Contents Introduction
Positioning Statement
Macro Environment
2
PESTLE Analysis
3-5
Micro Environment
7 8
SWOT Analysis : Givenchy SWOT Analysis : Planet I
Market Analysis
Differentiation Table Positioning Map
Consumer Analysis Consumer Profile
9 10 12
Brand Analysis
SWOT Analysis: Kenzo x Gentle Monster Brand Objectives Brand Onion
Marketing Mix
Price Product Place Physical Evidence Process People
Promotional Strategy
AIDA Model Marketing Campaign Objectives Display Advertising Email Marketing Snapchat Marketing
1
Conclusion Appendix Figures Reference List Bibliography
13 14 14 15 15 15 16 16 16 17 18 19 20 20 21 22 23-24 25 26
Executive Summary Kenzo`s collaboration with Korean – based eyewear brand Gentle Monster aims to create standout eyewear designs that combines Kenzo’s youthful spirit with Gentle Monster`s innovative design. This collaboration plays on traditional and contemporary Asian influences, with both labels pushing the boundaries of high fashion. Both sharing a design language with a keen understanding of the importance of heritage and how it influences the future.
Macro Environment/PESTLE Analysis
Political
Luxury tax in China has long been a source of significant revenues for the Chinese government, as anyone who has been able to compare the prices in China for luxury items to those in Hong Kong, for example, will be well aware. Yet the amount of money generated by China’s taxing such items is staggering. According to HSBC’s China Luxury Tax Report, the country raised RMB1.2 trillion – US$187.9 billion – in luxury taxes in 2010, an amount so large that it constituted 78 percent of all the central government’s spending. The term “luxury tax” is actually a composite of different taxes, being made up of import duties, VAT and consumption tax. These rates vary from product to product, but for products such as high-end cosmetics these rates equate to a respective 30 percent, 17 percent and 10 percent. This is very high when compared to other countries.(Devonshire-
Ellis.C,2012) This tax discourages chinese consumers to shop at home and encourages them to shop abroad for luxury brands in places like Europe where they can claim back their tax.
Economical 3
France’s economy is the fifth largest in the world and represents around one fifth of the Euro area gross domestic product (GDP). French economy endured the economic crisis relatively well. However, recovery has been rather slow and high unemployment rates, especially among youth, remain a growing concern for policy-makers. In recent months consumer confidence ended the quarter at a two-year low as inflation ate into purchasing power. (FocusEconomics, 2018)
Social
The youth of today are radically changing the definition of what it means to be young today. Born woke – informed, inquisitive and self-educating with a heightened awareness of race, gender and politics – they’re coming-of-age faster than any generation before them. Intuitively cynical of big brands, global media and the establishment, they’re searching out the authentic. (Protien,2017) Authenticity is what you can lose or gain a customer on. This is vital to a big luxury designer brand such as Kenzo to create an authentic brand voice that can engage with its audience without being condescending or cheesy.
Technological
The birth of the 3D printer gave way to innovative product design and infinite possibilities. Stereolithography lets designers create 3D models using digital data, which can then be used to create a tangible object. 3D printing is blooming in the eye-wear industry, it is changing how glasses are designed and manufactured. Many eye-wear manufacturers or even, individuals are starting to adopt this layer-by-layer method, mainly to differentiate their products from their competitors and bring more innovation to their glasses design. Finding comfortable glasses with a good design takes time. Also, the limited choices of design, in some cases, lead the wearer to sacrifice the design above their own comfort. Thanks to this cutting-edge technology, 3D printed glasses can be customized to fit the individual’s need. (Kusnadi.H, 2017)
4
Legal Environmental 5
LVMH and other luxury goods stocks could be active after Asiana Airlines Inc., South Korea’s second-largest carrier, said it would stop carrying baggage meant for “commercial purposes” on passenger flights bound for mainland China and Hong Kong from Oct. 22 for safety reasons. Luxury items such as pricey bags and cosmetics are often bought in South Korea and resold in China. LVMH also commented on China cracking down on travellers returning home with suitcases full of luxury goods. Shares in LVMH have plunged as a result. (Torsoli.A, 2018)
Kenzo is not known as an ethical brand however consumers are becoming more aware of bad ethical practices within the fashion industry and are making more conscious decision about who they buy their products from. A report released by in November 2007 by the WWF conservation group entitled “Deeper Luxury” grades 10 of the largest publicly traded luxury conglomerates on environmental, social, governance performance and reputation. Hugh Morrison, a spokesman for LVMH, said, “We have invested a great deal in understanding the issues and developing strategies to be best in class – we certainly expect future surveys to show our continued progress in this field.”(Friedman. V, 2007)
Fig 1
6
Micro Environment/Competitor Analysis Givenchy Paris Sun glasses range is a competitor of Kenzo’s sunglasses range. Although they are both part of the LVMH Group their main line ranges are very different in terms of style and the type of audience they are targeting. Givenchy’s sunglasses range is aimed more toward Kenzo’s usual target market.
S
• The designs of the sunglasses are very contemporary with interesting
details and features. • The range of styles in the 16-piece collections look like something that would appeal to Kenzo`s young, modern adventurous consumers. Compare to Kenzo’s collection of 6 sunglasses with only 2 different styles both sharing a lot of similarity. • Givenchy`s sunglasses range has a higher price point ranging from £220.00 to £360.00 but maybe be consider value for money because of the design and brand reputation. • Givenchy has more status globally with 11.3m on Instagram compared to Kenzo`s 1.7m. As a fashion house Givenchy is an iconic staple of high fashion, worn by many high-profile celebrities at events such as movie premieres.
W
• Kenzo have a slight competitive advantage as they are seen as a more youthful fun brand compared to Givenchy.
O
• They could develop their glasses
range into its own brand. This could create brand loyalty and help them gain a bigger share in the eye-wear market.
T
• With both brands situated in
Paris, creating luxury products they may encounter the same production cost, so it will not be difficult for Kenzo to achieve the same level of design the Fig 2 Givenchy`s glasses are at.
Planet I are an independent New York-based premiere eyewear brand
S
• Large range of over 40 glasses compared to Kenzo’s range. However, they an eye-wear brand and this is what they specialise in unlike Kenzo. • They are stocked in world renowned store opening ceremony, Vfiles and urban outfitters.
W
• The brand is not very strong, the brand identity is not very clear. This may result in lack of brand loyalty
O
• Build up a stronger brand to gain brand loyalty from consumers.
T
• A company with a stronger brand could take their share of the market and gain their customers.
Fig 3
8
Market Analysis Marketing Mix
Areas for differentiation
Tactics to achieve differentiation
Product
The design and marketing of the glasess
Price
Price in comparison to competitorsww, Price structure of the range
Including recognisably kenzo patterns, print and motifs in the designs and create a enagaing marketing campaign with the kenzo brand voice in mind.
Promotion
Celebrity/ influencer endorsement, social media campaign
Physical evidence
In store environment, packaging, editiorial shots.
Place
Process
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Location of stores, E-com platforms
In-store customer service, Web design, returns and after care
For this new collection our prices will be higher than the current collection we have but at a slightly lower price point than Some competitor. Create an engaging social media campaign using celebrities/ influcers that fit with the kenzo brand. Using Gentle Monster store space, uniquely designed packaging, Using Gentle monster`s stores
Using gentle monster stores. Creating use-friendly interfaces
Competitive advantage gained from differentiation Displaying the kenzo brand gives the customer added value as it lets others around them know that they are apart of the brand Having a slightly lower price than Givenchy but the same level of design and quality may encourage more sales from Givenchy consumers This will gain us lots exposure and media attention. By engaging with our customers it creates a rapport Gentle Monters store are a unique shopping experience, packaging creates added value. All of gentle monsters’ stores are in big cities often capitals, this is when we would find our target audience. All gentle monster stores are a unique shopping Fig 4 experience
Fig 5
“The luxury industry promotes values like trust, creativity, craftsmenship and inventiveness� - A. Babeau Norman.H.(2012).The business of luxury: Power, Politics and Profit[Online]
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Consumer Analysis
“The Kenzo customer is youthful in spirit and very confident,� - Humberto Lean H.Walker (2013) KENZO: It takes two to make a brand go right [Online]
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Fig 6
12
SWOT Analysis of collaboration
Brand Analysis
13
S
• The collaboration is addressing the problem within Kenzo`s current eyewear collection by creating a new collection that will bring their eyewear up to the same design level as the rest of the brand. This will help to further build Kenzo`s contemporary brand identity brought about by new creative directors Humberto and Carol Lim (Opening Ceremony) by showcasing Kenzo`s design signatures through the amplified lens of Gentle Monster.
W
• As this is a mini collection there is a considerably small range meaning less choice for the consumer, however this collaboration is as much a PR exercise as it is a collection launch • Limiting the sale of the glasses to only Gentle Monster store does reduce the accessibility as many of our consumers do shop online. However, engaging consumers in brand identity building instore experiences can develop loyalty to the brand.
O
• Building stronger relationships with consumers by engaging through the interactive immersive retail environment GM employs through its retail spaces • This collaboration could help Gentle Monster build a more westernised audience.
• Our social media campaign needs to be enticing enough to make people want to go to the stores but not reveal to much so our consumer don’t feel like they`ve already seen it online • The visuals of the campaign need to be authentic, incorporating Kenzo’s heritage modern style but also be engaging or they will not resonate with our audience.
T
Fig 7
Brand Objectives Build brand identity as a PR exercise by enhancing Kenzo`s stronghold within the eyewear market by creating a mini collection in collaboration with eyewear brand Gentle Monster that fits in with the current Kenzo brand aesthetic. Assistance Gentle Monster in acquiring a larger consumer group by aligning themselves with an international and contemporary luxury brand such as Kenzo that has more diverse consumer demographic.
Brand Onion
Fig 8
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Marketing Mix
Price
The products will be set at a price point in line with both companies existing ranges. Kenzo`s current sunglasses line are priced at £140. Gentle Monsters collections are priced around $190 to $500. The new collaboration collection will be slightly higher than Kenzo`s current collection to re-instate a sense of luxury but not too high a price point that we price out our audience out the market. Prices ranging at £150 to £250
Product
From this collaboration we will be creating a 6 pieces mini collection of sun glasses. By creating a new range of sunglasses that complements our current ready to wear collection. The designs of the glasses will be bold and contemporary with an Asian influence in mind. Designed within a red, black, green and white colour scheme inspired by Kenzo current ready to wear collection ‘La collection Memento N3’. Our collection will feature contemporary exaggerated silhouette frames.
Place
The glasses will be exclusively sold in all Gentle Monster stores in London, south Korea, USA, China, Hong Kong. We will be holding fun and interactive events in each of the stores on launch day. These events are to encourage our consumers to experience the world and not just view it. This will help increase footfall to Gentle Monster stores. We will also have an exclusive pop-up in the Shanghai store where we will be exclusively curating the store.
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Physical Evidence
We will also be creating exclusively designed packaging featuring our repeat pattern. Our pattern will also be featured on glasses cleaning cloth. Our glasses cases will be made as a miniature sculptural piece to emulate the customers experience at Gentle monster stores. This will create added value for the consumer.
Process
Customer experience is one of the main focuses of this collaboration. The glasses will be exclusively sold in Gentle Monster store, meaning that physical interaction with the brand is needed. Each store is uniquely curated with large sculptural pieces with disruptively designed space make for a unique shopping experience lending itself more towards a gallery visit.
People
Carol Lim and Humberto Lean have breathed bright, beautiful new life into a classic label. Made creative directors in 2011 they have re-aligned the brand with a younger, more tech- savy, fashion forward audience. By putting more emphasis on the digital side of the brand in terms of the store and online presents this encourages a younger audience. Our campaign will feature models who are familiar faces within the Kenzo brand. These models embody the keno spirit and resonate with our audience. Models such as Akito
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Promotional Statergy As our consumers are very active on social media, we will be creating an engaging social media campaign that focuses on the instore experiences to encourage footfall to Gentle Monster stores. The social media channels we will be using are facebook, Instagram and snapchat as these are the three our target audience are most active on and it allows us to share our imagery with a large pool of people. We will be partnering with key media publications such as Dazed and ID on paid for content to be produced in print and online
Fig 9
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Marketing Campaign Objective
To build a visual narrative of Kenzo’s heritage and reinforce their strong brand identity through the contemporary designs of Gentle monster through engaging and immersive online and instore experiences that encourages our audience to experience the world not just view it.
We will be using above and through the line marketing such as print media, display advertising, social Media and our events in Gentle Monster stores. Our main aim for this marketing campaign is to engage with our consumers and encourage them interact with the brand at Gentle Monster stores and gain a unique shopping experience. This is the best way to capture our audience as they are very active online and are always looking for new experiences.
Display Advertising Traditional forms of advertising such as display advertising on billboards in shopping centres, high streets, bus stops and train stations would be very valuable to this campaign. Our target audience are very trend savvy and fashion forward they would be seen regularly in shopping centres. Many young professionals living in inner city use public transport as their main mode of transport.
Fig 10
Email Marketing Emails will be sent to all consumers who have signed up to the mailing list with a personalised invitation the collaboration launch in Gentle Monster stores. This gives the consumer a sense of exclusivity, by making them feel a part of a select few. This will encourage engagement with the brand. The design of the email will be coherent with the brand identity, featuring our brand colour scheme and key visual touchpoints such as Futura font and eye logo. The emails will also encourage those consumers who are not able to attend a store event to still engage with the brand on social platforms such as Instagram and snapchat stories.
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Snapchat Marketing Snapchat is an extremely useful tool in terms of consumers directly interacting with the brand. Snapchat filters are a great way for consumers to digest key brand touch points such as logo and colour scheme. A filter would help generate awareness and interest in the brand as people send it to their friends and increase awareness of the brand. The filter will also allow consumers to try on the glasses before coming to the store. A live story of the events happening instore on the day of the launch would create more interest in the brand and desire to be a part of it. A live story will also allow those consumers are not able to attend to be a part of the events.
Fig 11
DiorColourQuake Facebook Lens back in September 2018. This is something what we would be aiming to create.
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Conclusion This report explores key factors that would affect the success of the collaboration between Luxury Designer brand Kenzo and high-end eyewear brand Gentle Monster.Analysis of the Macro and Micro environment allowed us to understand how technological advancement in 3D printing is changing the eyewear market and how our competitors would fair against our brand. A strong understanding of brand, consumer and promotion would help the brand to thrive.
Appendix
Posenr, H (2015). Marketing Fashion - brand identity onion. (Page 158)London: Laurence King Pub. Refer to Fig. 8
Posenr, H (2015). Marketing Fashion - Positioning Map. (Page 167 )London: Laurence King Pub. Refer to Fig.5
Jackson.T, Shaw.D (2008) Mastering fashion Marketing (Page 9) Basingstoke Palgrave Macmillian. Refer to Fig. 6
McClenaghan.V.(2018) The Promtional Mix AIDA Model. (Page 15) Refer to Fig. 9
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Figures
Figure 1 Devonish, K. (2018) Brand visual (own image)
Figure 2 Devonish, K. (2018) Givenchy SWOT Analysis (Own image)
Figure 3 Devonish, K. (2018) Planet i SWOT Analysis (Own image)
Figure 5 Devonish, K. (2018) Positiong Map (Own image)
Figure 4 Devonish, K. (2018) Differentiation Table
Figure 6 Devonish, K. (2018) Consumer profile (Own image)
Figure 7 Devonish, K. (2018) Brand SWOT Analysis (Own image)
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Figure 8 Devonish, K. (2018) Brand Onion (Own image)
Figure 9 Devonish, K. (2018) AIDA Model (Own image)
Figure 10 Devonish, K. (2018) Billboard Edit (Own image)
Figure 11 Muret.D (2018) Dior Facebook Lens
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Reference List Devonshire-Ellis.C.(2012). Luxury Tax in China.China Briefing. Available from: http://www.china-briefing.com/news/luxury-tax-in-china/ [Accessed 2nd November 2018] Friedman. V, (2007) Luxury brands fail to make ethical grade. Financial Times. Available from https://www.ft.com/content/dbe49fbc-9dda-11dc9f68-0000779fd2ac [Accessed 21 October 2018] Kusnadi.H.(2017). 3D Printed Glasses: Taking the Eyewear Industry to the Next Level. Sculpteo. Available from: https://www.sculpteo.com/ blog/2017/08/02/3d-printed-glasses-taking-the-eyewear-industry-to-thenext-level/?&&& [Accessed 12th October 2018] Muret.D.(2018). The new augmented reality initiative launched by Dior on Facebook – Dior [online image]. Available from https://us.fashionnetwork.com/news/Dior-keen-to-amp-up-high-tech-social-media-efforts,1015505.html#.W_LCBpP7Sqc [Accessed 19 November 2018] Norman.H.(2012).The business of luxury: Power, Politics and Profit. The Luxury Channel. Available from: https://theluxurychannel.com/magazine/the-business-of-luxury-power-politics-and-profits/ [Accessed 10th November 2018] Torsoli.A.(2018). Asiana Airlines’New bag Restriction is bad news for luxury retailers. Skift. Available from: https://skift.com/2018/10/20/asiana-airlines-new-bag-restriction-is-bad-news-for-luxury-retailers/ [Accessed 12th October 2018] Wallis.C.(2014) Missguided marketing strategy.issuu. Available from: https://issuu.com/chlswlls/docs/missguided_marketing_strategy [Accessed 30thOctober 2018]
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Bibliography Devonshire-Ellis.C.(2012). Luxury Tax in China.China Briefing. Available from: http://www.china-briefing.com/news/luxury-tax-in-china/ [Accessed 2nd November 2018] Friedman. V, (2007) Luxury brands fail to make ethical grade. Financial Times. Available from https://www.ft.com/content/dbe49fbc-9dda-11dc9f68-0000779fd2ac [Accessed 21 October 2018] Jackso.T, Shaw.D (2009) Mastering Fashion Marketing. Basingstoke: Palgrave Macmillian Kusnadi.H.(2017). 3D Printed Glasses: Taking the Eyewear Industry to the Next Level. Sculpteo. Available from: https://www.sculpteo.com/ blog/2017/08/02/3d-printed-glasses-taking-the-eyewear-industry-to-thenext-level/?&&& [Accessed 12th October 2018] McClenaghan.V.(2018). Fashion Branding and Communication: The Promtional Mix. Available from https://mycourse.aub.ac.uk/bafco4/wpcontent/uploads/sites/36/Promotional-Mix.pdf [Accessed 1 November 2018] Muret.D.(2018). The new augmented reality initiative launched by Dior on Facebook – Dior [online image]. Available from https://us.fashionnetwork.com/news/Dior-keen-to-amp-up-high-tech-social-media-efforts,1015505.html#.W_LCBpP7Sqc [Accessed 19 November 2018] Norman.H.(2012).The business of luxury: Power, Politics and Profit. The Luxury Channel. Available from: https://theluxurychannel.com/magazine/the-business-of-luxury-power-politics-and-profits/ [Accessed 10th November 2018] Posner.H (2015) Marketing fashion: Stratergy,Branding and Promotion(Second edition).London:Lawrence king publishing Torsoli.A.(2018). Asiana Airlines’New bag Restriction is bad news for luxury retailers. Skift. Available from: https://skift.com/2018/10/20/asiana-airlines-new-bag-restriction-is-bad-news-for-luxury-retailers/ [Accessed 12th October 2018] Wallis.C.(2014) Missguided marketing strategy.issuu. Available from: https://issuu.com/chlswlls/docs/missguided_marketing_strategy [Accessed 30thOctober 2018]
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