Acne Studios Brand Marketing Audit

Page 1

Brand Marketing Audit Katie Challenger


CONTENTS 1. EXECUTIVE SUMMARY Pg. 3 2. INTRODUCTION 2.1 Brand Origin Pg. 4 2.2 Brands Founding Year Pg. 4 2.3 Designer Background Pg. 4 2.4 Initial Product Offer Pg. 4 2.5 Brief Brand Timeline Pg. 4 2.6 Brand Extensions Pg. 4 3. BRAND EQUITY 3.1 Aakers Model Pg. 6 3.1.1 Price Premium

3.1.2 Percieved Quality 3.1.3 Brand Associations 3.1.4 Brand Awareness

4. MARKETING MIX 4.1 Product Pg. 10 4.1.1 BCG Matrix 4.2 Price Pg. 10 4.3 Promotion Pg. 11 4.3.1 AIDA Model 4.4 Place Pg. 11 5. CONSUMER SEGMENTATION 5.1 Visual Consumer Profile Pg. 12/13 5.2 Brands target demographics and psychographics Pg. 13 5.2.1 How the brand meets the needs of their comsumers? 5.3 Maslow Hierachy of needs Pg. 13 6.COMPETITOR ANALYSIS WITH 6.1 Current Competition Pg. 16 BRAND POSITIONING MAP 6.2 Positioning Map Pg. 16 7. MICRO AND MACRO -ECONIMIC 7. 1 Pestel Factors Pg. 19 FACTOR ANALYSIS 7.1.1 Enviromental

7.1.2 Social 7.1.3 Technological 7.1.4 Economic 7.1.6 Legal

8. SWOT ANALYSIS 8.1 Strengths Pg. 20 8.2 Weaknesses Pg. 20 8.3 Opportunities Pg. 20 8.4 Threats Pg. 20 9. RECOMMENDATIONS Pg. 24 10. BIBLIOGRAPHY Pg. 26,27


PA G E 3 . E X E C U T I V E S U M M A R Y

This marketing audit will evaluate how Acne studios, a Swedish brand co-founded by Jonny Johansson, have strategically become a popular, worldwide, luxury brand. It will consider the essential internal and external factors that have led to their success, give an overall background into the brands consumer’s and competitor’s, and investigate how Acne Studios have prospered in the luxury market.


PA G E 4 . I N T R O D U C T I O N Acne Studios is a Swedish based fashion with 650 retailers over 40 countries, originally known for their denim products. The Swedish Powerhouse originally started in Stockholm, the nations capital. €10,000 allowed 4 young creatives to start something fresh, new and unique. Jonny Johansson and his partners convey a unique story unlike most other brands. To begin with, the brand had no named designer, just a group of creative minds working together with strong visual identity. It began its fashion journey in 1997 when 100 pairs of straight- legged jeans with a simple red stitching detail were given to 100 influential friends (Fury, 2015). Johansson’s strategy was to produce these jeans to make the industry notice. Rapidly, the jeans became popular and the brand started to expand by exploring other products (The Evolution of ACNE studios, 2015). As a child in school, Johansson said “I was always embarrassed by how my dad was dressing” (Johnson, 2016). Although, after a while Johansson began to become more unique, he started not to care so much about fitting in but more about the communication with fashion. Fashion wasn’t an interest for Johansson until his father opened his eyes into a completely different industry and changed his ambi-

tion. He didn’t have an education in fashion; just a dream to produce something new and unlike anything else. This passion, combined with the strong visual identity gives Acne Studios a huge competitive advantage. within the luxury market. Johansson stated “for me it’s been learning, and trial and error. I like current and honest fashion. Working with my life, things that are very close to me at that moment, makes it current for me.” (Jonny Johansson Biography, ). As the brand was becoming popular they decided to explore platforms in print, Acne Paper a bi-annual magazine which was launched in 2005, as well as opening their first store in Berlin. In 2008 they teamed up with Lanvin to create an entire new denim line, in addition that they opened their first store in Paris, leading onto opening first store in Dover Street Market in 2010. Becoming more worldwide they decided to launch their first Asian flagship store in Tokyo. Fashion retailers such as Acne are the most international retailers, as was noted by Doherty (2000), who recognised that the international expansion of fashion retailers in Europe outweighs the foreign market activities of retailers operating within other product sectors.

Acne Studios has collaborated with many different artists, brands etc including Jack Pierson. Pierson told Vogue “I think Acne is one of the most dynamic fashion brands operating.” Their collection used subtle references which link with Acne Studios simplicity. Pierson was thrilled when Acne Studios wanted to combine their uniqueness with his arty streak, Pierson wanted meaning and emotion to be conveyed in his collection (Yotka, 2016). Therefore, Acne studios easily possess the elements needed to be a luxury brand, identified by Dubois et al (2001). Their collections with artists clearly show the excellent quality and aesthetics of their clothing, whilst the personal history of Johansson clearly give them an advantage. These elements all sum up to their high price point, which allows them to continue in the luxury market, and the report will look deeper into how they do this.



PA G E 6 . B R A N D E Q U I T Y

Acne Studios achieves brand equity through a number of ways as measured by Aaker (1996). The main way they do this is through price premium. This is a loyalty measure as the customers are willing to pay high prices for this brand when there are many cheaper alternatives for similar products to Acne’s such as COS, Reiss and Zara. However this could be seen as a negative for Acne as the market is flooded with many competitors, potential customers are more likely to go to other brands. Because of this Acne has brand equity through other measures, one of these is perceived quality. This gives them their high pricing strategy and differentiates them from their lower price competitors, giving them advantage because consumers want better quality products. This quality gives them a good brand personality as although it can be seen as boring (Fury, 2015) their simple but high quality range is their differentiation which makes the brand interesting. Another strength of Acne is their ‘organisational associations’, because of Johansson. This gives brand equity because he values being innovative and strives for high quality (Aaker, 1996). This can be helpful when brands are similar such as in the fashion industry as it separates Acne from its competition. To improve Acne’s brand equity they could try improve brand awareness. From researching they do not locate any look books around any stores or advertise new collections. Because of this they may only be recognised by a few consumers rather than a larger audience who can recall or have an opinion on them. For niche brands like this recognition is needed to be successful.



I TOLD JONNNY WE NEEDED RECOGNISABLE BAGS...HE WENT FULL ON. NOW YOU

“


SEE THESE BUTCH GUYS WALKING AROUND WITH PINK BAGS EVERYWHERE. MIKAEL SCHILLER, ACNE STUDIOS EXECUTIVE CHAIRMAN

“


PA G E 1 0 . M A R K E T I N G M I X

Product

They explore a range of products and created logo range on their website which is more casual, ready to wear products including sweatshirts and t-shirts with the face logo. However another ready to wear range is the Blå Konst collection which is collaborated with the artist Alex Knost. The collection is inspired by Knost’s personal style, which resulted Johansson asking Knost to create images for ‘Blå Konst’ so he created four sculptural artwork using pieces for the collection (Blå Konst Editions, Acne Studios). Most of Acne Studios products aim towards the target market of both males and females at the age of 18 to 35 but for upper class earners. The core product for Acne Studios is affluence and stylish apparel, as Acne Studios is more expensive than other brands, some feel like its an accomplishment to purchase the clothing. As for the actual product, Acne Studios uses style to entice the audience, from radical designs and unique features. However the packaging is a statement itself as everyone wants to carry round the pink bag from Acne Studios. Another quality is that they explore fabrics and a eclectic use of materials, with some being custom developed. This also links with the Augmented product because you are paying for the quality of the clothing, which Acne Studios can assure consumers that they will not be disappointed. Regarding BCG Matrix, Acne Studios star of the products is the sunglasses, coats, jeans and sweatshirts some which go into cash cows such as jeans being a big seller along with sweatshirts, coats and t-shirts. Products that are becoming questionable are shoes and bags and the dogs which aren’t the best selling are underwear and swimwear as there isn’t many items to sell.

Promotion

Acne studios have their own magazine, Acne Paper which is a great way to educate and persuade consumers. A lot of the brands say that acne studios never resorts to marketing tricks. Acne studios stay very low when it comes to advertisement and social interaction with the general public, there main source of acknowledgement for the season would be from their shows at fashion weeks or there show room in paris, or through collaboration with brands such as Lanvin, a denim brand. Acne’s packaging is very fitting, it is simple just like the brands image. Pink bags embossed with ‘Acne Studios’ tied up with pink handles, its the kind of bag you don’t want to throw away. Relating to the AIDA model, the first stage is awareness and Acne Studios have created an awareness to their audience through colour and imagery, the iconic pink is what the audience recognise to be Acne Studios. Secondly, the interest stage is for brands to advertise new collections and become competitive for consumers, Acne Studios don’t use many advertising tactics, they mostly just show collection in fashion weeks, or online however their consumer base is wide enough so they don’t need to expose the brand with advertisements. Next, the desire stage, Acne Studios is known for its quality of fabrics and that is what consumers desire with buying products, so that is what Acne Studios offers. The final stage is Action, and this is when consumers purchase the product, however Acne Studios doesn’t need to worry about making a sale because its reputation for good quality products and unique style speaks for itself with consumers, they are eager to buy products as it is named as a luxury brand.


Acne Studios use a skimming strategy to enter the high quality luxury market at high prices. The brand has done this because they want to engage the upper class audience who can afford high end products for extreme prices. Different products range their prices however they all are a prestige price.

Place

Acne uses direct and indirect distribution channels, and has collections in department stores such a Selfridges. As well as Acne Studios store fronts, having an online distributors and website it expands the brand more as there isn’t stores in every country or even most cities in the UK. Acne Studios has 53 worldwide stores. With Acne Studios being a foreign brand, they use internationalisation because it is essential to their reputation and makes a significant contribution to their overall turnover (Moore, Burt, 2007). Since internationalisation is a dynamic and fast-changing market sector; retailers enter and exit national markets at great speed for as Dawson (1993) identified, the replication of a fashion retailer’s trading format abroad is limited in terms of capital and management costs, and their single brand format lends itself to economies of replication. For Acne this is a strength and weakness because going international to foreign markets it engages with more consumer although it has a risk of reputation from other brands.

PA G E 1 1 . M A R K E T I N G M I X

Price




PA G E 1 4 . C O N S U M E R S E G M E N TAT I O N


PA G E 1 5 . C O N S U M E R S E G M E N TAT I O N Relating to Acne Studios for consumer segmentation, regarding demographics they aim towards the age of 18-35 both male and female. As the price of products is prestige, it aims to target higher incomes with an upper social class because Johansson wanted Acne Studios to be a luxury brand, which is why the fabrics chosen for products is important to the brand. The products enter the market of a newer generation, with more unique and quirky styles for fashion gurus. For geographic segmentation, Acne Studios is worldwide which means customers aren’t just located in certain countries. Having a website lets countries without stores order the products they want. However, behavioural segmentation is loyalty to brands, Acne Studios will receive loyalty from consumers because they have guaranteed quality clothing which they get their own benefits from. As for psychographic segmentation, they aim for the wealthier lifestyle consumers who can afford higher prices and who is interested and values fashion and interesting designs for clothing. Linking Acne Studios to Maslow’s Hierarchy of needs, the physiological is that we need clothing to stay warm which leads to safety and security needs which is always about keeping warm with clothing and that it is a sense of security because it covers your body which some people like to keep private and is there own. On the other hand, social needs is the love that consumers have for Acne Studios style of clothing as it can express peoples personalities and interest in fashion. With Acne Studios being a higher luxury market, so for esteem needs it means for some consumers it could be an accomplishment to purchase items from the brand and respect from upper class incomers. This links with Self-actualisation needs, which is fulfilment with a product because Acne is worth the price.


PA G E 1 6 . C O M P E T I T O R A N A LY S I S W I T H B R A N D POSITIONING MAP Looking at Acne Studios competitors I created this map with brands that are competition or have similar consumers to Acne Studios. Brands such as CĂŠline and A.P.C have the same consumers as Acne Studios which means them competing with prices and individuality. As for more high street brands, Zara seems to copy garments style from unique brands like Acne Studios with their menswear section. Although Acne studios has a higher target audience with prestige prices, they have to make sure there products are worth the price because if brands such as Zara can copy certain products and sell them at a cheaper price, its exposing Acne Studios originality and consumers can have products exactly like Acne Studios design but at a exceedingly lower price.




olitical

Acne Studios do not have any political factors within the brand however fashion in general can have an influence of political factors. Vrencoska (2009) researched on how political statements may play a part in today’s commercial fashion. According to her, an important aspect of successfully integrating politics in a fashion collection is to follow the current fashion cycle with disciplined consideration of the fall/winter and spring/summer formula. She also stated that innovation and memorability in presentation of the collections is important in order to reach recognition by potential customers. However Kahn (2000) claimed that though political statements in fashion may see a shortterm commercial success, the messages themselves will not have a social impact if they do not challenge current fashion structure and system.

S

ocial

E

nvironmental

For Acne Studios, social isn’t a massive factor they need to keep being successful, they use Instagram and twitter to post their latest campaigns and photography for their consumers. Apart from that they do not use social factors to advertise the store. In high luxury market, their target audience already know about the store so why waste money on advertisements that won’t aim to the right audience.

The environmental factor within the fashion industry has changed dynamics, such as the fading of mass production, increase in number of fashion seasons, and modified structural characteristics in the supply chain which have forced retailers to desire low cost and flexibility in design, quality, delivery and speed to market (Doyle, Moore, and Morgan 2006). However, Acne Studios use great quality and high cost to appeal to their target audience although they use an eclectic choice of fabrics, an Acne customer is likely to be part of an ethical and sustainable movement because he/she is well educated and concerned about our environment (Reinhard, 2014).

E

conomic

With many stores over the worldwide, all the Acne Studios stores are operating in countries which are either very high, high or medium disposable income. Due to Japanese consumers potentially losing their job, this can mean a fall in consumer spending in Japan stores and mean loss of income for Acne Studios. Regarding Veblen (1899) his theory of economics in fashion is the proposition that while “cheap” goes with “nasty” so to “expensive” goes with “pleasant” and “pleasing”. His frequent expression is ‘conspicuous waste’ which shows his views on conspicuous consumption in the fashion industry. To indicate the tendency to pay more than necessary for an item suitable to a need or want to indicate exceptional status and good taste to others. This is what Acne achieve, being expensive but worth it.

T

echnological

The fashion industry use a different range of technological strategies to promote and make their brand better. Acne Studios used different ways to make the individual without using loads of advertisements. Mattias Magnusson, CEO of Acne Studios, said: “Our main challenge is how to unify the online and in-store experience and service in order to gain and maintain the trust of our customers. The only way to master this is by having a nearly 100% stock accuracy. Therefore, automating our stock taking with RFID was the logical next step.” (Acne breaks out with RFID, 2017).

L

egal

Employment law, Acne Studios always has to stay on top of new employment laws, such as increasing minimal wages, as they could get in trouble if their factory workers are paid below minimum wage.Health and Safety: As Acne is producing in factories in China and Turkey (besides other countries) there could always be a health and safety accident. this is why Acne Studios is produced in low risk countries ( Italy, Lithuania and Portugal)

PA G E 1 9 . M I C R O A N D M A C R O - E C O N O M I C F A C T O R A N A LY S I S

P


PA G E 2 0 . S W O T A N A LY S I S

S trengths

Leading into internal factors for Acne Studios it’s strengths are that it has a brand image that is recognisable and is strong in big cities such as Stockholm, London and New York where the fashion industry is present. Addition to that, they are global with other countries like Australia, Belgium, China, Denmark, France, Germany, the UK and USA. Within all these stores, they each resemble Acne Studios message by individual having a distinctive style to them, none are the same (Reinhard, 2014). Another strength is the consumer base is strong because of prestige prices, their target consumers in these cities can afford all of the products due to their demographics, however with some prices being affordable also, this equals to a wider audience so higher population of consumers can afford the brand within these city locations. With expensive product it means the quality of products should be guaranteed for consumers which Acne Studios is known for its great quality fabrics as said previously. Using collaborations with artists creates interesting collections and campaigns that only Acne Studios can pull off with their individuality. For Acne Studios, creating Acne Paper had a huge impact of their success with interesting front covers and names for them, such as ‘Exoticism, Escapism and Eroticism’. Another strength is the reputation of using good quality fabrics and unique style which now consumers look for in Swedish brands that are now fast growing because of Acne Studios. The pink bags have influenced consumers to purchase products from Acne Studios because everyone wants one because they are recognisable to the brand.

T hreats

There are many threats that Acne Studios face with their crazy unique style which was mentioned in competitor analysis, that it is easy to replicate as the message is simplicity but other brands can repeat styles and sell cheaper. However brands like Céline are using similar messaging and imagery to attract the same target audience as Acne Studios. On the other hand, economic changes could happen which leads to smaller disposable income (Reinhard, 2014).

W eaknesses

Opposite to the strengths the brand has few weaknesses which starts with the name of ‘Acne Studios’ customers were confused what industry the brand was in and took a while to realise it was a clothing brand, ‘Acne’ was seen as a unattractive name and relation to the skin condition and companies such as Harrods wouldn’t stock until the brand became popular (Reinhard, 2014). As for its online appeal, the website could be easier to navigate around for new consumers and could be more appealing with colour. Although Acne Studios have a target audience of upper class consumers, could create a collection of basic clothing that is more affordable for middle/lower class earners to widen there consumer base and have a greater population. In addition to this, would be wise to have more stores in big cities in the UK which would help with advertising and promotion of the brand in the UK. However bad press from quirky/ different designs ‘Hipster sandals given the boot for looking like charity brand’ (Telegraph, 2016). Quirky designs have made the brand have to stop selling some products.

O pportunities

Acne Studios could create many opportunities for the brand to excel in the industry just by advertising the website which will help sales with countries that don’t have stores. Even having look books in store will give consumers an idea of the brands image and clothing they sell. The brand could expand its collaborations with other brands instead of mainly artist because it would bring another consumer base to take interest in Acne Studios. Acne Studios could expand the Asian market and create more promotion for the brand (Reinhard, 2014). Also could create app’s to improve online experience for customer and more e-media platforms for customers to shop on.




I THINK SOMETIMES I’M SEEN AS BORING.

-JONNY JOHANSSON, CO-FOUNDER


PA G E 2 4 . R E C O M M E N D AT I O N S To conclude my audit, I have researched all internal and external factors about Acne Studios as a brand and into the history or how Johansson made this brand successful. Throughout my research I found many interesting facts about Acne Studios and the many collaborations that are intriguing to match the brand. Looked at the brands marketing techniques and analyse how they become a high end luxury market with it’s brand equity. Finally looking at macro factors within the fashion industry and linking them to Acne Studios. It is to overview Acne Studios success in the fashion industry and how they achieved it.



PA G E 2 6 . B I B L I O G R A P H Y

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attitudes, Working Paper 736. HEC School of Management, France. Fury, A. (2015). Acne Studios: Jonny Johansson has given the company’s clothing a sense of twisted boredom. Retrieved from http://www.independent.co.uk/life-style/fashion/ features/acne-studios-jonny-johansson-has-giventhe-companys-clothing-asense-of-twisted- boredom-10117292.html

Arvidsson, M., & Agné, R. Harilela, D. (2014) Fash(2011). Branding by doing-A ion brand Acne continues study in refraining from traits growth with Hong Kong ditional marketing. Retrieved store. Retrieved from http:// from https://gupea.ub.gu.se/ www.scmp.com/lifestyle/fashbitstream/2077/25620/1/ ion-watches/article/1613796/ gupea_2077_25620_1.pdf fashion-brand-acne- continues-its-growth-hongBodhi Branding Development. kong-store Acne Studios introduction. Retrieved from https:// Hine, T., Bruce, M. Fashion laurenjuddbranding.wordpress. Marketing (2007). Moore, com/portfolio/acne-studios-in- C. M, Burt, S. Developing a troduction/ research agenda for the internationalization of fashion Cochrane, L. (2013) Acne: 10 retailing, page 90 - 104 things you should know about the hot fashion brand. ReJohnson, N. (2016) Acne Studitrieved from https://www.theos Founder Jonny Johansson Is guardian.com/fashion/2013/ Not Down With Our Celebrity jun/25/acne-10-things-fashFashion Obsession. Retrieved ion-brand from https://www.gq.com/story/acne-studios-designer-jonDawson, J. (1993). The interny- johansson-interview nationalization of retailing. In Bromley, R. D. F. and Thomas, Jonny Johansson Biography. C. J. (Eds.), Retail Change. Retrieved from https://www. Contemporary Issues. London: businessoffashion.com/comUCL Press, page. 15–40. munity/people/jonny-johansson Dubois, B., Laurent, G. and Czellar, S. (2001). Consumer Jumah, K. (2016) Acne Studios rapport to luxury: analysing announces new campaign with complex and ambivalent David Sims. Retrieved from

http:// www.gentlemansdivision.com/acne-studios-announces-new-campaign-david-sims/ Khan, N. (2000). Catwalk Politics. In S. Bruzzi & P. C. Gibson (eds.) Fashion Cultures: Theories, Explorations & Analysis. London: Routledge, page 114127. Knas, M. (2014) Acne Studios X Viviane Sassen still lifes. Retrieved from http:// www.idolmag.co.uk/fashion/ acne-studios-x-viviane-sassen-still-lifes/ Kotler, P. (2012). Marketing Management, 14. MrPorter. (2011). The Intro: Acne. Retrieved from: https://www.mrporter. com/journal/journal_issue41/2#top Reinhard, C. (2014). Brand Analysis Acne. Retrieved from https://issuu.com/carlareinhard/docs/ research_journal Small, K. (2016). Acne Studios collaberate with David Sims on new campaign. Retrieved from http://www.theglassmagazine. com/acne-studios-collaborate-with-david-sims-on-new- campaign/ The Evolution of ACNE studios (2015). Retrieved from https:// www.somethingaboutmagazine.com/evolution-acne-studios/ (image of pink boxes)


Veblen, Thorstein (1899), The theory of the leisure class. New York: Penguin. (page 169)

Vrencoska, G. (2009). Political Statements in Conceptual Fashion: The Voice of National Sentiments as a Self-reference in the ready-to-wear Collections of Alexander McQueen and Hussein Chalayan. http:// www.eurm.edu.mk/kadar/gordana-vrencoska/Political_statements_- _Vrencoska_2.pdf [2016-05-01]

Wilson, E. (2009). Stockholm Label Acne Wants to Be Known for More Than Jeans. Retrieved from http://www. nytimes.com/2009/10/15/fashion/15ACNE.html?pagewanted=all Yotka, S. (2016) Acne Studios Unveils an Arty Collab with Jack Pierson. Retrieved from https:// www.vogue.com/article/acne-studios-jack-pierson-collaboration

IMAGES Acne Paper. (2017). Past Issues. Retrieved from:Â http://www. acnepaper.com/pastissues/ https://i.pinimg.com/736x/ ce/e8/d0/cee8d0fd5a4444b59372881c20e3624c--fashion-graphic-fashion-street-styles.jpg https://dtpmhvbsmffsz.cloudfront.net/ posts/2017/05/17/591ce4b268027878c3007f93/m_591ce4b268027878c3007f94.jpg Bidouzo-Coudray, J. (2011) http://www.blendbureaux.com/ acne-studios-x-daniel-silver/ https://www.nytimes. com/2017/02/21/ fashion/acne-studios-scandina

http://media.pinterest.com. s3.amazonaws.com/550x/ b5/ab/fb/b5abfb6c8e384b0de3ee69d19dad2ba8.jpg http://www.acnepaper.com https://i.pinimg. com/736x/15/0f/e1/150fe1650c92af3183293c409dfd63d1--old-boys-acne-studios. jpg https://i2.wp.com/theimpression.com/wp-content/uploads/ Acne-Studios-bla-konst-denim-ad-campaign-the-impression-04.jpg

https://hypb.imgix.net/ image/2014/08/acnefounder-jonny-johannsentalks-about-denim-1. jpg?q=75&w=800&fit=max&auto=compress%2Cformat vian-minimalism-design-critical-shopper.html https://www.pinterest.co.kr/ pin/265149496787933230/?autologin=true http://www.idolmag.co.uk/ fashion/acne-studios-x-viviane-sassen-still-lifes/

http://www.10magazine.com/ http://www.nawo.com/wp-con- news/acne-studios-ss15-camtent/uploads/2016/09/Acpaign-there-are-a-lot-of/ ne-Studios-Milli-Wool-Trousers.jpg Acne_Studios_Blae_Konst_ Hires_1.jpg

PA G E 2 7 . B I B L I O G R A P H Y

The Telegraph. (2016). Nordic chic: 8 Scandi brands you need to know. Retrieved from:Â http://www.telegraph. co.uk/fashion/brands/nordicchic-8-scandi-brands-youneed-to-know/.



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