PHILIPP PLEIN
BRAND MARKETING AUDIT
CONTENTS
1.
CONTENTS PAGE 3. EXECUTIVE SUMMARY
4. INTRODUCTION 6. BRAND EQUITY 7. MARKETING MIX 8. CONSUMER SEGMENTATION 10. COMPETITOR ANALYSIS 12. MICRO/MACRO ECONOMIC FACTOR ANALYSIS 13. SWOT ANALYSIS 15. RECOMMENDATIONS 17. BIBLIOGRAPHY
EXECUTIVE SUMMARY
Within this brand marketing audit, I will be reporting the origins of my allocated brand Philipp Plein and the reasons for it being a luxury brand in the market level. I will explore Maslow’s Hierarchy of Needs and the current consumption patterns. I will discover whether there are any potential emerging consumers. Through the PESTEL framework, I will assess the Micro and Macro factors, for example environmental issues that Plein faces. I will discuss the brand’s identity, and how it’s different to other competitors such as D&G due to its high quality and innovative social media advertisements. I will build a product portfolio reviewing the Plein products, such as its popularity of T-Shirts and decline in Children’s-wear.
INTRODUCTION
Philipp Plein is a German fashion designer from Munich born in 1978. Young Plein started off studying at law school but soon realised he wanted to become a designer instead. After this change of heart, his main business, Philipp Plein, was founded in 1998, as a furniture company. This really excelled in 2003 when Plein designed a Champagne Lounge for Moet & Chandon at a Dusseldorf Trade Fair. He bought with him many military jackets studded with crystal skulls, a design he’d previously been using on cushions, but the jacket’s purpose was merely to dress the stainless steel clothing rails he had to offer, this was the accidental start of Plein’s career in the fashion industry. Plein then continued to make bags and accessories as a sideline,, using leftover furniture leather which caught his eye. However people started to want the jackets and bags more than the furniture . As family and friends showed interest in his designs, his client list began to expand quickly and this is when his entrepreneurial skills kicked in convincing him to start selling the jackets. Plein was making a name for himself in the world of fashion. Not long after, in 2004, the hard work had paid off when Plein launched his very first casual fashion collection on the runway, including lines for men, women and kids all at once. The military jackets became everyone’s favourites, studded with Swarovski crystals. His accessory launch followed a year later and Plein then went on to win the ‘National Brand of the Year’ as well as the ‘New Face Award’ in 2007. Plein’s brand recognition went sky high, causing many celebrities to be associated with his brand. Even in early years, famous models and Holly-
wood celebrities would be starring in his outstanding shows featuring full sized roller-coasters and mesmerizing light displays, followed by wild after parties with DJ’s. Plein was unapologetically extravagant. Heide Klum invited Plein to dress the girls from Germany’s Next Top Model, furthering his fame even more to the point where everybody wanted to be dressed by Plein.
2000 Launch of PHILIPP PLEIN Home collection
2009
Flagship store in Monte Carlo opened
2006 Launch of PHILIPP PLEIN accessories
1998
2008
Establishment of the PHILLIPP PLEIN company
Launch of PHILIPP PLEIN fashion collection (Naomi Campbell as testimonial)
2004 Launch of PHILIPP PLEIN casual fashion collection
2010 Launch of e-commerce store and first PHILIPP PLEIN Women’s fashion show SS11 during Milan Fashion week
2012
2017
Launch of PHILIPP PLEIN junior collection
‘Hot Felon’ Jeremy Meeks (who went viral for his mugshot) debuted his modelling career at New York Fashion Week, walking for Plein’s AW17 show.
2014 SS14 ‘All black’ campaign shot by Francesco Carrozzini and FW1415 Men’s underwear collection shot by Steven Klein
2013 Singers Iggy Azalea and Grace Jones perform at his SS14 Womenswear and FW1314 fashion shows
2015 Azealia Banks, Tyga, Snoop Dogg and Tinie Tempah perform at many of his Womenswear and Menswear shows.
BRAND EQUITY
Brand Equity is the perception of a brand as a whole from a consumer’s point of view, rather than the view of products they offer. When Plein started the business, he confessed that he knew people loved the hype of bling, therefore planned to sell expensive instead of cheaper products as part of his strategy. His method was that if he sold a t-shirt for €500 , then only the best shops would automatically stock it and it would stand out more, rather than selling basic sweaters, which would lead to the brand having no identity and people would shop elsewhere. He believed selling a brand’s image and identity is just as important as selling his clothes. The Plein brand integrates desirability and confidence with a healthy dose of ‘sex and rock ‘n’ roll’ and the element of bling is something that is welcomed by Plein massively. He admits it is very difficult to find a place amongst already established brands, which is why he makes his brand strong, powerful and masculine for men, and sensual, elegant and sexy for women, being centre of attention, which is why his collections include stand out statement pieces, such as croc and fur jackets. His collections are daring, tight and short, aiming at his young, successful and self-confident
target market. He is known for his embellishment and metallics, and the prices are high to reflect the identity of the brand. His signature is a jewel-encrusted skull, which gets plastered on t-shirts, jackets, belts and rings. Paris Hilton, Rita Ora and Lindsay Lohan are big fans of the skull design. Brand Loyalty is exceptionally valuable within the fashion industry, as consumers will purchase from brands that they know and love, ensuring they will always be happy with their purchase because its from a reliable business. From primary research collected from a survey I did, Philipp Plein as a brand is less well known than competing brands such as Alexander Wang for example. Therefore, it is important for the Plein brand to maintain the loyalty they have with existing consumers, by being consistent with their prices, and following a theme within the product range, of dark colours, gothic prints and jewel encrusted garments, that are already popular amongst Plein consumers. A way in which Plein aimed to attract new consumers, was celebrity endorsement on the ‘Philipp Plein Intenational’ Instagram page. Here, polaroid photographs of famous models such as Iriana Shayk (Victoria Secret model) , with signatures and personalised notes writ-
ten on, were uploaded to attract a wider audience. Those who are fans of the models, or for example Victoria Secret, and are not necessarily familiar with the Plein brand, will now be attracted to the photograph, which promotes Plein’s FW1819 ‘Plein Space Invasion’ fashion show. This may lead to more people purchasing Plein’s garments now that they know successful celebrities wear the brand, meaning it must be reliable and good quality. Brand personification is important within a business to enable customers to identify to a brand that closely resembles themselves in terms of personality, leading them to stay loyal because they think they have a connection to the business. One way in which Plein ensured this was applied to his business by announcing American Football player Braxton Miller as his new brand ambassador. As Miller’s profile continues to rise, he has become known for impacting the fashion industry, bringing out his own t-shirt collection with designers. This partnership with the Plein brand will secure his space in the luxury fashion industry as well as his leadership; confidence and passion to succeed are attributes that personify the Plein brand.
MARKETING MIX
Philipp Plein is a luxury brand within the fashion industry. Giving many ranges of products, such as Womenswear and Menswear, Plein offers different products through extension lines such as Children’s-wear, Plein Sport, and Plein Home. This gives the business many segments to target, all offering high quality to their consumers. The luxury value is created by exclusivity to wealthy consumers, provocative statement pieces and creating new trends to fulfil the successful, young consumers that Plein aims to target. Across all Plein’s products, there is a calculated price strategy. From the very start of the company Plein wanted to represent the brand as expensive, so that only certain types of people could buy it. A product in the star stage of its lifecycle, would be in the growth stage, with a high amount of product sales. Within the Plein brand, the Menswear range now accounts for more than half of the brand’s total sales. Particularly the graphic t-shirt which is a star. The controversial t-shirts featuring phrases such as “Rich A$$” have high market share, bring in a lot of money to the business because they are popular and should be kept on the line due to their high growth. The cash cow of Plein’s products would be the Mens and Womenswear jackets. These are all extremely expensive, one croc jacket lined with mink fur rakes in a massive $80,000 per sale, however roughly only 6 are sold per year due to its price tag, therefore not a constant cash flow into the business. These jackets are what started the Philipp Plein brand and were more popular when they were first available for sale, however many people would struggle to purchase such expensive items regularly. A question mark within the Plein brand would be the kids range. These have high cash demands with low returns, because it is a whole range that is less popular not just one item. Many businesses will decide to either invest heavily to try and gain more profit, which wouldn’t necessarily work for Plein
as fewer people would rather spend a vast amount of money on their kids than themselves, the business would sell off the range, or invest nothing and generate as much cash as they can with what’s already available. In terms of promotion, Plein releases campaigns to advertise his new collections, staring celebrities such as Lindsay Lohan and Ed Westwick. Celebrity endorsement is an important way to promote products and collections because consumers aim to be like celebrities and want to live their best lives. It’s also important to use celebrities because it opens up a new demographic of target audience. The Plein brand is consistent with his social media account Instagram, making the page look outstanding. Due to the rise in social media, Plein supported his campaigns with hashtags which raises awareness of the brand on different media platforms, across a younger target audience. Once the consumer has seen adverts of the Plein brand, it is important that consumers keep the thought of the brand in their heads throughout the seasons, making repeat purchases common. Therefore, social media is used regularly when campaigns and fashion show photographs aren’t being released.
CONSUMER SEGMENTATION
Consumer segmentation is the way in which the audience is divided into specific groups, making it easier for the business to target, depending on similarities such as age, gender, interests and spending habits. The target market for Plein’s business is for young, confident and successful individuals with disposable incomes. Plein’s aesthetic is full on flashy, something which he understands and embraces; he is not trying to attract the same clients as, for example, Celine, he knows those clients have different needs. Maslow’s Hierarchy of Needs has 5 tiers, these range from basic needs that people need to survive, to psychological needs that boosts esteem and finally self-fulfilment needs. Many people will fulfil their needs through consumption by shopping to relieve stress, cure bad moods and create a short term fix to their problems. High end shopping from Philipp Plein would create a sense of achievement and worth, because you are able to buy such luxurious products. People who regularly shop at Philipp Plein, not seeing the purchases as ‘treating themselves’ because they have so much disposable income that price is no problem, are ones who may care about authenticity rather than the perception the brand gives them. The memory and pride that comes with being able to purchase a genuine luxury good is part of the reason some seek authenticity. In contrast, other people spend such money on luxury products from Philipp Plein purely
because of irrational buying. The customer will see something spontaneously and decide they need it, mostly influenced from peer pressure and trends, and the perception that non- luxury goods are inferior. If you walk past somebody in the street wearing a Philipp Plein skull, you want people to see you wearing a Philipp Plein skull, so that they know you can afford it, and the garment will give you pride while being worn. The consumers have changed over the years due to the brand’s product range changing and growing so fast. Starting as a furniture company, high end furniture made from croc skin generally wouldn’t be purchased by young individuals, perhaps the older generation to decorate a house of their own. As the brand grew more popular over the years, the typical male client is described as a professional soccer player.’ We are a rock-star brand’ says Plein to the Evening Standard. His fan base includes Cristiano Ronaldo and Lionel Messi. This is no doubt linked to the ‘sex and rock ‘n’ roll’ brand equity, which many male celebrities follow. In terms of womenswear, the target demographic started off a little older, as many young girls can’t afford a £4000 leather jacket. Older celebrities such as Beyonce and Fergie sport the Plein brand. However recently, due to excessive social media influences, I think younger girls are starting to buy and own expensive luxury products purely to parade brand names and logos.
MARKET PROFILE
COMPETITOR ANALYSIS
Competitors of Philipp Plein feature similarities between both brands, for example, the products, brand essences, target markets and prices. Alexander Wang is a competitor of Plein in the eyes of a consumer due to its product range and brand personality. Alexander Wang would sell a graphic T-Shirt for around £250-£350 and Philipp Plein’s for around £350-£450, probably due to excessive embellishment of the skulls. One specific comparison that hit social media was caused by Wang on Instagram, claiming his Alexander Wang’s X H&M collaboration 2014 was copied by Philipp Plein’s Plein Sport AW1718 collection. Wang claims the Plein Sport catwalk show featured obvious similarities to his, starting from the athletic running track scenery, to the actual sportswear collection itself. The brand essence of both designers are similar in which monochrome and muted colours are present throughout many collections to reflect the brand’s personality, and when aiming at a similar target audience of successful rich males within the luxury fashion sector, it is likely the two brands may clash at some point. From a customer’s point of view, they may choose to purchase from Wang’s collection rather than Plein’s due to it being collaborated with H&M, this makes it more affordable. However those who have loyalty to Philipp Plein’s collections, clearly have the disposable income to purchase such hefty price-tags, leading to repeat purchase from the brand instead of perhaps one time purchases that someone may buy from the Wang X H&M collection who isn’t necessarily loyal to Wang. Another competitor of Philipp Plein is Saint Laurent, with its comparable brand essence, overtly sexy with high energy, and similar price tags to match. Those who choose to shop at Plein instead, may prefer Plein’s raunchy USP, instead of a more sophisticated one presented by Saint Laurent. Plein’s brand has surprised many, due to it being less than 20 years old but still so successful, those who like to purchase unsung and perhaps obscure brands would choose to purchase from Plein, appreciating the less advertised and well known luxury brands.
HIGH PRICE
HIGH QUALITY
LOW PRICE
LOW QUALITY
MICRO/MACRO ANALYSIS
MICRO FACTORS Immediate factors that affect the Plein brand are the competitors such as Alexander Wang and Tom Ford. It is important to control these by advertising so that consumers are more aware of the Plein brand which will lead to more sales.
MACRO FACTORS SOCIAL: The social impacts of Plein are millennials becoming more valued in the fashion industry now that they are making more purchases and holding a lot of power over brands. Although the younger audience are buying more, they have less disposable income, therefore want to find the cheapest deals at high-street stores like Topshop. This gives consumers a sense of joy that they’ve been able to look almost the same as someone who’s shopped at brand such as Plein, but for a much cheaper price. Nevertheless, the older consumer would still prefer to shop at Plein as this brings exclusivity, enabling some consumers to feel superiority over those who can’t afford it. TECHNOLOGICAL: Due to a rise in technology, online shopping has become very popular in recent years. Millennials are interested the easiest shopping experience they can get. Available filters to see which item of clothing you’d like, which colour you’re interested in and which style. Although some do prefer to walk into a shop, due to the overall experience of a day out shopping: the greeting at a shop door, the atmosphere within the shop, the social discourse and opportunities to ask advice by a professional. I believe when purchasing a luxury item such as garments from Philipp Plein, consumers would like the instore experience as they enjoy the personal service which would make you feel special; overall elevating the whole shopping experience. ENVIRONMENTAL: In the recent years, worldwide many people are becoming more considerate towards the environment. Many people believe it’s environmentally naïve to shop at stores that aren’t sustainable, and many believe that luxury stores like Plein can afford to be careful with their resources, rather than high street brands who just want to use the cheapest materials for the cheapest price.
LEGAL: A major problem that Plein has faced is claims of plagiarism. In 2017 Alexander Wang called out Philipp Plein Sport on Instagram for copying his 2014 show with a collaboration with H&M. Many elements of the show, such as the racetrack scenery are similar, and Wang isn’t happy about it. Another controversy shortly after was Plein vs Puma. The sports brand Puma claims their trademark puma logo is being copied by Philipp Plein. Plein took this disagreement to Instagram, captioning his image “Just received a LOVE LETTER from PUMA trying to take legal action against us because they are trying to find similarities between their jumping KITTY KAT logo with a tail and our TIGER HEAD with claw stripes.”. These accusations may be off putting to consumers as they may believe their garments are no longer exclusive.
SWOT ANALYSIS
STRENGTHS The success of the Philipp Plein brand has nobody to thank but Philipp Plein himself. Starting an independent business at a young age is daring and the reason to this day the brand is so successful is due to his audacious entrepreneurial skills. Plein is known for extravagance, excess and bling. He delivers the industry’s most flashy shows with huge budgets, from exploding monster trucks, Snoop Dogg performances and rappers riding in on jet-skis. He makes sure guests are always served ‘Champlein’ champagne mixed with Red Bull, his signature drink. This effort doesn’t go unnoticed, his aim to make himself striking and stand out from a lot of well known brands has made the business reputable. “I am the fucking brand. That’s one of our differences. I do what I want and that’s what we are. It’s a lifestyle; it’s a movement. Being an outsider has certainly paid off. “ (Philipp Plein in an interview with Harpers Bazaar 2009)
OPPORTUNITIES For the Plein brand to reach its full potential, the brand should advertise more on TV adverts, magazine adverts or billboards. From my research, many people were unaware there was a Philipp Plein store within London, most likely due to the lack of advertisement from the Plein brand. Although this may be a strategy to create exclusivity, the way the brand promotes on Instagram is exceptional and I believe if this is continued throughout different media platforms, the brand will become more well known, therefore leading to more sales.
WEAKNESSES Although Plein’s brand is well known in some parts of the world, the brand isn’t massively well known to everybody in the UK, as my survey supports. This may be because compared to its competitors, the brand hasn’t been established as long. For example, Philipp Plein has been around since the early-mid 2000s compared to Dolce and Gabbana who have been around since the late 1980s. This means many people have been aware of D&G for several more years, therefore may seem to be a more reliable brand to some people when purchasing a luxury item.
THREATS In the world in which we live in today, fast fashion is increasingly jeopardising luxury brands. It is easy to make copies of the Plein skull T-Shirts and many high-street shops sell trainers with studs on similar to the Plein brand’s. Although people buy from Plein for quality, many consumers will look for the best deals and cheapest versions of an item; if they look the same and are cheaper, most likely people are going to buy the high-street garments instead.
RECOMMENDATIONS
Although the Plein brand is clearly a success, I believe the negative media attention that Plein himself gets, for example, for copying Alexander Wang’s collection and losing a battle against PUMA for copying their T-Shirt, Plein has been labelled ‘The Donald Trump of the fashion industry’. This negative press taints the brand’s reputation and although the ‘bad boy’ persona fits his rebellious brand’s personality; the more discerning consumer might be put off. I also believe Plein should open more stores Worldwide and promote them on other media platforms rather than just Instagram. A vast amount of wealthy Asian and Eastern Europeans regularly buy from the stores, however, from my research next to none have even heard of the Plein store on the well-known Bond Street in London. Lastly, Plein should focus more on making the Children’s-wear range more affordable, as I believe it would be successful if the prices weren’t so huge, as many people wouldn’t spend thousands on their child of that age.
Intro https://en.wikipedia.org/wiki/Philipp_Plein  Official Website. Philipp Plein. Retrieved on 19 January 2017. http://www.famousfashiondesigners.org/philipp-plein Timeline http://world.philipp-plein.com/en/about/history Segmentation https://www.businessoffashion.com/community/people/philipp-plein
BIBLIOGRAPHY
Brand Equity https://www.harpersbazaar.com/uk/fashion/fashion-news/news/a39040/philippplein-brand-profile-and-interview/ By Ella Alexander Dec 21, 2016 Marketing mix https://www.plein.com/gb/home/?pps=true&nsview=true Consumer Segmentation https://www.shopify.co.uk/encyclopedia/customer-segmentation https://www.simplypsychology.org/maslow.html http://www.the-glare.com/philipp-plein-interview/ In the mirror presents interviewed by Dorit Papenheim Competitor analysis https://www.wmagazine.com/story/alexander-wang-accuses-philipp-plein-of-plagiarism-january-2017-plein-sport-show by Marissa g muller February 14th 2017 Micro/Macro analysis http://www.thefashionlaw.com/home/puma-to-philipp-plein-stop-using-our-logo TFL January 5 2018 http://wwd.com/fashion-news/fashion-scoops/plein-sport-reacts-toalexander-wang-accusation-of-copying-fashion-show-10803351-10803351/ SWOT analysis https://www.harpersbazaar.com/uk/fashion/fashion-news/news/a39040/philippplein-brand-profile-and-interview/ Interview for Harpers Bazaar by Ella Alexander Dec 21 2016 http://www.thefashionlaw.com/home/philipp-plein-the-donald-trump-of-thefashion-industry TFL August 23 2017 Images https://www.instagram.com/philipppleininternational/?hl=en http://world.philipp-plein.com/jp/philipp-plein-universe-campaign/4774/ philipp-plein-fw-1718-advertising-campaign http://world.philipp-plein.com/jp/about/history https://www.google.co.uk/search?q=philipp+plein&source=lnms&tbm=isch&sa=X&ved=0ahUKEwic68Wpkr3ZAhWKCcAKHQbuArwQ_AUICygC&biw=1366&bih=662
BRAND MARKETING AUDIT ALEX BIGNALL