Leyla Osmanovic
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Contents Page 3
Executive Summary
Page 5
Introduction
Page 6
Brand Identity
Page 8
Brand Consumers & Brand Positioning
Page 9
Communications Mix - Advertising
Page 12
Public Relations & Personal Selling
Page 13
Sales Promotion & Direct Marketing
Page 14
Social Media
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Bibliography
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Executive Summary This report contains information for readers to inform them of Fendi and what it represents as a brand. It contains important key facts on Fendi’s past and present, informing readers on what products and services it produces. This report will allow readers to find out who is Fendi’s audience and what its typical consumer is. Additional information on competitors is available also explaining how quick comparisons between brands are made and why they are popular including what entices consumers to shop where they shop. Furthermore, Fendi’s unique selling point and emotional selling point is also included. This report allows readers to decide for themselves if the brand does have real competitors or if what Fendi offers is so unique, that it does not when
comparing its unique selling points against other similar brands. This includes how well Fendi have done, as well as how they communicate and promote their brand to their customers.
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Introduction Fendi is synonymous with luxury. The quality that Fendi provides is excellent. All of its fabulous furs and lavish leather handbags are evidence that Fendi is extravagant. Fendi is a profound brand and consumers buy it for a glorified taste both to wear and to be seen wearing. Fendi is based in Rome, Italy and has over 210 boutiques in over 35 countries worldwide. (SOPHIE DE ROSÉE. OCTOBER 19, 2013. 210 boutiques in over 35 countries worldwide). LVMH (Moet Hennessey Louis Vuitton) hold the biggest share in Fendi. Fendi sells clothes and accessories for men, women and children. (2013, LVMH) The revenue of the brand is “€1 billion”, (Dec 15, 2015, Fendi’s revenue is at €1 billion). Which suggests that the brands performance is exceptional. Adele Casagrande opened the Fendi store in 1918 as leather and fur store in Via Del Plebiscito in Central Rome. This was the first accessories store to sell leather and fur goods in this region. In 1925 Adele got married to Edoardo Fendi and decided to change the name of her store to Fendi. This is how the house of Fendi was established. The quality and craftsmanship that Fendi produced with its products is what the design house was recognised for. Fendi started to become popular in the 1930s, its popularity increased further during the 1940’s because Fendi became popular outside of Rome, Italy. “It is said that to Romans, a trip to Fendi was a date with a certain distinction” (ASHLEY SEN-
FT. FEBRUARY 24, 2011. History of Fendi). By 1946 Edoardo and Adele’s five daughters, each of which would work for the family business turnyears The
upon ing 15 of age. five
Karl Lagerfeld created the double “F” logo during the 1960s. Karl Lagerfeld continues to hold the same position at Fendi today as artistic director from 1965. It is “the longest collaboration between a fashion house and a designer in history”. (N.D. Business of Fashion Silvia Venturini Fendi). Silvia Venturini Fendi being the granddaughter of Adele and Edoardo Fendi is the creative director of accessories and menswear. (January 8, 2009, The History of Fendi x Timeline). This information has been gathered from a mixture of primary and secondary research. The primary research that was undertaken was by taking pictures and talking to staff members who work for the Fendi brand. The secondary research was carried out from a mixture of books, blogs, articles and video clips.
sisters recognised a rising German designer by the name Karl Lagerfeld. For Fendi it meant that they were ahead of the game by having Karl Lagerfeld come in during the 1960s to incorporate his own ideas any experiment successfully with new ways to dye fur. (Miles Socha, July 8, 2015, Karl Lagerfeld on Fur, Fendi and Couture). Fendi gained more customers because of the effect Karl Lagerfeld has and competitors couldn’t keep up.
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Brand Identity Brand identity is “various elements of a brand that are made to appear externally…logo/symbol, product/ service, packaging, slogan or physical environment”. (Doyle, 2011, Page 48). Fendi’s logo is the double “F” they sells luxury items from clothes to accessories for men, women and children. “A receiver who perceives a source is lacking conviction, authority, trust or expertise is likely to discount any message received from that source”, (Fill, 2006,page 31). “The design of packages and wrappers is important, as continuity of design in combination with the power to attract and hold the attention of prospective buyers is a vital part of point-of-purchase activity”, (Fill, 2006,page 206). When consumers see the double “F” logo it signifies quality and rich attributes. Fendi’s packaging is a yellow bag and black bold text. The colour yellow signifies richness and the colour black sophistication, which matches the customers they receive. Due to Fendi being a luxury brand it means that their prices are relatively high. Something as simple as a handbag costs over £6,000. “Customer satisfaction is largely dependent upon consumer value”, (Hines & Bruce, 2007, page 208). The ambience that is created within its stores is very high maintenance. In a typical Fendi store customers are greeted and treated with the upmost respect, all staff members wear white gloves, and it’s very spacious. For example, all staff wears white gloves.
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That signifies that all items are handled with extreme care. The products that are sold include everything from clothes to accessories for men, women and children.
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Brand Consumers Consumer is “the end user of a product/service”. (Doyle, 2011,Page 106) “The purchase is intended to be used by others for company usage, whereas products bought in a consumer content are normally intended for personal consumption”, (Fill, 2006,Page 24). The end user of Fendi’s products is men and women who earn over £30,000 a year. The brand offers a range of clothing for men, women
and children. This means that Fendi’s regular customer need to have a high earning career otherwise shopping at Fendi is not possible. Fendi is a brand that offers luxury to those who request it, often consumers who do earn around that salary like to shop for luxury. When thinking of a Fendi customer, a person leaving their private jet draped in a Fendi fur jacket, leather bag and sunglasses is pictured.
Positioning is “ensuring that a product, brand, or service finds a place and visibility in the most desirable niche and/or display arena within the market”. (Wolbers, 2009, Page 124). Fendi’s products are visible on the market because the brand is unique and appear to only high-end customers. What Fendi has is unique due to the positive impact that Karl Lagerfeld has whilst working with the brand (Solomon & Rabolt 2009, page 250). CompetitorsChanel is famous for the little black dress and the No.5 Chanel perfume.
Bottega was established by the method of weaving used for their leather bags. Although Chanel and Bottega are both luxury brands and are Fendi’s competitors, the brands competitors does not pose a threat because they may offer similar items, but its customers will remain due to the small differences makes each brand offer that is unique. This means that although Chanel and Bottega are Fendi’s competitors, it does not look as if it is something to be concerned with as it wont affect Fendi’s sales. Due to the fact that it is not dampening on
Brand Positioning
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the sales Fendi makes with its leather handbags and fur. It does not look as if Fendi has an actual competitor when looking at it from this angle. Fendi’s USP (unique selling point) is its leather handbags and fur. Due to the fact that the fur is dyed using a great method that continues to make the item look lavish and the leather handbags sell without fail. “When an emotional approach is
used, advertising should provide emotional selling points (EPSs). These can enable consumers to make positive brand associations based on both physiological and socially acceptable meanings, a psychological interpretation”, (Fill, 2006, Page 22) Fendi’s ESP (emotional selling point) is that its customers strive for luxury
and where better to purchase that than the brand that was established for its luxury furs and leather bags. In addition to this consumers choose to shop at Fendi because; on trend items, customer service is exceptional, not pressured to purchase and the customers feels valued.
Communications Mix
Advertising
Advertising is “the promotion of ideas, goods or services, or any combination of these”. (Doyle, 2011, Page 6). Fendi have used the following advertising strategies; TV commercials, billboards, social media, magazines, fashion shows, online pop-ups, wordof-mouth, newspapers, articles/bogs, celebrity endorsement and charity events and more. “Customers use word-of-mouth recommendations to provide information and to support and reinforce their purchasing decisions”, (Fill, 2006, Page 42). Fendi is starred in some of the follow-
ing magazines: Vogue, Grazia, Glamour, Elle and more. During fashion shows Fendi’s ideas and creations are revealed. In newspapers Fendi appears when they do something groundbreaking. For example, Great Wall of China fashion show, or the celebration of the 90th anniversary. (Miles Socha, Dec 2007. Great Wall of China). An example of a charity event that Fendi hosted was to get 5 celebrities including Rihanna, to create a Fendi Baguette bag, it was put on sale to the public and the money raised was given to the charities’ of the celebrities choices. (Luisa Zargani,
January 16, 2015, Celebs Design Fendi Bags for Charity).
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Public Relations Public relations is “relating an organization to the public”. (Doyle, 2011,Page 318). “The increasing use of public relations, and in particular publicity, is a reflection of the high credibility attached to this form of communication”, (Fill, 2006, Page 17). “The use of public relations on the Internet, and extranets in particular, is claimed by many as a viable and active part of the promotional mix”, (Fill, 2006, Page 159).
“Once market needs have been identified and interpreted, response can be given to these defined consumer demands”, (Hines & Bruce, 2007, Page 146). Fendi has identified what customers’ want and has found methods to give them exactly that. For example, Fendi has a My Baguette App, which allows customers to design their own baguette handbag. Fendi also offers a service where the customer can go in-store to design their own handbag,
and then Fendi produces it for their customers from scratch. Celebrity endorsement is another strategy used to relate to the audience, audience love to own a replica of something that a celebrity owns.
“A two-way, interactive form of selling which is usually conducted face to face”. (Doyle, 2011, page 294). B2C (business to consumer), Fendi’s customers shop at Fendi because they want luxury and that’s what they receive. B2B (business to business), Fendi sells its products to department’s stores such as Selfridges to be sold within concessions. “In consumer markets a single person
very often makes the decision. In organizational markets decisions are made by many people within the buying centre”, (Fill, 2006, Page 24). “The role of advertising and sales promotions in business –to-business communications in primarily to support the personal selling effort”, (Fill, 2006, Page 24). “Personal selling is traditionally per-
ceived as an interpersonal communication tool that involves face-to-face activities undertaken by individuals, often representing an organization, in order to inform, persuade or remind an individual or group to take appropriate action”, (Fill, 2006,Page 16).
Personal Selling
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Sales Promotion Sales promotion is “A direct inducement to buy, either by offering added value or direct incentive”. (Doyle, 2011, page 336). “The most common promotional objectives set by managers are sales related. These include increases in market share, return on investment, sales-volume increases and improvements in the value of sales made after accounting for the rate of inflation”, (Fill, 2006,Page 128). Fendi does not have sales. Howev-
er Fendi hosts a private sale event, which “invites their most loyal customers. The brand holds private family sale events and semi-annual warehouse sale events”. (Glaiza Valiente, February 20, 2014. Does Fendi ever go on sale?). The events are by invitation only, meaning that Fendi does not offer the public any sales. However, this does not mean that there aren’t any methods for the majority of the public to get hold of a sale. In order to find a Fendi product
at a discounted rate, it would most likely be from a department store such as Selfridges. Staff receives a discount on Fendi’s merchandise.
“It is an aspect of total marketing that is characterized by measurability and accountability, with heavy reliance on lists and data and uses several types of media”. (Doyle, 2011, Page 145). “Direct marketing seeks to target individual customers with the intention of delivering personalised messages and building a relationship with them based upon their responses to the direct communications”, (Fill, 2006,page 18).
“Email can be used with high levels of frequency, which is important when building awareness”, (Fill, 2006, Page 156). The brand emails customers on a regular basis because it is important for customers to be updated with knowledge of the brand. Emails, mailshots, newsletters, direct response advertising through TV, magazines, newspapers, (anything a customer can watch, hear or read that they have to initiate a phone call to
make a purchase). Fendi constantly uses all aspects of direct marketing to associate with consumers due to the fact that the more engagements occurs the increase of chance exist that the customer will make a purchase. “Direct marketing, allows fashion businesses to create relationships with their customers”, (Swanson & Everett, 2016, page 262). Hence why the brand has strong relationships with its customers.
Direct Marketing
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Social Media “However, it has been determined that the Internet can impact upon sales performance indirectly through sales-management activities�, (Fill, 2006, Page160). Fendi uses the following social media sites: Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify and Google Plus. Fendi uses social media because it is the quickest and most efficient way to target customers, update them and get the brand noticed by a wider audience.
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http://www.dailymail.co.uk/tvshowbiz/ article-3680601/Kendall-Jenner-looksstunning-striped-shoulder-gown-attendsFendi-s-90th-anniversary-dinner-hitting-runwayRome-s-Trevi-fountain.html http://vectorlogo4u.com/fendi-logo-vector/ https://static.www.fendi.com/mediaObject/fendi/ woman/fur-donna-galley/3/original/3.jpg https://static.www.fendi.com/mediaObject/fendi/ woman/fur-donna-galley/26/original/26.jpg https://static.www.fendi.com/mediaObject/fendi/ Fendi-Roma/Fendi-Roma-galleries/fur-atelier/
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Leyla Osmanovic
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