Lifestyle Market Segment
What Are Lifestyle Brands?
• A lifestyle brand is a company that markets its products or services to embody the interests, attitudes, and opinions of a group or a culture. Lifestyle brands seek to inspire, guide, and motivate people, with the goal of their products contributing to the definition of the consumer's way of life. • They often operate off an ideology, hoping to attract a relatively high number of people and ultimately becoming a recognized social phenomenon. SOURCE: Lifestyle Brands - A Guide to Aspirational Marketing Saviolo, Stefania; Marazza, Antonio (2012).
Lifestyle Market Segment • In an effort to diversify its business, XZY Company is focusing on gaining market share in the following 2 Lifestyle Market Segments in the next 3 years. • Hospitality • Hotel Management Groups • Luxury Property Resorts & Golf Courses • Restaurant Groups • Entertainment/ Event Destinations • Fashion Design/Apparel Manufacturing
Current Market Factors for Lifestyle Companies: Hospitality • In 2016, Los Angeles County had 47.3M visitors. • 29.2M hotel room nights were booked and resulted in 81.3% occupancy rate in Los Angeles County. • In 2015, the Top 15 Domestic Overnight Visitor Markets Study found Los Angeles County market equated for 20.4% of the air and ground visitors.
• Per the 2015 study findings, California equates for 38.9% of traffic. SOURCE: Los Angeles County Tourism Board
Current Market Factors for Lifestyle Companies: Fashion Design/Apparel Manufacturing • In 2015 more than $46 billion in apparel was shipped into Los Angeles area ports. • Textile mills, apparel manufacturers and wholesalers account for 1,537 of Los Angeles County’s companies with $1M or more in revenues in 2013. • The fashion industry helps Los Angeles beat national employment trends with increases of 3.2% year-over-year.
SOURCE: CIT Group & California Fashion Association, The Business of Fashion: Economic Impact of L.A. Fashion Industry, 2015
Revenues from the Lifestyle/Hospitality Market Segment • In 2015 Los Angeles County Economic Development Corporation (LAEDC) conducted a study of the economic impact of the Hospitality Industry on L.A. County. • Visitors spent $4.3B on lodging and $4.5B on food and beverages. • Per the Los Angeles Tourism Board, Los Angeles County visitors spent $21.9B in 2016, which is 6.3% increase and $1.3B more than 2015. • Revenues and number of visitors are expected to grow on an upward trend for the next couple of years.
Revenues from the Lifestyle/Fashion Market Segment • According to 2015 research report from CIT Group & California Fashion Association, the fashion industry generated $18 billion in revenue and employed 97,000 people in Southern California.
Trends Impacting the Lifestyle/Hospitality Market Segment 1.
Co-Everything
2.
Good Design Goes Mainstream
3.
Experience Beyond the Hotel
4.
Concepts of Loyalty Need to
5.
Hospitality Will Rediscover Its Roots
6.
“LOCAL” Will Regain Its Meaning
7.
Luxury That’s Leaner & Smarter
8.
The Smart Hotel Emerges
9.
Expect Even More Brands to Emerge, Both New & Familiar
10. Data Interpretation is the Ultimate Intelligence SOURCE: Skift Research: 10 Hotel Trends That Will Shape Guest Experience in 2017
Strengths
SWOT Analysis for Hospitality Market Segment
• Revenue Growth • Increase # of Domestic & Intl. Visitors
Opportunities • Technology • Design
Weakness • Development Issues • Talent Management
Threats • Minimum Wage Increases • Low Unemployment Rate
Trends Impacting the Lifestyle/Fashion Market Segment 1. Intensifying Volatility 2. China's Comeback? 3. Urban Engines
4. Shrewder Shoppers 5. Generation Correlation 6. The Wellness Dividend
7. Changing the System 8. Organic Growth 9. Upstream Technology
10. Ownership Shake-Up SOURCE: Business of Fashion & McKinsey & Company, The State of Fashion 2017
Strengths
SWOT Analysis for Fashion Market Segment
• Creative Class Talent • Port of LA & LB
Opportunities • Technology in Design • Growing Make It In LA Movement
Weakness • High Cost of Living & Doing Business in LA • Volatile Industry Trends
Threats • Increases to Minimum Wage • Savvy Shoppers • M&A Activity
Commercial Competitors
Strengths
SWOT Analysis for XYZ Company Entering the Lifestyle Market Segment
• Access to Talent • Years of Experience Doing Commercials
Opportunities • Fashion & Hospitality are experiencing strong sales growth so they are cash flush. • Forecasted to continue growth for next couple years.
Weakness • Minimal Lifestyle Market Segment Experience • Fashion & Hospitality are dependent on the health of the economy
Threats • Competitive Marketplace: Lots of Commercial Companies to Chose from in L.A. Metro area. • New Market Segment…Lots of Unknowns
Overall Lifestyle Market Development & Growth Strategies • Partnering Approach to the Branded Lifestyle Narrative Pitch • Exploring Partnerships with Hospitality and Fashion Professional Associations Hospitality: 1. CA Hotel & Lodging Association 2. CA Restaurant Association 3. LA Tourism Board Fashion: 1. California Fashion Association 2. Make It In LA 3. LA Fashion Week
Lifestyle Market Segment Goals Over Next 3 Years • Partner with 1-2 associations in Fashion and Hospitality by close of 2017. • Schedule and conduct 10-20 lifestyle pitches in 2nd/3rd Quarter 2017.
• Have 2-4 new Lifestyle clients by the end of 2017. • Grow the Lifestyle portion of the business by 15% by the end of 2018 and by an additional 20 by 2019.
Marketing Platforms & Vehicles
Website
Social Media Channels
Digital Marketing
Traditional Marcom
Sales Enablement Tools Marcom Collateral • Separate One Sheets for the Hospitality and Fashion Industries • Pitch Presentations for Both Industries Marketing Blitz Campaigns • Prospect List • One Sheet As Leave Behind with Business Cards • XYZ Company Cups, Pens & Treats Networking Participation: • Association Activities & Membership/Partnership • Targeting Fashion and Hospitality Industry Events