For Men
Illustrated Marketing Report
Marie Lewis.1206097. EFMM6003. Major Project & Career Planning.
Cont e nt s
Executive Summary
6
Introduction
7
1. The Proposal 1.1 Company Overview 1.2 Product and Service 1.3 USP 1.4 Ansoff Matrix
8 9 12 14 15
2. The Marketing Mix 2.1 People 2.1.1 Demographics 2.1.2 Spending Power 2.1.3 Marketing Typologies
16 16 28 24 26
2.2 Product 2.2.1 Product Overview 2.2.2 CAD Range Plan 2.2.3 Sourcing Strategy 2.2.4 Sustainability/ Ethical manufacturing policy
28 29 34 38 40
2.3 Price 2.3.1 Pricing Policy 2.3.2 Price Band charts
42 43 46
2.4 Place 2.4.1 Distribution Strategy 2.4.2 Omni- Channel retailing options
48 49 51
2.5 Position 2.5.1 Price Style Matrix 2.5.2 Competitor Evaluation
54 55 55
2.6 Promotion 2.6.1 Branding 2.6.2 Experimental Retailing 2.6.3 Integrated Marketing Strategy
56 58 62 66
2.7 Persuasion
84
3. Launch Marketing Business Plan 3.1 Launch Marketing costs 3.2 Estimated retail sales, stock investment costs & intake margin 3.3 Capital Investment Required 3.4 Projected profit/ loss
86 87 88 90 92
4. SWOT Analysis
94
5. Conclusion
96
Appendices
98
Bibliography
106
Execut ive Summ a ry Céline is a luxury, powerful brand providing ready to wear clothing and leather goods for women. By expanding to menswear it will offer a new customer base and widen Célines brands portfolio. The products will consist of oversized tailoring and sharp silhouettes, keeping it cool and minimal. “The rising number of men aged 25-34 bodes well for the menswear market as these young men show a growing interest in buying clothes that reflect the latest fashion. The number of men in this age category has grown by 13.4% between 2009 and 2014, and the number of men aged above 55 years will increase by 10.2% by 2019.” (Mintel, Menswear 2015) Primary research suggests that men buy from luxury brands mainly because of the quality, design and exclusivity of the product. ‘High quality lasts longer & is cheaper in the long run.’ (Céline, luxury menswear questionnaire, Anonymous,2014) Another key point to highlight is that 70% of males said that the promotion of a luxury brand influences their buying habits. (Céline, luxury menswear questionnaire, Anonymous,2014.) By creating social media platforms it will keep the exclusivity of the brand. The platforms will engage with the desired customers more and be able to have an experience online as well as offline. To broaden their customer base, Céline will improve their marketing activity through unique social and brand awareness techniques to raise awareness.
6
Int rod u c t i o n The market report was created to analyse the luxury menswear market that offers a gap within the industry, to produce a menswear range including ready to wear and leather goods for the Paris fashion brand CÊline. Brand presence needs to be established because some consumers are unaware of the brand. Primary research will be carried out throughout the project to produce first hand feedback of what consumer’s think, and to carry out information of the overall market. This will be collected by questionnaires and interviews with the target market and managers of the stores. Secondary research is very important to support the research found. Limitations: Arranging a focus group was quite challenging, once the respondents came together people tended to go off topic and this lead the market research being irrelevant. Some information for marketing costs were quite difficult to get, leading to guesstimating some of the costs.
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1. The propos a l
Company O v e r v i e w Céline sells women’s luxury fashion and leather goods and was founded in 1945. ‘In October 2009, Phoebe Philo (creative director) presents her first Céline catwalk show for Spring/Summer 2010 in Paris.’ (LVMH Group 2014) ‘The collection encapsulates the spirit of Céline: functional clothes with a particular
focus on materials and subtle tailoring.’ (LVMH Group 2014) ‘Céline style gets straight to the heart of the matter with a timeless collection of strong basics and elegant, modern lines.’ (LVMH Group 2014) ‘The new era of Céline is now driven by the principles of Phoebe Philo. She perpetuates a sense of subtle luxury which originated with Céline Vipiana, the label’s founder, and continues today in the fine materials and quality workmanship.’ (LVMH, Group 2014) ‘Acquired by luxury conglomerate LVMH in 1996, being a part of LVMH has been hugely influential. Céline’s revenues are said to have doubled in the last three years, surpassing £400
million for 2012, Milano Finanza Fashion reported in early February.’ (Business of Fashion, Anaya, Suleman, 2013)
9
Womens luxury ready to wear products including shoes, jewellery, sunglasses and leather accessories.
10
11
Ne w Produ c t a nd S e r v ice
The Proposal is introducing a new menswear line for the luxury fashion brand, Céline. The launch will also be joined with a new marketing strategy to promote and enhance the brand’s awareness, including a new social media network to promote the menswear launch. Social media needs to be linked into Céline’s branding strategy to make it unique and aspiring to customers, but to keep it within the brands guidelines.
12
13
USP
CĂŠline for Men clothing focuses on quality and design. The leather goods are special to the brand, the designs are modern and clean cut. Producing high quality and unconventional fashion, which will stand out from other competitors. The craftsmanship that goes into every detail of a product is truly incredible. The target market for CĂŠline For Men is 2560 year old mature males working within a good financial background, he has a good eye for art and loves to take luxury holidays away.
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A n so ff Mat ri x
New Markets
Existing Market s
Existing Products
New Products
Market Penetration Product Development
Market Development
Diversification
CĂŠline for Men will be marketing a new product range into a new market, it will be going into a market where there is no existing products for men. This will broaden their customer base within luxury menswear.
15
2. Th e Ma r ke t i ng M i x
16
17
P eo p le Emerging Luxury Millennials ‘They have a carefree attitude to spending, and have sophisticated tastes and an appetite for established classic luxury brands. The spending power is driven by sophisticated, pampered consumers born between 1980 and 1989. From LS:N Global, this young tribe want a cultural social hub as well as a retail experience. For these consumers, fast meets slow, art meets commerce and online meets offline. For the Emerging Luxury Millennials there is no difference between online and offline. Travelling: This tribe love plenty of activity on city breaks, choosing lively destinations such as London, Paris, and Hong Kong known for their culture and amazing shopping.’ (LS:N Global, 2012) The Emerging Luxury Millennials love to travel the world to luxury destinations when they have time from their hectic lifestyle. They like to keep healthy and attend the gym three times a week. Having an easy, stress free shopping experience is key for the NLM’s.
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NEW LUXURY MILLENNIALS ‘The NLMs will define the next wave of luxury spending. They are much more likely to have made a luxury purchase in the past year than older luxury consumers. The NLMs keep in touch with each other, and with brands, digitally and using location-enabled apps. Fashion: The tribe are usually interested in classic, cuttingedge and modern fashion. They shop in Louis Vuitton, Burberry and high street brands such as Zara and COS. Hospitality: The NLMs prefer to socialise in heritage, luxury bars and restaurants where it’s quiet rather than a loud and busy location. When they cook at home they like to buy organic foods from high end supermarkets. (LS:N Global, 2011)
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The Artistic Modern man.
Kevin is 60, his occupation is a Dentist and is living in Cambridge with his wife and two children who are studying at university. Kevin is very interested in art and music, his wife collects pieces of unique art - artists known as Annica Sandstrom, who produces beautiful hand made contemporary tableware, plates, vessels and glass. Whenever he has a spare moment to himself he likes to play the guitar and banjo, he also takes guitar lessons. Fashion: Favourite fashion brands to shop: Margaret Howell, Paul Smith, Maison Martin Margiela, Raf Simons and Acne. “I don’t think Céline is as well known as it could be but it works for it’s customers, if they could incorporate social media within the launch it would work perfectly”. (Kevin, 2015) “I would definitely buy into Céline for men, my wife buys the womens clothing for herself, the inspiration from Céline is from menswear”. (Kevin, 2015)
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Classic Chic
Jefferson is 35 ,he is originally from the Philippines but moved to London 10 years ago to follow his dreams in fashion. Jefferson already buys into the brand Céine, he loves the collection and writes on his blog daily about the new collection. “It would be so exciting if Céline launched menswear, it would be timeless and elegant”. (Jefferson, 2015) Fashion: Favourite fashion brands to shop: Céline, Maison Martin Margiela,COS and Dries Van Noten. ‘Célines clothes speak for themselves, men would be willing to buy into the quality of the clothing, they use the best fabrics in the world, the product would last, it’s worth every penny’. (Jefferson, 2015) ‘Creating social media platforms before the menswear launch would spread the word quicker, luxury brands are starting to have an online experience as well as having one in store. ‘ (Jefferson, 2015)
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Capturing the CĂŠline man on camera during London Fashion Week.
Jun 27
22
Sachin 26
Matthew 23 AndrĂŠ 24
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D emogra phics ‘Men aged 25-44 also show above-average interest in buying clothes that reflect the latest fashion.’ (Mintel Menswear, market size and forecast 2015) (Refer to appendix 2 for age trends) Age of Céline male consumer?
‘Aged between 25-45- high income’ (Hayden, Mount Street Céline store manager, 2015) ‘It would be perfect if Céline started leather goods for men, they are known for their luxury bags. I wasn’t fully aware they had a ready to wear collection, it would be beneficial if they advertised it more. By looking at the womenswear range I can really see it reflecting into menswear’ (Christian, 26, 2015)
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S pe ndi ng powe r 4.5%
‘Sales of luxury fashion and leather goods increased to €57 billion in 2013, ahead of the 3.6% growth in the total luxury goods market.’ Refer to appendix 3. (Mintel, Luxury good retailing 2014)
41% of men
‘Around said they preferred to buy fewer, designer items, rather than lots of cheaper goods. In comparison, just 34 per cent of women adopted this approach.’ (Hull, Liz. Daily Mail, 2014)
‘Men in the 25-34 age group have become the main clothes
94%
shoppers, with having purchased garments in the last 12 months, the highest rate of all age groups.’ (Mintel, 2014b) “Consumers looking for luxury products take longer to convert, engaging in many more interactions before converting.” (Luxury Society, 2011)
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Market in g t y pol ogi e s Buying Attitude
The Artistic Modern Man: Emotional buyers. “I like to buy into a product that lasts me a long time, it’s all about the quality of the product” (Kevin, 2015)
Emerging Luxury Millennials:” I like to look good and feel good in designer clothing”. (Alessandro, 2015)
New Luxury Millennials. Impulse buyer “I’m into my traditional classic brands who value their customers, I do tend to impulse buy when I’m in my favourite shops” (Matthew, 2015)
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P s ychogra ph ic Gra ph
New Luxury Millennials.
Emerging Luxury Millennials:
16%
Laggers
34%
Late Majority
34%
Early Majority
Early Adopters
13.5%
Innovators
2.5%
The Artistic Modern Man:
Classic Chic The New Luxury Millennials and Emerging Luxury Millennials are placed between the innovators and early adapters because of their financial income and high social status in order to fit into their luxury lifestyle they have. If a new product or service is being produced they are usually the first ones to have it. The artistic modern man on the other hand likes to buy into new products, but tends to research the brand first before purchasing an item, he usually sticks with the loyal luxury classic brands. They usually adopt new trends so they remain current in fashion. The classic chic consumer is an impulse buyer, they are always purchasing new items when they come into season.
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2.2 Prod u c t
Aut um n/ Wi nt e r 16 / 17 Design
Minimalist aesthetic, clean cut designs “My relationship with fashion is playful, and very expressive of what I’m feeling at the time.” Creative director, Phoebe Philo told Vogue. (Business of Fashion 2014) Creating an artistic twist to the clothing to make their products unique and keeping within the brand ethos.
Material
Céline will be using soft fluid fabrics, quilted leathers, textured wools, crisp cottons and nylons to give a more structured and contemporary look to the collection.
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I n spirat ion
Relaxed slouched trousers. Soft fluid fabrics. Relaxed fit. Trench coats.
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Turtle neck knitwear. Padded construction knits. Robust wools.
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A/W 16/ 17 F or e c a s t: M at e ria l s a n d T e x tu r e s
Raw textures. Minimal. Crackled. Soft-sheen leather. Matte polish leather.
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Freezing fog. Quilted leathers. Tough fabrics. Construction.
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C AD Ra n ge Pl an
CÉLINE CÉLINE
Category: Coat Description: Soft camel wool coat with fur trim Material: 50% Wool, 40% Cotton,10% sheepskin fur Colour: Camel, Black, Light Grey Size: XS, S, M, L, XL Made In Italy Price: £3,000 Margin: 73.23%
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Category: Knitwear Description: Structured jersey crackled effect turtle neck jumper Material: 88% Cotton, 12% Polyamide Colour: Black Size: XS, S, M, L, XL Made In Italy Price: £777 Margin: 70.01%
CAD Range: Refer to appendix 1
CÉLINE
CÉLINE
Category: Trousers Description: Wool loose fitting trousers Material: 85% Wool, 15% Mohair Colour: Dark Grey Style: Slim fit, that tapers towards the ankle Size Waist: 28, 30, 32, 34, 36, 40, 42 Made In Italy Price: £760 Margin: 70.39%
Category: Accessories: Bags Description: Lambskin bag with removable shoulder straps Material: Soft crafted 100% Lambs skin Colour: Black and white Size : One size Made In Italy Price: £885 Margin: 72.32%
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CÉLINE
Category: Coat Description: Blue Tweed trench coat Material: 75% Virgin Wool, 25% Polyamide Colour: Electric blue Size: XS, S, M, L, XL Made In Italy Price: £1,200 Margin: 72.25%
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CÉLINE
Category: Knitwear Description: Jersey leather lizard pattern sweatshirt Material: 75% Leather & 25% Jersey Colour: Olive green and black Size: XS, S, M, L, XL Made In Italy Price: £950 Margin: 70.53%
CÉLINE
CÉLINE
Category: Trousers Description: Wool loose fitting trousers Material: 85% Wool, 15% Mohair Colour: Black Size Waist: 28, 30, 32, 34, 36, 40, 42 Made In Italy Price: £760 Margin: 70.39%
Category: Accessories: Bags Description: Calfskin leather tote bag Colour: Burgundy Size: Large Made In Italy Price: £1,995 Margin: 72.18%
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S o urcin g S t rat e gy Sourcing
Processing
Manufacturing Célines products are sourced from Italy, LVMH have now taken over Loro Piana which ‘creates luxury fabrics and products, the main fabric is cashmere. The brand is famous for its dedication to quality and the noblest raw materials, its unrivalled standards in design and its expert craftsmanship.’ (LVMH 2014) According to LVMH, Loro Piana started trading wool and luxury textiles in the 19th century, the business was established in Quarona Sesia, Italy. Célines fabrics and textiles are sourced from Florence, Italy to produce the beautiful garments.
Transport
Dispatch to stores
Retail
To consumer 38
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SUSTAINA B ILITY ETHI C AL M ANUFACTU R I NG
40
‘When transporting goods at LVMH, a ship produces
80 times less CO2 than a plane.
LVMH group has a guide to an environmental audit before the purchase or sale of a site for its companies, each of their companies are responsible for the land that it acquires.
The quality of the natural, agricultural and urban landscapes is important for LVMH group. LVMH’s sites
are carefully designed to seamlessly blend into their environment.
LVMH group uses recycled materials to package its products.’ (LVMH Group 2015) ‘Eco-design involves reducing packaging weight and volume, choosing specific components and raw materials, buying more energy-efficient production processes.’ (LVMH, environment report 2013)
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2. 3 Pric e
Pricing Arc hi t e c t ur e The pricing strategy for Céline’s menswear will be priced high to reflect exclusiveness and desirability for the range. The product will be distinctive from other competitors, so consumers are willing to buy into the product. From primary research, 50 respondents who shop at high end luxury brands were asked how much they would spend on a high quality coat 65% said between £1,000 -£3,000. (Anonymous, Céline pricing questionnaire, 2015)
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Entry
Coats/ Jackets £3,000 - £855
Leather Accessories £1,995 - £310
Knitwear £950 - £650
Shirts £986 - £560
Trousers £810 - £760
Tops £395 - £475
Exit 44
CÉLINE
CÉLINE
CÉLI NE
CÉLINE
CÉLINE CÉLINE
CÉLINE CÉLINE
CÉLINE
CÉLINE
CÉLINE
CÉLINE
45
CÉLI NE PARIS
Bags
CÉLINE
CÉLINE
£310
Trousers
£810
£760 CÉLINE
CÉLINE
Tops
£395
£475
Shirts
£500 CÉLINE
CÉLINE
Knitwear
£950
£650 CÉLINE
Outerwear
£855 £500
£300 Entry price
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Exit price
£1,000
CÉL INE
£1,955
CÉLINE
£986
CÉLINE
£3,000 £1,500
£2,000
£3,000
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2.4 P l ac e
Di s t rib ut i on s t r at e gy The collection will be kept exclusive to Céline’s customers. It will firstly be introduced in the main cities where Céline is already popular, these are their flagship stores in London, Paris and New York. It will also be distributed in luxury department stores: in Manchester, London and New York. Initial allocation: Allocating in 10 stores and department stores: Paris, London, New York, Miami, Harrods, Dover Street Market, Selfridges both London and Manchester, Barneys and Neimus Marcus.
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C u rrent S t ockLis t s
America Atlanta Beverly Hills Boston Chicago Guam Honolulu Las Vegas Miami New York Saks Neiman Marcus Barneys Bergdorf Goodman
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Europe Azerbaijan France- Paris Greece Ireland Italy Principalty Of Monaco Germany Russia Switzerland Spain Turkey United Kingdom- London Selfridges Harrods Dover Street Market Ukraine
Asia Pacific Australia Parlour X David Jones Marais China Hong Kong Sogo Indonesia Japan Korea Lotte Macao Malaysia Philippines Singapore Taiwan Thailand
Middle East Bahrain Kuwait Lebanon Qatar Saudi Arabia United Arab Emirates
Top Stores Mid Stores Concessions
Om n i- cha n nel R e ta i l i ng F l ag s h i p S t o r e s
The full AW mens collection will be stocked in CÊline’s Flagship stores in London, Mount Street and Paris, Montaigne. It will then be distributed in countries where the collection is performing extremely well.
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Co nc e s s i o n s
When Céline’s menswear collection is launched, it will be stocked in Harrods, Selfridges and Dover Street Market where there is already a concession for womenswear. In America the collection will be distributed in Barneys and Neiman Marcus. Being stocked in a concession will boost the brands awareness because of the variety of different customers and tourists who visit. From Primary research men in London aged 25-35 prefer to shop in concession’s, because their favourite designers are under one roof. (Luxury shopping questionnaire, 2015)
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E - co mme rc e AU T U M N / W I N T ER 1 6 / 1 7 SHOW C AM PAI G N I NSPI R ATI O N R E ADY T O W EA R : WOM E N S M E NS HAND BA G S SHOE S LE AT HE R A C C ES S O R I ES SU NGLAS S ES JE WE LLE R Y C É LI NE ST ORE S
SHARE
The products will be shown onto Céline’s website but customers can’t make a purchase, so Céline is kept exclusive. Shoppers can experience the Céline product in-store. The website will be working on mobile, tablet and laptop. AUTU MN/ W INTER 16/17 SHOW CAMPAIGN INSPIRATION READ Y TO WEAR: WOMENS MENS HANDBA GS SHOES LEATHER ACC ESSORIES SU N GLASSES JEWELLERY CÉLIN E STORES
SHARE
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2.5 P os i t i on
Price S t y le Mat ri x
High Price
For Men YOUR INVITATION TO AN EXCLUSIVE MENSWEAR LAUNCH 2016 CELINE.COM
103 MOUNT STREET LONDON W1K 2AP
Fashion
Classic
Low Price
The graph shows the main competitors for Céline which are Phillip Lim, Neil Barrett, Maison Martin Margiela and Balenciaga. The reason for this is the type of consumer who shops at these brands, pricing of products and branding. It shows the positioning of where Céline sits in the luxury menswear market. It’s given factors of how other luxury brands are generating sales, running a successful clothing brand and how they interact with their customers online and offline.
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2.6 Prom o t i on
DNA Py ra mid
Who is Céline’s Consumer?
Consumer’s values
Customer feelings towards Céline?
What Céline gives the customer? What key ideas go into the brand?
Céline’s USP?
Luxurious Mature Artistic Fashionable
Personality
High Quality Structure Purity Unique Desirable Chic Confident Irresistible
Values
Uniqueness Value Elegance Strong/Powerful High Quality products Strong brand Timeless Pure Delivering high quality fashion, minimal and unique which will stand out from other luxury menswear brands. Luxurious chic, high quality fabrics. Strong, individual, powerful brand. Craftsmanship
Emotional Rewards Physical Benefits Attributes Positioning Essence
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Pac k agi ng
CÉ
For L I N Men E
The design ethos for Céline is classic and minimal but very powerful and effective to the consumer, the branding reflects well throughout the stores, onto the products and packaging which makes them stand out from any other designer. “Céline is the perfect storm of a truly original fresh voice, absolute perfection of quality, utter standards, disciplined brand stewardship and good timing.” (Anaya, 2014) As a whole the brand is chic and effortless which will come across in the menswear designs. The men will have separate packaging to the women, stating ‘Céline for Men’, so people are aware on the streets that there’s a menswear range. Each piece of clothing which is brought is wrapped in tissue paper placed in a white luxurious bag. The boxes are for the smaller leather goods which are purchased.
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CÉL
INE
For M en
CÉL
INE
For Men
59
S w ing Ticke t s
ÂŁ1,560
For Men
09876 09876 45 66 777
The swing tickets and hangers will be kept the same as the original women’s ones, however the new men’s logo will be added to the swing tags so consumers can tell them apart from each other.
60
H a nge r s
61
E x p e rimenta l R e ta i l i ng
It’s very important for CÊline to create an experience in store for customers, it will represent the brands identity so consumers choose to shop with CÊline than other competitors.
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Concess i on D e s i gn
For Men CÉLINE
CÉLINE
C ÉLI NE
CÉLINE
Concession designs will be kept with the design ethos of womenswear, with modern marble interior and sleek surfaces throughout the store. The store will reflect minimal perfection, the space is scattered with architectural furniture pieces and bright spot lights above the products so they stand out. Situated near the high end luxury designers such as Balenciaga, Alexander Mcqueen, Dries Von Noten and Maison Martin Margiela.
63
VM Window Displ ay
64
Keeping the Visual merchandising simple and sleek to reflect CĂŠline. The windows will have a printed copy of the campaign to capture peoples attention, and will be the first thing they will see when they walk past the store.
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I n teg rat ed Ma r ke t i ng S t r at e gy
The new marketing strategy for CĂŠline will be introducing social media, this will have a huge benefit to CĂŠline when considering a new digital strategy, highlighting videos and photos from behind the scenes and telling the story of the craftsmanship and history of the brand. It will deliver a brand experience and directly talk to their customers throughout the run up of the launch. The menswear will be launching new campaigns to create brand awareness.
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PR: IN -HOUSE PR is kept in house at Céline, to ensure consistent media engagement for consumers. “I would like to see Céline engaging with their consumers more online, so I can get to know the brand more” (Kevin, 2015)
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Ta rge t M e di a
To make people aware of the launch, Céline’s menswear campaign will be advertised in GQ magazine and L’Officiel Hommes.This will reach the right target audience and effectively get the message across. GQ magazine is produced monthly and L’Officiel is printed quarterly starting from February, June, October and lastly December.
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SOC IAL M e di a
CÉLINE Follow
CÉLINE https://www.celine.com/
For Men Coming soon..
Before the run up of the launch of menswear, social media platforms will be created to interact with customers. Creating social media for Céline will deliver a brand experience to directly talk to their audiences and drive brand equity. ‘Luxury brands need to wave goodbye to exclusivity and say hello to accessibility, allowing fans to not only participate in, but also shape the story. Social networking sites are now mainstream channels of interaction for wealthy consumers of all ages.’ (Blackden, Erminia. Luxury Daily, 2015) The social network platforms won’t only post photos and videos of products and catwalk shows, but it will build a story about how Céline was created and the craftsmanship behind the quality products.
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Digital marketing
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THE NEW WE B S ITE AU T UMN/ W I NT E R 16/ 17 SH O W CA MP AI G N IN S P I RAT I O N RE AD Y T O WEA R: W O MENS MENS HAND B A G S SH O ES LE AT H ER A CCES S OR I E S SUNG LA S S ES JE W ELLERY CÉ LI NE STO RES
S H A RE
AU TU M N/ WI NTER 16/17 CÉLINE
S HOW CAM PAI GN INSPI RATI ON RE AD Y TO WEAR: WOM ENS MENS HA ND BAGS S HOES L EATH ER ACCESSORIES S UNGLASSES JEWELLERY
TRENCH COAT IN BLUE TWEED WOOL 85% VIRGIN WOOL, 15% COTTON £1,600 GBP
CÉLI NE S TORES
STREAM GRID
SHARE
The menswear campaign will be added to the front page of the website. You can easily be navigated to the history of Céline, the inspiration, story behind the brand and creation process of menswear. Social media icons will be added at the bottom of the page so consumers are aware of their new social media platforms.
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Promotion al Marketing Video
72
The short promotional video will be uploaded onto Célines website, and their social media platforms to engage with customers and to develop brand awareness. The video will retain an impact and excitement for the audience, showing a strong, clear message to reach the desired customer. Keeping it short and compelling with elements of hand drawn animation. The mixture of hand drawn and digital elements portray an artistic modernity to the film and to the brand itself. ‘Céline is a powerful and luxurious brand but its not just a typical high end fashion brand, they have a lot of references to art and this is an element which helps the brand stand out, so I wanted to incorporate the individuality with some hand drawn art elements into the mix.’ (Jasmin, UCA FPI student 2015)
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Advertising
Outdoor advertising: “It carries the message to new people and demands its own unique form of attention. It’s also the medium which leads to the most mobile searches, and the one with the biggest word of mouth effect. The outdoor advertising audience is highly valuable; they are high income households, impulsive spenders, technology savvy and those who actively welcome advertising. The people you reach most with outdoor are the people you most want to reach – young, urban, mobile, active, connected and professional”. (Exterior Media 2015)
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For Men 75
C AM PAIGNS
The campaign will be put into CÊines windows, Harrods and Selfridges concessions to push brand awareness. The key advertisers will be in London and Paris, the campaign will feature in GQ magazine and L’Officiel Hommes. The countdown will begin with the print campaigns which will be posted onto CÊlines new social media platforms before the menswear range is launched in Paris during mens and instore.
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For Men
77
Blogger engagement 78
Pelayo Diaz http://www.katelovesme.net/
Pelayo is a blogger based in Paris. ‘His collaborations in the world of fashion feature luxury brands such as Alexander McQueen, Giles Deacon, Davidelfin and now, Louis Vuitton. (Vogue, Espana 2015) His digital presence will help grow Céline’s brand essence within the menswear market. He would be following the journey of Céline for Men. “This is the age of personality. Whether it be a celebrity, brand or blogger, in order to stand out, above the digital noise, there needs to be a singular voice or personality to communicate through those all important social media channels.” (Fashion beans, 2014)
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Blogger engagement 80
Toni Tran http://www.fashitects.com/
Toni is a blogger based in London. Toni Tran is always up to date with new menswear trends. ‘I share original professional content with an architectural perspective on fashion and lifestyle.’ (Cision 2014) “Bloggers have risen up into this space to become the editors of the Internet and help brands keep that stone skimming. Driven by a passion for their subject, these guys are now the opinion formers, influencer’s and leaders of modern menswear.”(Fashion beans, 2014) Toni has unique content which attracts a variety of different people to his blog, this will be hugely influential for Toni to write content about Céline and new updates of the launch. On his Instagram he has more than 14k followers, by posting photographs on his social media platforms will spread the word of the new launch.
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Men s we a r s how
For Men
AUTUMN WINTER 2016/17 MENSWEAR SHOW 22ND JANUARY 2016 2.30PM PALAIS DE TOKYO 13 AVENUE DU PRÉSIDENT WILSON, 75116 PARIS, FRANCE
Marie Agnes Gillot -
RSVP: 020 29 4999 https://www.celine.com/en INVITATION ONLY.
The debut catwalk show will be showcased in Paris at the Palais de Tokyo, to coincide with mens fashion week. The event will be on the 22nd January at 2.30pm. The Palais will be transformed with marble flooring and enclosed with white walls. The interior will have a minimalist aesthetic feel which will reflect the Céline’s overall branding and store layouts. The show will create a strong and timeless identity with the marble texture being the same as the invitations.
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2.7 P e r s ua s i on
Products:
The design of the products are chic and effortless, the clothing range is unique and the style is keeping with the brands aesthetic. The menswear range will be pushing fashion in a new direction for the autumn/winter collection. The quality of the fabrics will last a life time, it will be irresistible for men to resist. ‘Reinventing Cool’ (Vogue, 2014) 50 respondents were asked: ‘Which of the following best reflects your motivation to purchase luxury apparel?’
75% said Quality of the clothing is important to me. How would you envision the menswear range for Céline? ‘Classic, sleek, a smart sport aesthetic feel to the range’ (Hayden, 2014)
Branding:
Keeping within the brand ethos, the branding will be kept minimal and classic but very powerful to the consumer.
Marketing strategy:
Creating a social media page for Céline will help publicise and create awareness for the brand during the run up of the launch. On the social media platform videos and photos will be uploaded frequently to show the journey of Céline for Men. It’s very important to have consistent content online.
60 consumers were asked ‘what kind of advertising is the most powerful?’
30% Social media 26% Word of mouth 24% Outdoor advertising 9% Blogs 7% Television 3% Leaflets. Pricing:
The pricing for Céline is important to be kept high, the core customers for Céline are willing to purchase luxury, quality products. The craftsmanship taken to produce the products is one reason for the cost of each item.
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3 . LAUNCH MA RKET ING B USINESS PLAN
L aunch Marketing Cost s
Sales will be generated Strong advertising campaigns and PR activity: Advertising can be very costly but it will push the brands awareness and generate revenue. Growing international profit. Customer service within store Existing loyal customers Retail sales: Sales revenue will come from the profit of the flagship stores in London and Paris and concessions.
Manufacturing costs
Expenditure
Product shipping Event Costs: Venue hire, catering, invitations Department store costs Marketing costs (See Appendix 2 for marketing range plan)
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Investment cost s & intake margin
Estimated Retail sales ÂŁ19,806,360
Estimated Intake/Retail Margin 71%
Estimated Stock Investment ÂŁ5,706,840
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For Men The figures show an educated estimate from the retail margin, estimating the return for CĂŠline for Men. The company is estimated to sale ÂŁ19,806,360 which suggests a high quantity in producing the high quality products.
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C apital Funding
Céline for Men will be funded through the free cash flow by LVMH Group. ‘LVMH, the world’s leading luxury products group, recorded a 4% increase in revenue to reach £15.59 billion for the first nine months of 2014. ’(LVMH, Financial report 2014) Capital Investment required: £5,869,178 (See Appendix 4 for more details)
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Very good performance of LVMH overall ‘Mixed economic and currency environment Organic revenue growth of 5% Record Group share of net profit Particularly solid financial position Free cash flow €2.8 billion Net debt to equity ratio of 21%’ (LVMH Results 2015) Revenue: (Eur Millions) 2014
30,638
2013
29,016
2012 27,970
Strong performance from LVMH, with a steady growth. Net Profit: (Eur Millions) 2014 2013
5,648 3,436
2012 3,425
From LVMH’s free cash flow, Céline will be investing in 4% because it can help pursue opportunities for LVMH which will give Céline €11.2 million, this will be enough to launch Céline for men.
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Projected profit/Loss
Year 1 Profit: ÂŁ13,937,582
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4. SWOT
S
TRENGTHS
• • • • • • • •
Strong brand ethos Powerful and timeless branding Céline is owned by LVMH group - financially stable New modern marketing tools to target consumers Menswear market continuously expanding From primary research which has been gathered, men are willing to buy into the brand. High quality fabrics sourced from Italy Contemporary exclusive brand
O
PPORTUNITIES
• • • • •
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Creating social media platforms so the brand can directly talk to their audiences New marketing tools to reach out to new customers Social media will highlight Célines brand message and story behind the making of the menswear collection Launching an exclusive event after the menswear collection is showcased in Paris will increase brand awareness Mens growing interest in fashion
W
EAKNESSES
• Evidence from primary research some men aren’t aware of the brand Céline • Lack of advertisement and promotion • Brand identity for a larger demographic group • Evidence from primary research quite a lot of men only know the brand for their handbags, not a lot of promotion on clothing. • Could be seen as too expensive
T
HREATS
• Very competitive market • Competitive pricing • High street brands are replicating product range but selling it cheaper • Lack of promotion and advertising compared to some other luxury brands • Not selling online might limit the amount of consumers buying products
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5. Conclusion
CĂŠlines new marketing strategy will help increase the brands awareness among the menswear market before the launch, it will get consumers talking and excited for the new menswear range. The social media platforms will have consistent activity to engage with the target audience, and will be a huge benefit when considering a new strategy to compete with other luxury competitors. Even though the marketing costs are quite high, in the long run more people are going to buy into the brand and become more engaged. CĂŠline for men has potential for future development, and to develop their customer base internationally. Further expansion will have to be thought carefully, introducing themselves in different markets when they are doing well. After 1 year the product range can be widened, and can be focused on leather accessories as these are the strongest within CĂŠline.
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Appendices
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Appendix 1: Range Pl an Range Plan : Coats, jackets and jumpers
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Range Plan : Trousers, Shirts and Tops
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Range Plan: Leather Accessories
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Appendix 2
Trends in the age structure of the UK male population, 2009-19
“The 6.4% decline in the youth male population will pose a challenge to the menswear sector as young men are driving menswear sales, with males aged 16-24 equally as likely as young women (50%) to have bought clothes in the last three months, showing how fashion conscious this age group is, irrelevant of gender.� (Mintel, Menswear 2015, Market environment)
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‘For the fifth consecutive year the fashion and leather goods segment increased its share of the total luxury goods market.’ (Mintel, Luxury goods international 2014) People are still spending money on luxury items, fashion and leather goods shows the largest segment in the market.
Appendix 3
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The graph shows the marketing costs for Céine for men, the capital investment will come from LVMH Group. The costs have been estimated from in depth research. The cost of the merchandise has been estimated from adding up the total costs from the range plan suggesting that Céline will sell all their stock. Production costs continue to be high and increase when new season is being launched.
Appendix 4
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LVMH Group, Céline Company overview. At: http://www.lvmh.com/the-group/lvmh-companies-and-brands/fashionleather-goods/celine (Accessed: 9.02.15) LVMH Results: (2015) Results. http://www.lvmh.com/uploads/assets/Com-fi/Documents/en/Results/FY_2014_ RESULTS_VA_03_02_2015.pdf (Accessed: 30.03.15) Matthew, LFW interview 2015. [Interviewed by Marie Lewis] (22.02.15) Mintel- Luxury goods retailing 2014 Market Segment. At: http://academic.mintel.com.ucreative.idm.oclc.org/ display/712894/ (Accessed: 02.02.15) Mintel, Menswear 2015- Market size and forecast (2015) At: http://academic.mintel.com.ucreative.idm.oclc.org/ display/733024/ (Accessed: 05.04.15) Mintel. Menswear 2015- Market Environment. (2015) At: http://academic.mintel.com.ucreative.idm.oclc.org/ display/733020/ (Accessed 02.04.15) Mintel. Menswear, March 2014a. The consumer where do men buy? At: http://academic.mintel.com/ display/699444/ (Accessed: 9.02.15) Mintel. Menswear, March 2014b. Market size At: http://academic.mintel.com/display/699435/ (Accessed: 12.02.15) Vogue | 2015. Pelayo Díaz blogger [ONLINE] Available at: http://www.vogue.es/moda/articulos/entrevista-a-pelayodiaz-kate-loves-me/19812. [Accessed 25 March 2015]. Vogue. 2014 The Philo Factor: Reinventing Cool - Céline’s creative director, Phoebe Philo, talks to Alexandra Shulman [ONLINE] Available at: http://www.vogue.co.uk/special-events/vogue-festival-2014/vogue-festival-2014/ saturday/the-philo-factor-reinventing-cool. [Accessed 25 March 2015].
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