Rachael Bradley- 26026049
INTRODUCTION Founding designer background Claude Montana is a French fashion designer born in Paris, 1947. As a child of three, he grew up in a very close and culturally enlightened family. His father, who was Spanish and had been in the military for a big portion of his life, wanted Montana to follow in the footsteps of his older brother who had pursued a career in science. However, throughout Montana’s childhood, he took a strong liking to his German mother’s clothing. His aunt was another fashion influence. He took note of her distinctive, androgynous style – she wore suits with nothing under them – that was complimented by her tall, slim figure and short, cropped hair. This is a look that is echoed in many of Montana’s models (Montana and Cro, 2011, p.13). From a young age, another major influence on Montana was the theatre: he loved the architectural features and subtle use of gold that complemented the rich colours of the theatre interiors and costumes. The designer, reflecting on his experience at the theatre has said, “I was fascinated by the sceneries, the sumptuousness of the colours and the costumes; but also by the dramatism of the direction. From this period of my teenage years, I keep in my mind some unforgettable moments such as Marc Chagall repainting the ceiling of the Opéra Garnier at André Malraux’s request.” (The Glass Magazine, 2017). At the age of sixteen, Montana and his younger sister, Jacqueline, who had a great input into Montana’s early career, sneaked out from home so that he could partake in a part at the Opera Garnier. The play was named Verdi’s Don Carlos; the costume design being produced by Leonor Fini in 1963. This started Montana’s love for costumes, and their innovative, glamourous assets (Montana and Cro, 2011,p.14).
The brand history and heritage and Initial product offerAfter passing his Baccalaureate, Montana moved to what he recalled as “Swinging London” where he would go on to launch his first product: Papier-Mâché jewellery. Accompanied by his friend Alain Urcun, as well as Olivier Echaudemaison (who then worked for British Vogue as the Fashion and Beauty Coordinator) who introduced Montana to David Bailey, the iconic photographer of the 1960s. Remarkably, Bailey promoted Montana’s Papier-Mâché jewellery in an editorial meeting with Beatrix Miller (the then editor of Vogue) who featured it on the magazine’s front cover (The Glass Magazine, 2017). After this initial success in London, Montana returned to Paris in 1973 where he began working at MacDouglas Leathers as a couturier. Here he learnt the techniques of the leather trade as well as working alongside John Voigt, the assistant house stylist. This was the start of Montana’s career as a French fashion designer and for his love for leather: a material that Montana felt was underappreciated and neglected. Eventually, Montana moved on from MacDouglas and went to work for numerous other ready-to-wear firms, helping him gain a great insight into the fashion industry and develop the skills he would need to succeed. By 1975, Montana gained a breakthrough in his career, in which he launched his first collection. Located in Les Années 30, a Parisian restaurant, 120 people showed up to view his radical designs. Montana recalls, “I showed clothes in velvet, then at Angelina’s, the Paris tea room, clothes in gold and ecru for the autumn winter” (Montana and Cro, 2011, p.15). Montana has since been applauded for his unique silhouettes, structured shoulders, exaggerated shawl collars and the complementary fit to every physique he created by cinching in his garments with a simple button. His collections were often recognised for his unique and fresh take on fashion. In 1975, he released his women swear
collection named State of Montana as well as Montana Femme. Due to the loss of a court case with Montana Knits, he would eventually rename State of Montana to the Montana White Label. (Fashionencyclopedia.com, 2017) By 1979, he had opened his own company - The House of Montana – in Paris. This led on to a series of successes: the release of his 1981 menswear collection named Montana Hommes and the development of his legendry Power Suit which was labelled as “a symbol for the 80s” (Seeling, 2010, p 429). Moving on to one of the highest points of his career, his work with Lavin from 1990 in which he collaborated with them on their Haute-Couture collections; winning two of the prestigious Thimble Awards for his work in 1991 and 1992. After he fell into bankruptcy in 1998, he went on to create his own ready -to-wear firm, Montana Blu. Today, Montana continues to work as a designer for his new brand, Montana blue. However, the brand has failed to accomplish a presence in today’s fashion market. Those such as Stella McCartney, YSL and Hermés have a large presence in the luxury fashion market. By keeping up to date with contemporary fashion and developing with their consumer, something Montana may lack in. While Montana relates to the brand heritage in his recent designs, they are also dated and could be seen as outmoded.
Brand PhilosophyThroughout Montana’s career he made it very clear that he wanted to design for a certain type of woman; one which he referred to as ‘The Montana Woman’. He believed that the woman that wore his clothes was one of power and intensity. However, the brand philosophy also included a delicate, feminine touch: “I admire sumptuousness in a woman. And sumptuousness does not exist without boldness. I want to be able to dream when I make clothes” (Montana and Cro, 2011, p.20). The Montana Woman is one that has admirations, is strong and unpredictable. They have a sense of seduction in the most astounding way.
INTERNAL ADUIT/BRAND POSITIONING Customers Montana has always had customers that desire precise, handmade, fashion-forward couture garments. Due to the nature of his previous consumer - a middle aged, affluent with demanding characteristics - many of his collections were risky. For instance, it is said that after his 1992 fashion show as creative director of Lanvin that, “He received critical acclaim for his haute couture collections, but despite this, his bold designs - created at a total estimated loss of $50 million-were financially disastrous” (Steele et al., 2016, p.423). Due to the severity and risk of his products’ appearance, Montana did not appeal to a large consumer group, which led him to bankruptcy. This could also be that Montana’s retail outlets didn’t value customer service and that they didn’t market the products successfully. In a study of the retail industry, data shows that it will grow to a value of $28 trillion by 2020 (Pratap, 2017), meaning that superior customer service will be expected from a consumer of the future. Also, we know that today’s customers are driven by strategic marketing campaigns across multi-platforms.
CompetitorsCompetitors in Montana’s heyday included Thierry Mugler who shared a very similar aesthetic: bold clothes for a power woman. Much like Montana, Mugler was a prominent designer of the 1980s.
Originating from Paris, Mugler released his first collection ‘Café de Paris’ in 1973. Described as “Going against folkloric, unstructured fashion, the collection had an urban, sexy, flirty vibe, confident in itself. It exuded avant-garde ultra-femininity, a dramatization of the everyday unveiling of a woman” (Mugler.co.uk, 2017). A similar description to Montana’s collections, Mugler wanted to display the power he saw in women through his clothes. Opposed to Montana, Mugler expanded his brand through fragrance, creating best sellers such as ‘Angel’ and ‘Alien’. Today, luxury brands such as Gucci carry a number of different modern designs that were displayed by Montana in his previous designs. Gucci carry their own leather jacket segment featuring embroidery, alternate colours and oversized fitting, much like the 80’s Montana designs. Other competitors for the revived Montana brand could be Chanel, Dior and Saint Laurent, which have survived throughout the progression of the luxury market. This due to the brands development along with its consumer, in a survey conducted by Accenture, it found that “93% of enterprise-level executives think innovation is critical to their business, but only 34% believe they had a well-defined innovation strategy in place.” (Brandwatch, 2017) Evidencing that brand innovation and new developments is key for brand growth, something Montana may have required.
Suppliers With the political and financial turmoil being created by Brexit, it may prove to be more difficult for EU countries, like France, to carry out business with the UK: ”Exports of goods and services to other EU countries were worth £240 billion in 2016, while exports from the rest of the EU to the UK were worth about £320 billion” (Full Fact, 2017) In the past, Claude Montana preferred to source his leather from London. Being part of the EU, this was not an issue until now. On the positive side, It will propose that the 2020 Claude Montana re-launch should be in Paris due to the majority of loyal consumers from the brand’s original heritage being located there. Therefore, the opportunity to source from local suppliers will add to brand’s sustainability agenda by sourcing from and protecting local tanners/leather suppliers; thus reducing the business’s carbon footprint and becoming part of its marketing message. It was found that "72% of buyers always or generally prefer to source locally, while just 10.8% prefer to source globally" (Thomas Publishing Co, 2017). This strategy will also create the opportunity for greater control over aspects of the supply chain if there is an issue with the machinery, material quantity or employment issues.
Distributors Due to the nature of the products and the luxury market they will be sold to, an exclusive distributor will help the brand retain its integrity as well as previous reputation. Due to brand control being a priority, a locally sourced distributor will be a fundamental. This is to ensure that the distributor has the same knowledge of the local market development and retail climates, ensuring customer contentment. However, the distributor will act as the middleman in the development of the relaunch. In a way to engage with the company, the supplier will contact the distributor who follows on to wholesalers. Again, this strategy will feed into the communication of Montana being a ‘local’ and trusted French brand.
Raw Materials Today’s millennial shows an appreciation towards sustainable, recyclable fabrics as apposed to animal product products that Montana’s previous audience may have favoured. Stella McCartney, a potential competitor, is a designer recognised for her use of sustainable material and use of recycled plastics. By joining the circular economy, the Montana re-launch will participate on the use of reusing second hand materials and recycled plastics instead of disposing them in landfills and polluting our
ocean. The Real Real Corporation employs the idea of sustainable products and promotes the circular economy; they are the first luxury members of the Ellen MacArthur Foundation CE100 USA , which says, “The circular economy is restorative and regenerative by design. Relying on system-wide innovation, it aims to redefine products and services to design waste out, while minimising negative impacts”(Ellenmacarthurfoundation.org, 2017) . Through responsible innovation, the ability to recycle plastics into new fabrics will promote a new technological point of view for the brand, adding to the garments unique selling point. The Parley For The Oceans project works with different designers in order to reuse virgin plastics disposed into the oceans and recycling them into new man made materials, “From trash to premium. Together with leading material experts, labs and innovators, we give plastic waste new life in ways that reduce the use of virgin plastics and catalyse awareness, funding and eco innovation toward long-term change.” (PARLEY, 2017) This something the Montana re-launch could feature.
Brand positioning Paris will be the key consumer location for the re-launch and due to the local customer tastes, the consumer looks for well-manufactured leather goods that project the lavish, successful lifestyle. The garments will be distributed to elite retailers such as, Galleries Lafayette, Le Bon Marché, and BHV MARAIS (as well as the global equivalent) as these retail outlets offer French luxury at an affordable price. Through investigative, primary research, I have discovered that Harvey Nicols would be a compatible partner in the UK due to the fact that it is a luxury department store, which stocks modern bridge and contemporary collections. One of Paris’s luxury market locations is Rue St Honoré. This is where designers such as Hermés YSL and Lanvin are located. Having worked with Lanvin before, Montanas boutique may have had a potential consumer base around this area in his past career. However, today Montana produces affordable luxury that could be found in Les Boutiques Du Palais, a famous shopping centre in Paris.
PORTERS FIVE FORCES Threat of new entrantsNew, independent designer/retailers may be influenced by the Montana brand’s signature designs and may take away from the significance of the original developments. As previously explored, Gucci often features designs similar to Montana’s. The use of Aztec colours and embroidered garments has a strong presence in today’s collections. In Gucci’s spring/summer 2018 ready-to-wear collection, they include leather pieces with unique embroidery and animal print, for instance, their peacock feather leather coat. Also, the use of oversized collars and structures shoulder pads is prominent in their collection. This was a statement feature in Montana’s garments. (Vogue, 2017) Retailers are in constant expansion trend lead fast fashion brands such as Zara and H&M often recreate designer products such as those made by luxury brands. Zara is well known for their popular leather products like their bright leather biker jackets, something Montana has also created in the 80s. Today, this could influence the potential consumer by offering a lower budget solution. New brands are introducing their own individual selling points, one being online services. The Montana brand could be featured online allowing consumers to access and purchase the garments at any impulsion, preventing them for searching new entrants that may offer services the Montana brand doesn’t.
Bargaining power of suppliers –
Materials that will be featured in the re-launch maybe be somewhat particular and may vary in suppliers. For instance, with the success of the brand in the 1980s, Montana was able to access his leather from London in order to get the quality that was suitable for his brand. However, due to the United Kingdom leaving the EU, it will be harder to gain suppliers from the UK. As a result, Montana will have to look into other EU-based leather supplying centres such as Italy, Portugal and Spain. Since the introduction of Brexit, the EU has a high demand of leather suppliers “The leather and related goods sector comprises about 36,000 enterprises and generates a turnover of EUR 48 billion. (…) The EU is the source of some of the highest value calfskins in terms of leather and raw material. Tanneries in the European Union are typically family-owned, small and medium-sized enterprises.” Some fabrics may prove hard to be locally sourced, as well as the supplier may have a high demand. Some suppliers may only cater to certain brand’s categories, meaning they may be restricted as to how much they can supply to a particular brand as they may prioritise others. Because of the value of the product, the supplier power may be higher as well as costs and quantity of the materials (Berg, Pietersma and Assen, n.d.)
Bargaining power of buyers – Consumers have a vast effect on brands and their product value. Many retailers may decide to follow trends set by luxury brands and offer them at a cheaper price, distracting the consumer from the brand’s value. “Today’s consumer – particularly millennials and those of Generation Z – has come to expect instant gratification. As such, six months is too long to wait for a dress that just went down the runway, and several thousand dollars is too much to pay.” (Dazed, 2017) Ultimately, this could lead to the brand cheapening the product, meaning the over all value of the product may suffer as a consequence. By applying forward integration, this will allow the brand to have more control over the supplier and distributor, and take over more market share. Another risk is loosing how the consumer resonates with your brand, by creating alternate products and designs like Montana did in the past, the brand could either appeal to an alternate consumer or put their current ones in jeopardy.
Threat of substitutesDesigner goods are often sold as counterfeit, cheap copies both online and at numerous international markets. This could potentially damage the reputation of the brand, as some purchasers of these products may not have knowledge of it being a replica, leading them to believe this is the quality of the own brand product. In an article in Vogue, it was stated, “In 2007, the value of cross-border trade in fakes was thought to be $250 billion, or 1.8 per cent of total global imports” (Pithers, 2017). Retailers also have the power to create duplicates of a designer product that may initiate potential consumers to purchase the similar products instead of aspiring to have the brand’s original. However, by putting the brand’s signature logo and elements that other products cannot substitute for, such as the quality of material and benefits of the new technology, it will be difficult to divert consumers from the brand. Also, by expanding on the communication channels, which were not previously available, the consumer will feel that they can connect with the brand at anytime, as well as appeal to a global audience. By expanding the brand’s online presence, it is said to have “allowed fashion brands/retailers to establish a presence, communication channel and transactional websites. The internet allows companies to be international without the coast associated with this strategy” (Easey, 2009, p.235)
Rivalry among existing competitors-
Throughout Claude Montana’s career, he had many competitors; the most obvious of these being Thierry Mugler and Anne-Marie Beretta. Today, Parisian brands such as Hermés and SMCP (Sandro Maje Claudie Pierlot) have been placed in the top 20 fastest-growing luxury goods companies, FY2013-15 CAGR (Deloitte, 2017,p.27) as well as touching on the uprising of Longchamp who achieved a double digit market growth in 2017. (Deloitte, 2017,p.38) These may be three of the main competitors for the Montana 2020 launch in Paris as well as existing luxury brands such as Chanel, Dior and Louis Vuitton who already have a strong market share in France. Taking away from the designer’s intake is something that may effect the re-launch of Montana. Ready-to-wear retail is another competitor to the designer industry. Retailers such as Top Shop, New Look and the global equivalent are capable of creating their own identical version of a designer product, while selling it at a cheaper price. However, the 2020 re-launch will have a different approach to fashion with both key elements from the origins of Montana, and new ideas.
VISUAL IDENTITY Claude Montana is a true representation of his own brand. Montana often showed his love for leather throughout his own personal style and would reflect his own brand image. His previous wife, Wallis Franken, was described as his “muse” through the controversial years they were together. In every aspect of his brand, he made sure his identity reflected through it. His values toward the brand have been consistent from the beginning of his career; his brand demands power. Whether it is though his garments or those who wear them, Montana has always insisted that the consumer match the brand. By creating a target audience with the same characteristics and values as the designer himself, Montana preached, “The Montana woman manages her own life. She’s a fighter. Montana clothes give her style and stature. You can’t help noticing her” (Montana and Cro, 2011,p.29). He carried these beliefs from the independence and confidence portrayed onto him by his mother and aunts. Much like Montana, his brand personality reflects upon this: rebellious, stimulating, dominant and confident, down to the personalisation of his own logo, his signature. Formally displayed in his 1960s sketches presented in Mademoiselle âge tender, Montana showed his dedication and intimate elements added to the brand. The serif exterior of his logo is scalable and legible. This means that the indent can be used on a number of different backgrounds, garments and prints, something that will be incorporated within the re-launch. Through experimentation, the font shows its ability to be edited into both a smaller complex and larger through free hand, which is something Claude Montana features in many of his designs. He has also featured a Monogram in a few of his products, in which he uses the same M shown in the signature in metallic gold as opposed to the royal blue featured in the original. Something that Montana did not create was a repeated visual motif. This may have been because of the nature of his products and did not belong in his brand DNA. One colour associated with his brand was royal blue, a colour that suggests superiority, loyalty and confidence (Project, Bourn and Bourn, 2017) , which is something Montana often expressed his clothes required from his consumer. Often, the royal blue will be featured within his clothing items. For instance, his iconic royal blue leather jacket featured in his 1988 menswear collection, as well as another memorable piece shown in 1983 Autumn/Winter campaign, the royal blue is a colour that is associated to his brand. Although there is a clear sequence of this colour, he has previously been described as an avid colourist as he was recognised for his experimentation of colours, one being “ his contribution to the 1980s’ need for splendour was white leather decorated with gold embroidery” As well as his use of bright unorthodox colours. (Seeling, 2010 p429)
Coherently featured in every one of Montana’s collections was leather, his signature material. His astonishing love for the thick, prominent material was expressed through many of his designs that would go down in fashion history. After learning the leather trade in the beginning of his career with at MacDouglas with John Voigt, Montana began by embroidering and altering the leather to fit the DNA of Montana. He would combine leather in his designs as much as he could, occasionally layering different tones and cuts of leather on top of each other. By adapting the leather to suit each season, he would feature the material in his looks by creating a skirt or adding accents of leather. The leather was handled with the upmost expertise with every stich in place. The use of leather and detail will be continued throughout the 2020 Launch. However, due to the up rise of eco-consciousness and the ethical concerns of today, leather is a material that can often be frowned upon by today’s millennial generation; something that may turn off the brand’s target consumer of tomorrow. Therefore, by relating back to both the heritage of the brand and today’s social values, the use of faux leather in the garments is one that will support the fits into the wellbeing economy, which rises by 3.7% each year. (Ikonlondonmagazine.com, 2017) With layers put into every piece, they would other feature accents of “tiger, Dalmatian, giraffe and zebra print. Shoes were made to match, in the same leather prints.” (Montana and Cro, 2011, p.32) The amount of detail put into every garment was an aspect that Montana would take pride upon. The Montana signature silhouette was one desired by many, it was described as “Claude Montana is a name that conjures up to one thing: shoulder-pads. Geometric, uncompromising coffee table sizes shoulders jutting authoritatively a hand span waist.” (AnOther, 2017) Frequently, he experimented with different structures and materials. “He often blended extreme proportions from both masculine and feminine fashions into a single ensemble, he was an avid colourist who opted for colours such as vibrant purples, lipstick red and even metallic, as well as neutral tones.” (Steele et al., 2016,p.423) As of today, gender neutrality is a social issue that is changing in fashion. Montana, recognising the zeitgeist, created a silhouette that would complement both a man and women. Today Montana continues to create similar designs that he resembles his trademark image. However, has failed to create the contemporary, outstanding, futuristic designs he was once known for.
Brand identity prism Physique Montana aspired to give a structured physique. Emphasizing on each aspect of the body; broad shoulders, slim waist,a elongated legs, etc.
Personality Daring, e distinctive, innovative, confid a nt , influnt ial , domi nant .
Relationship Dependable, c Unpredicted, eStimulating.
Culture
Reflet ion
Self-image
A androgynous and confidnt wo me n wh o conveys power.
A successful woman who is self determined.
Liberation, egalitarianism, amplifict ion, enthusiasm
MARKETING MIX/PPPP Product Montana’s first product was Papier-Mâché Jewellery, which was his entry-level product. This is a significant entry-level product as it is both durable and sustainable, meaning that the consumer can keep the jewellery for years, this ensures immediate brand value to the consumer. In later years, Montana released his own perfumes, which are also potential entry products, by enforcing product development, and taking aspects from the original products and developing them to be appropriate for today’s market, it will appeal to the new target audience. Papier-Mâché could be added to a new pair of recycled earrings, setting it at an affordable price in order to attract consumers that will soon buy into the brand. The former core product, the power suit (one of many) was appealing for those with a disposable income. The garments offered were not ones of everyday and therefore were not essential. These items were ones that consumers would begin to invest in after developing brand loyalty and require selective distribution through specialist channels due to the durability of the products. (Brassington and Pettitt, 2001)
Price After examining the profit margin of the upcoming products, the price will be influenced by the overall cost of supply chains, distributors and marketing strategies. Hermés supply small leather goods, this includes products such a women’s wallet starting at £500/€545. This could be a potential entry-level product as Montana featured his own leather line in 1996, in which he featured leather bags, purses and more. The price of the product will be anticipated through using both a competitive and skimming pricing strategy (Marketing91.com, 2017). These strategies will prove effective for the 2020 re-launch when comparing previous products and competing with existing luxury brands as well as applying the premium pricing strategy, this will appeal to the target consumer as they look for innovative, new garments that have a striking unique selling point. The cost of the entry-level will be marked around €200-€300 for small leather accessories (i.e. the signature Montana gloves, similar to the original marketing price). If the 2020 re-launch was to include faux leather, the estimated price per yard would cost of €15 (Tips et al., 2017) whereas, real leather products range anywhere between €15-€40 depending on the quality of leather per yard. (Winterssewing.com, 2017)
Promotion Claude Montana previously limited the promotion strategies of his brand. This may have been due to the product life cycle of his brand, and the decline of his garments, leaving him no opportunity to advance his marketing strategies to Internet platforms. However, some uses of print media, public relations and direct marketing will be applied to promote the 2020 re-launch. As the brand was featured in internationally known magazines such as Vogue, the brand reached slight global recognition. Nevertheless, by employing marketing strategies popular today, such as Internet marketing, social media and direct messaging, the consumer will receive constant brand promotions. Online services are a key promotional strategy in todays communication channels “Part of the reason why consumers have been able to seek discounts and promotions has been their uptake on ecommerce and digital tools, which has created price transparency across brands and regions.” The Business of Fashion, 2017,P.16)
Place
Montana proved to have global recognition but and not supply merchandise internationally. With focuses in the EU, specifically Paris, one justification may have been that he was not equipped with the resources (internet) or did not make enough profit to penetrate further into the global market. The advertisements displayed in print media as well as runways were the brands only promotional touch points. Montana did not create any alternate products for certain global markets. This may have been due to his collection being couture and primarily promoted to the French consumer.
PESTELPoliticalDue to the recent Brexit votes, it will be harder to work globally, and alternate with the United Kingdom. It has shown that there has been a downfall in EU sales and advertising, saying in 2017 alone “22% of 200 companies surveyed lost business due to the Brexit vote.” Proving it may be difficult to trade outside of the EU as the re-launch will take place in Paris. (Campaignlive.co.uk, 2017) On the other hand, if the collection expands in market share and eventually goes into different economies, there may be a problem with financial exchange, one consumer may have to pay more for shipping and packaging in order for them to receive the product.
EthicalThe rise of tax could effect the amount of money a business has to pay for manufacturing, which could have a negative effect on the original product price, making the costs go up to ensure product production is paid for. Employment rates may be at a low, meaning more customers cannot afford to purchase the product due to unemployment or low salary as “economic growth means that people are going to spend more money” (Pratap, 2017) Customer discretion is another segment that may affect the product profit; it is all dependent on their disposable income. Due to the value of each euro going down, effecting interest rates. Due to recent events, the luxury market has taken a withdrawal in sales in Paris as of the terrorist attacks. “The Bain report expects annual sales of personal luxury goods, which include high-end fashion, handbags and jewellery, to total €280 billion to €290 billion by 2020.”(Paton, 2017) Rising from €254 billion to €259 billion in 2017. However, due to the rise of security and Paris being the leading economy for luxury goods, there is still a large market share for the re-launch to take place.
SocialMontana’s previous brand values would both benefit and hinder today’s economy. Following on from the rise of wellbeing, it has become important for the millennial of today to lead a healthy life to feel good. Animal cruelty has been an issue addressed by many brands today. One remarkable example is Gucci. For their Spring/Summer 2018 “it has signed up to the Fur Free Alliance, an organisation that promises to end exploitation and killing of animals for fur, as part of a wider sustainability plan.” (The Business of Fashion, 2017) This social issue is something that the Montana re-launch plans to follow. By offering sustainable, locally sourced products their new consumer will find that the brand is trustworthy, creating brand loyalty. However, this may affect the previous target market that may prioritise the use of leather. Though, by using new unique selling points, such as recyclable faux leather of the best quality, the same value will be found within the product.
Technical-
Online shopping is the new mainstream way of purchasing products. It has been predicted, “By 2020 MGI expects some 940 million online shoppers to spend almost $1 trillion on cross-border ecommerce transactions. Industrialization and urbanization in emerging economies, aging populations in established markets, and new technologies further complicate the current environment.” (Amed et al., 2016) Todays millennial act on impulse and want easy access to fashion instead of going out of their way to visit their local store. By creating numerous online communications channels as well as an online store, the consumer of today can feel priorities and rely on the brand to have a quick and tranquil approach to helping the consumer. On the other hand, the previous consumer in generation x may not have Internet access, or find it unappealing and immature, causing the older consumer to feel neglect.
EnvironmentalThough the 2020 re-launch will be locally manufactured, product transportation may add to the pollution. France faces one of the worst cases for water pollution. Due to the water contamination, France has previously experienced acid rain, damaging their forests, which covers around 30.3% of the land. (Scribd, 2017) Conversely, the products could be locally sourced as well as the use of organic, natural fabrics preventing harm to the environment. For instance, the product packaging will be created from only natural, recyclable fabrics in order to avoid causing damage to the environment. This will prevent harmful greenhouse gasses, which are produced by waste that accumulates up on landfill sites.
LegalThe customer rights act which was put in place in 2015, explains that every customer must know how to care for the product, the contents of the product and customer safety. Therefore a care label is a key aspect of the products in order to give a clear indication of what it serves and the maintenance it requires. The Parisian market is the prominent in luxury fashion, it is said that within its employment laws “As of 2015, the national minimum wage in France remained fixed at 1,458 euros per month. This equates to 17,496 euros per year.”(Anon, 2017) this also ensures that each of the employees working for the 2020 re-launch is paid a certain amount of the product earnings. Countries such as China may not be able to access the products through online services due to Internet laws due to administrative regulations in which they have more than 60 of. These laws also affect North Korea, Vietnam and Cuba. These laws may limit the brand from penetrating future rising economies.
CONSUMER ANALYSIS THROUGH SWOT Originally, Montana targeted a mature consumer base, often refereeing to his consumer as a ‘Montana woman’. He wanted women with a disposable income, as stated previously “His creations matched the consumer mood of the time – budget wasn’t an issue, and the more couture and highenergy his ready-to-wear looked and felt, the better.” (Dazed, 2017) Montana’s prime target consumer were Men (occasionally) and Women of middle class to upper class. Originating from generation x, Montana’s career would be at its prime. Commonly, the consumer would be European or English as he produced work in the United Kingdom and located his headquarters in Paris, his main target market. Though market competitors may have there own brand loyalty in place, the revitalisation of Montana has many opportunities to penetrate alternate market segmentation. Having already created the signature Montana garments, the re-launch could feature both old products and develop on a new product market, where as brands such as Hermés, may be stuck in a certain product segment and risk loosing consumers instead of gaining.
The re-launch is planned to take place in both Paris and progressively penetrate the American market as both show potential market share. There has been evidence that America has a strong market for Luxury products. Due to the high value of the dollar, it is more affordable for the US to import luxury goods. Within the next year the growth market is expected to continue growth in the biggest luxury goods market (Deloitte, 2017, p.14). There is already a market position for the Montana brand due to its permanent mark in couture history, housing a loyal Parisian consumer base that may purchase from now online markets selling valuable garments. Stores such as vestiairecollective.com and 1stdibs.com supply Montana originals’, showing an existing online market for the brand. However, due to the adjustments of brand values leading from raw leather, to faux leather, previous consumers that favour the use of animal products in luxury garments may find this unappealing to the brand that is goes against the brand DNA. The French luxury market is expected to have a large market share for the Montana re-launch. Being one of the lead luxury markets, a report on the market growth explains “we expect luxury sales in France to reach €19.0 billion by 2019, adding an additional real €1.2 billion to the market in the next five years.”(Roberts, 2017) Also explaining the more affordable luxury brands are taking a larger section of the market. An opportunity for re-launch would be to release a new product type. One being Luxury sportswear wear. Being a predominantly a domestic female consumer, generation x may not approve of the new product development. Generation z is another target consumer for 2020. In a report produced by the BBC, it shows that generation z prioritises education and family as well as social media (Bbc.co.uk, 2017). For this consumer, the use of sustainable and technologically enhanced materials will provoke the consumer to look further into the brand as well as the environmental benefits of purchasing the garments. By creating a strong online presence through varied communication channels such as Instagram, Facebook and Snapchat, millennials can access the brand through commonly used social media to keep updated on new inventions and techniques the brand will put forth in each garment. Some of the aspirational consumers belong in those of BRIC. BRIC has been described as a group that believe in “the idea that China and India will, by 2050, become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials” (Staff, 2017). Implying the power that BRIC will have power over the marketing industry, which could affect the future manufacturing of Montana. China is one of todays leading consumer markets for luxury goods in addition to Russia. The Chinese luxury market produces more than half of the global market profits, in which many purchases are driven by tourism and values not only ascetic properties but quality. (Amed et al., 2016, p.20). Paris is one of the main tourist attractions around Europe, combating Italy and Germany, especially for the Chinese; “France is by far the most popular European destination for Chinese tourists, with departures to France from China totalling 433,000 in 2013. Additionally, expenditure by Chinese tourists in France is set to reach US$1.0 billion by 2018, up from US$838 million in 2013.” Thus concludes the Chinese market may contain generation z tourists as an aspirational target consumer. If the brand expands through the global market, into those such as Russia, the campaigns and product assets may have to be adjusted to fit the market. For instance, being a democratic society, Russian laws ban propaganda that may encourage homosexuality to children (Rankin, 2017). Thus means that some laws may prevent the brand from launching in their country due to the brands values and content. Because of the range of different target consumers, the brand will cater to each culture, creating substitute products and campaigns for aspiring consumers in the future.
Ansoff Matrix Chart
Recommendations
It will propose that the 2020 Claude Montana re-launch should be in Paris due to the majority of loyal consumers from the brand’s original heritage being located there.
There is opportunity to source from local suppliers will add to brand’s sustainability agenda by sourcing from and protecting local tanners/leather suppliers; thus reducing the business’s carbon footprint and becoming part of its marketing message. The Montana re-launch will participate on the use of reusing second hand materials and recycled plastics instead of disposing them in landfills and polluting our ocean.
The garments will be distributed to elite retailers such as, Galleries Lafayette, Le Bon Marché, and BHV MARAIS (as well as the global equivalent) as these retail outlets offer French luxury at an affordable price.
There is already a market position for the Montana brand due to its permanent mark in couture history, housing a loyal Parisian consumer base that may purchase from now online markets selling valuable garments.
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