retailers sell limited editions to enhance their prestige and

customer desire for the limited editions, and to increase sales

• provides exclusivity, scarcity, and urgency ,which can increase the value of the merchandise as well as consumers’ desire for the limited items

Designer and retail collaborations

collaborations between high-profile designers or celebrities and high-street retailers

Ex) H&M with Karl Lagerfeld, Adidas with Prada, Air Jordan with Dior

Benefits of designer and retail collabs

should be mutually beneficial; can serve as good business opportunities, share resources, and reduce risks

For designers: brand gets wider exposure and attracts a new audience due to affordable prices and thus it increases sales

For retailers:

• gains prestige and keeps the brand relevant

• collaboration increases choices

• attracts new fashion-conscious customers

Shouldn’t alienate existing customers (especially designers’ customers)

Difference between B2C and B2B sales promotion

B2C (business to consumer)- consumer sales promotion

• aimed at end-consumers

• limited editions

• high profile designer/celebrity and retail collaborations

B2B (business to business)- trade sales promotions

• aimed at retailers or wholesalers

• market centers

• trade shows

Sales promotion

purpose is to increase demand and sales of specific products and services

Ex) price reductions (sales), coupons, gift with purchase, prize draws, limited-editions and collaborations

B2B: Fashion market

locations where fashion brand companies promote and sell their merchandise to retailers

Market centers- cities that are headquarters of major fashion brand companies (NYC, LA, Paris, Tokyo, Milan)

Marts- buildings or groups of buildings in which sales representatives show their apparel, textiles, accessories, and home fashions lines to retail buyers

• temporary showrooms or booths

Locations of US market centers

• NYC

• LA

• Chicago

• Dallas

• Atlanta

What things are people willing to pay for?

• scarcity

• exclusivity

• social status

Luxury brand consumption

authentic pride leads to a desire for luxury brands due to the licensing effect, but hubristic pride is the outcome of those purchases

Licensing effect

occurs when people allow themselves to indulge and do something negative after doing something positive (and vice versa)

Conspicuous consumption in recessions

• Use the sales data of handbags of Louis Vuitton and Gucci from prior to Oct. 2008 (pre-recession) and 2009 (the midst of the recession)

• Display of brand logos or marks

• Those who still remain in the market during the recession favor the logo-laden products (due to high need for status and differentiation from the masses)

Subtle signals of inconspicuous consumption

There is an inverted U relationship between price and brand identification (visible and explicit logos and patterns)

Emanuel Ungaro

• French fashion designer, couturier

• Founded his own house in 1965

• Known for his feminine, romantic and classy style

• Former assistant to Cristobal Balenciaga

Ungaro’s bridge collection

Emanuel, a women’s bridge collection in 1991, the lowest-tier label

• top-selling French apparel brand in American department stores in the late 90s (but still most Americans did not know who the designer, behind the brand “Emanuel” was)

Ungaro’s first licensee

Ungaro signed with Gruppo GFT to make a boutique collection (women’s wear and men’s wear), which is called Parallèle in 1967

What are the Issues related to the partnership between Ungaro and the Ferragamo family?

Ferruccio Ferragamo (CEO) acted as if he knew more about high fashion than he did, conflicting with Carlo Valerio, the Ungaro’s managing director