VALENTINO NUDE Brand extension strategy ANASTASIA VINCENT GABRIELLE CORON HSIN-NI TSAI JULIA WILCZ
Valentino "Nude"
Contents
1. Introduction to the Global Projet
03
2. Valentino's Brand Story
04
3. Main findings
06
4. Problem & Objectives
09
5. Brand Extension
10
Brief Concept Brand Positioning Product Inspiration Pricing Strategy Place Packaging & Communication
6. Evaluation
21
7. Conclusion
22
Valentino "Nude"
Luxury Marketing
Chapter 1
Introduction to the Global Projet
In the recent year, Valentino, ever brand is faced with a fierce competition within the luxury world because of the rise of large fashion group. Valentino, this 55 year-old luxury house, in contrast, having the growth of sales 25% from 2012. From accessories to couture, Valentino is in demand. Also, according to the founder, the young customers, also considered as Millenials might be the new future. As the brand has adopted diversification over the years, we've figured out a potential product category, which may lead this brand towards another level of success.Â
Valentino "Nude"
Luxury Marketing
Chapter 2
Valentino Brand Story The brand was created in 1960 by Valentino Garavani and Giancarlo Giammetti. They combine tradition and innovation with Haute Couture et Prêt-à-Porter for women and men. Valentino Garavani started his career as an apprentice for local designers in France. Training at the Ecole des BeauxArts in Paris, he worked for Guy Laroche before opening his own fashion house on Via Condotti in Rome. He quickly became known for his haute couture, glamorous dresses and catching the women from all over the world - like Jackie Kennedy. Valentino even started off designing wedding dresses for women like Elizabeth Taylor and Anne Hathaway. Now, Maison Valentino is one of the major actor of international fashion with a high added value. Valentino is located in 100 countries across the world with 175 stores and 1 500 point of sales. Valentino includes the following brands: Valentino, Valentino Garavani (which declined its offer in shoes, handbag, leather goods, glasses, scarf, ties and fragrance), Valentino Roma e R.E.D. Valentino. It operates in the upper end of the fashion and luxury market, offering exclusive products in the couture, ready-to-wear, designer, diffusion and bridge segments.
Stefano Sassi is the Chief Executive Officer of Valentino S.p.A since 2006 with a new strategic vision. He designated in 2008 Maria Grazia Chiuru and Pierpaolo Piccioli artistic directors. It’s in 2015, at the end of the year that Valentino win higher than the USD billion of turnover. Maison Valentino target the patricians, they don’t a huge logo on their product but they are rather discreet. Patricians are wealthy, they pay a luxury product for inconspicuous consumption, juste for enjoy themselves.
Valentino "Nude"
Luxury Marketing
Chapter 2
Valentino Brand Story Precisely, Valentino’s collection is declined in 4 collections : Haute couture, Prêt-à-Porter, Valentino Garavani and Others.
Haute Couture: All collection is Hand-crafted. Team is composed about 60 designers in “ Les Ateliers de Palazzo Mignanelly, Rome”.
Prêt-à-Porter: Declined for women and men, they transpose Haute Couture ideas to Prêt-à-Porter. Each collection reveal beauty and delicacy.
Valentino Garavani: Collection of accesories for women and men in harmony woth others Valentino’s collections. This is Haute Couture caracteristics and “savoir-faire” of Prêt-à-Porter.
Others: Others accesories come complet the range. Glasses, fragrance… Few years ago, Valentino opened a new Flagship store, Via Montenapoleone in Milan. This concept store associate new with ancient, that created an atmosphere remind customers about italians Pelazzo. A special atmosphere is created with different colors, lighting and materials. This new store recount values and iconography of the brand. This remind Valentino’s cores and codes, its DNA, the “savoir-faire” and craftsmanship.
Valentino "Nude"
Luxury Marketing
Chapter 3
Main Findings 1. Brand keeps up with the changeable and highly competitive luxury world. Even before the retirement of founder Valentino Garavani, the brand never stop being modernized for over past 10 years. The launch of RED aims to target younger customer, as well as diluting importance of the role “Valentino” but welcome branding new collaboration with Maria Grazia Chiuri and Pierpaolo Piccioli. Also, several artiste collaborations continue to explore another horizon of a classic luxury brand. According to the article published on the Frontify, “with $200 billion in annual spending power, and representing nearly a quarter of the American population, Millennials are fast-becoming the most powerful and influential consumer sector.”
Also, according to an article written by Nigel Wilson, a managing director of Hitwise, he mentions that there are more and more “Millennial Shoppers” try to reach luxury brands.
Valentino "Nude"
Luxury Marketing
Chapter 3
Main Findings 2. The new customer care more about “Brand authenticity” Brand authenticity is important for the initial loyal customers, It remind us of the heritage, the pure tradition, craftsmanship and high quality of products. However, actual luxury customers are moore strict with acts of branding authenticity in the recent 10 years. According to an international survey by Cohn & Wolfe found that 87% of global consumers felt that it was important for brands to “act with integrity at all times,” ranking authenticity above innovation (72%) and product uniqueness (71%) when asked what they valued most in a brand. As Nigel Wilson mentioned, “Millennials are still willing to spend money on things they care about — but they find greater value in experiences, lifestyle enhancement, positive impact and social media currency, rather than in physical products themselves.”
Besides, knowing that craftsman is an important role in the fabrication process of almost all the classic luxury brand. Lots of craftsmen are not well paid however it must take over 8-10 years of training to be a luxury brand hired craftsman, nowadays the situation and the salary is unfair for them. As a result, as a popular brand in the luxury world, there’re other possibility to take more action related to eco-friendly products, or follow the fur-free trend to enhance company’s reputation.
Valentino "Nude"
Luxury Marketing
Chapter 3
Main Findings 3. Faced with a fierce competition within the world of luxury Faced with large fashion group like LVMH, how to survive in such fierce competition and stick to the brand’s tradition & essential philosophy? Innovative marketing strategies, new materials, new methode of fabrication might be the possible solution..
Photo courtesy of Burberry, Gucci, Hermès, Chanel
Valentino "Nude"
Luxury Marketing
Chapter 4
Problem & Objectives How can a classic but also creative, innovative, dynamic luxury brand satisfying their loyal customer while focusing on growth and diversification, without going too far away from the core of the brand and forgetting its past? We have two principals objective, first, create a new product segment corresponding to the cores and codes of Valentino. This new segment enable us to target a new category of customers and also win the loyalty of the current customers. We are not looking for compete with huge company like LVMH, we want to distinguish the brand with a new concept store. Then, the millennial is the new future. In few years, they will become principals customers of Valentino. So the brand must adapt its strategy to this generation thus they may monopolize the lingerie luxury market.Â
Photo courtesy of Valentino
Valentino "Nude"
Luxury Marketing
Chapter 5
Brand Extension : Nude Brief Concept WWH: Why: Since Valentino started to target younger customers but less rich since 2008, this 55 year-old old fashion house is hotter than ever after adopting several bold initiatives such as having built a co-creative relation with Maria Grazia Chiuri and Pierpaolo Piccioli, the launch of Valentino RED which aims to attract young clients and the collaboration with E-commerce website like Farfetch or Shopbop, Valentino keeps develop more kinds of products in their portfolio in order to be a “more innovative brand within the field of luxury” without forgetting his past.
Faces of "Millenials"
Valentino "Nude"
Luxury Marketing
Chapter 5
Brand Extension : Nude Brief Concept
What: A new lingerie brand may add fluidy and delicacy of femininity. “Nude” is a mysterious word, hard to be defined in an increasing divers world. As a luxury lingerie brand, it tries to discover different horizon of female body besides concepts of sexy, or innocent (most lingerie brand convey this kind of signal now). In contrast to Valentino haute-couture (more creative, experimental, which offers a wide variety of collection), Valentino R.E.D (using cold color’s combination to feature girly/dynamic design) or Valentino Garavani (accessories), Nude tries to create a unique brand identity, it can be defined as understated elegance. A mix of minimalism and femininity matching with almost all the apparels. We think about a new nude collection with different design. The aim of this new collection is to satisfy loyal customers, so the patricians. The collection will be very discreet, like nude definition.
Photo courtesy of Valentino & Christian Louboutin
Valentino "Nude"
Luxury Marketing
Chapter 5
Brand Extension : Nude Brief Concept
How: Recalling the codes of the brand, Nude keeps using the major colors which composed of Valentino collection: White, Red and Pink. All the products are designed and made in Italy. The main fabric are relatively natural, such as coton, silk and italien refined lace. Besides a sense of feminine and elegance, the brand’s promise is also about it’s comfort characteristic.
Photo courtesy of Orange Lingerie & Valentino
Valentino "Nude"
Luxury Marketing
Chapter 5
Brand's Positioning Prestige: The concept of prestige is a key to understanding customer’s value towards a luxury brand. Usually, just one or a few brands are seen as the most prestigious brands in consumers’ mind. Although the price of lingerie is not that high as Haute-Couture even some collections of ready-to-wear, our ambition is to be the most prestigious brand in the luxury lingerie world, just like Nespresso in the coffe category or Ladurée within the field of pastry featuring macaron for example. More about our Positioning: Before identifying the brand’s positioning, a few words about the actual luxury world… Though in general, luxury brands don’t care about their positioning at all, however as time go by, following the development of internet and the rise of E-commerce website, luxury goods especially the textile field becomes more reachable and being an desirable items for younger customers. Thus, according to luxury consumers’ behavior at this time, we try to propose a mix-method to identify the brand’s positioning. Identification(special traits): Valentino wishes to be an iconic, prestigious and refined lingerie brand with its strong promise : “Explore your pure femininity and elegance in a Nude way.” featuring it’s graceful, elegant and feminine design, becoming a desirable must-have items in every woman’s mind. Differentiation Comparing to the Agent Provocateur, which ‘s synonymous with an elegant, expensive, and erotic image, or Carine Gilson, which design the “couture lingerie” (kind of haute-couture within the world of luxury lingerie, Nude aims at conveying an atmosphere of grace and lightness, which respond to the core of the mother brand. Nude feature as its refined and stylish design, as well as comfortable and natural materials, In addition, the brand also offers an unique shopping experience in the hope that every customer are willing to spend their time in Nude’s boutique and take a dream item back at home.
Valentino "Nude"
Luxury Marketing
Chapter 5
Product Inspiration About design: The Design of first collection “Nude” will consist of 3 important main ideas, muse, flower and elegance. Crafted using the finest materials, 90% of female underwears made of luxurious silk, exclusive invisible Italian tulle and lace. The complete look also recall the core of the brand, “Nude” wishes our customers feel that the underwear is relatively light, refined but extremely comfortable, showing that wearing a beautiful underwear has no intention to be desired, but having pleasure in a such wonderful, caring and stunning artwork.
Visual: Diversity of light and pinky color, flower adds a sense of elegance and vivid beauty, image of future homewear. Photo courtesy of Ysé & Valentino
About list of products: There will be 3 kinds of product of Nude. They are bras & panties (underwear), body and nightwear such as pyjama. New products such as camisoles & dress will be possibly launched depends on the growth of sales since nightwear category costs more but also has significant profits as well. (Each luxury nightwear costs generally above 300€ )
About the uniqueness: Following every *Special Edition with co-creative director, every collection is limited! Customization, the best present for her: Once customers buy a piece of underwear, it’s possible to add embroidery such as client’s name or any words onto the pieces, by charging amount of personalization fees. We provide this service in order to accommodate specific individuals and improve customer satisfaction.
Valentino "Nude"
Luxury Marketing
Chapter 5
Pricing Strategy As luxury products are rich in craftsmanship,quality, precision the price will be indicated by care of the artisans who made the Valentino’s collection. Nowadays craftsman are less paid and underestimated, however, the spirit of craftsmanship is really important to a luxury brand, it increase the value of heritage, prestige and also exclusivity into the brand. The price doesn’t make luxury but luxury and carefulness make the price so to emphasize the caractere and importance of Valentino Nude, we will launch limited range of higher-priced options. The price of is higher than the normal lingerie brand, however generally our items are at an affordable price. This objective of pricing strategy is gaining the reputation and market share in order to create “A new luxury image”.
Bra :120 - 200 € ; Panty: 70 - 120 € In total one set of lingerie costs about 200 - 350 € Body: 250 €~ (personnalization if possible) ; Nightwear ; Pyjama: 350~ €
Photo courtesy of Nordstrom, Fleur de England and La Perla.
Valentino "Nude"
Luxury Marketing
Chapter 5
Place In 3 years - First Nude boutique will be in Rome (root of the brand), then Milan(trend and fashion center in italy), New York, Paris and Shanghai. 1.The main objective and function of each boutique aims to provide a precious and intimate moment for female customers to plunge into an exclusive Valentino Nude experience. (luxury experience) Knowing that our customer are mainly Patrician, who intend to show their signal to their peers instead of those who are from other social status.The decoration of each store
Photo courtsey: ValentinoRed Rome
2. Furthermore, Nude doesn’t intend to sell the collection online. Since it’s still a luxury brand of Valentino (even it target less rich clients however it remains it’s reputation and image as a luxury brand), Nude prefer to keep the scarcity & limited accessibility. We have chosen this development strategy because luxury is not easily available. Photo courtesy of Valentino
Valentino "Nude"
Luxury Marketing
Chapter 5
Communication Advertisement on TV and internet: Objective: We try to create a sense of glamour, do not confuse sexy and glamour. Advertising poster will be with a class interior background. To enforce luxury status of the brand, in the ads we will not focus on sales and prices. We will not try to convince customers. Our aim is to show elegance and minimalism of the product. Prestige and attraction: “The field of luxury, and luxury ads in particular, are sometimes criticized for being overly conservative, especially regarding gender roles.” As a result, Nude is going to enhance women’s active behavior in the consumption of luxury lingerie. Our advertisement will focus on the customers’ shopping experience, enjoyment and the pleasure that they gained from products, instead of being a desirable object.
Celebrity endorsement: Diana Kruger The initial idea of Nude’s muse goes to Diana Kruger, who has been played the role Helen in the movie Troy. Her look convey a sense of sophistication, elegance and femininity, that allows clients to have a look at the brand’s philosophy.
Valentino "Nude"
Luxury Marketing
Chapter 5
Packaging Packaging, as well as brand and product should be premium to provide the client exciting sensations tactile and visual. According to 7 Secrets of Highly Successful Packaging – ADDED VALUE published on PackagingNews, the packaging of a luxury product is part of the brand’s image and research shows consumers are willing to spend more on products if the packaging looks appealing and luxurious. As well as adding to the value of the product, luxury packaging fulfils various other roles; it enhances the image of the brand, increases consumer engagement through personalised packaging, performs a function, creates appeal and diversifies the product.
The packaging needs to be created by combining intelligent strategy and unparalleled craftsmanship. An important aspect of the process of creative packaging is also a selection of unique colours. For the packaging of Valentino Nude we propose a box wrapped around by tissue paper: for women in bright colors (like pale rose) with the addition of flowers.
Photo courtesy of lovely & La Perla
Valentino "Nude"
Luxury Marketing
Chapter 5
Targeting Strategy Prestige and conspicuous consumption, 4 segments Patricians – very wealthy and sophisticated customers who buy luxury, but want inconspicuous consumption. They do not want to be noticed except by their peers. Parvenus – also very wealthy but not sophisticated. They buy conspicuous luxury that signals to other people that the parvenus are rich, they want their status to be seen and they want to distance themselves from ordinary people. Poseurs – customers who are not wealthy but want to be it. They try to copy the parvenus conspicuous consumption to try to gain more status. Proletarians – customers who are not wealthy and do not mind.
Based on the 4 kinds of luxury goods consumption, we identify our the majority of customer are Patricians, who use relatively discreet signal to reveal their own social status. Furthermore, lingerie isn’t like clothes or jewelry that can apparently perceived as a loud signal, the characteristic of this product category is not that noticeable comparing to others. Our target core is women, aged between 20 and 45 years old. Wealthy women who buy lingerie for pleasure (hedonism).
Valentino "Nude"
Luxury Marketing
Chapter 5
Targeting Strategy These women like to be at ease while wearing their lingerie. She likes feeling a real woman and expresses her femininity by her lingerie. We also have an indirect target, gentlemen. Indeed, Valentino Nude can be a new idea of present for the women. The Valentine's Day, birthday or still Christmas are one of special occasions to offer Valentino Nude’s lingerie. Finally, we target of course our customers base Haute Couture and Prêt-àPorter because this purchase will be the continuity of the apparel.
Valentino "Nude"
Luxury Marketing
Chapter 6
Evaluation Advantages : 1. Discover a new market within the field of luxury lingerie Since so far there’re only calvin klein and other lingerie couture house in the luxury lingerie brand category, besides, thanks to Valentino fleshy and pure brand identity & image, its a good chance to develope the diversification. 2. Democratization of the price intends to attract more HENRYs (High earning but not rich yet) who can afford “Nude” but more pricesensitive.
Disadvantage 1. Valentino has no experience in the world of lingerie, this initiative might be risky… what if the existing customers have no interest in “luxury lingerie”? what of the price is still too high to attract new customer? 2. Lingerie is a special product category, if we doesn’t make appropriate strategy, the brand’s image will be identified as erotic or vulgar, which maybe harmful to the mother-brand. As a result, we must come up with no matter business or marketing strategy extremely carefully to avoid ruinning the reputation.
Valentino "Nude"
Luxury Marketing
Chapter 7
Conclusion The launch of a new sister brand might be risky, especially in the field of luxury, however, though respecting the tradition and the heritage of a classical brand is essentiel, faced with this changeable market, innovation and creativity are also “A Must”. With the “Nude” proposition, Valentino will discover more opportunities in a “New Way“.
Photo courtesy of Valentino
Valentino "Nude"
Luxury Marketing
Reference https://www.biography.com/people/valentino-21354709 http://www.dailymail.co.uk/femail/article-2239067/Jackie-Kennedys-weddingdress-star-glamorous-new-Valentino-exhibition-open-Somerset-House.html http://www.fashionmodeldirectory.com/brands/valentino/ http://www.hitwise.com/gb/articles/luxury-brands-reaching-millennialshoppers/?bis_prd=1 https://www.fastcompany.com/3067010/these-footwear-startups-offer-theprestige-of-made-in-italy-without-inflat https://frontify.com/blog/the-age-of-authenticity-why-brands-need-to-get-real https://www.reuters.com/article/us-valentino/glamorous-valentino-targetsnew-less-rich-client-idUSL0984832420080509 https://www.packagingnews.co.uk/luxury/insight-luxury/ipl-77-secrets-highlysuccessful-packaging-added-value-06-11-2017 Photo: http://www.gooddesignmakesmehappy.com/2015/09/best-awards-lonelylingerie.html http://sewingisrequired.com/2017/10/berkeley-bra-pattern-orange-lingerie/ https://videohive.net/item/city-ads-on-buildings/6335275 https://foreverlovemelondon.com/product/piramide-3/
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