MBA(I), Username: usharm
Trying to understand the concept “of what does company do to attract customers and maintain a stable relationship with them”, and moving into the depth of the subject I come across another concept within the concept of marketing.
As I moved along, taking instance of a freelance designer to a brand competing against the luxurious brand such as Dolce & Gabbana, and his marketing strategy to survive the completion.
Georgio Armani was successful enough to understand the demand for the lifestyle and attitude of the people’s demand towards such product, segmented his customers for his product spreading awareness, and involving the expertise and luxury brand attributed people within the segment. Segmenting the customers on basis of psychology, the company capitalized over his relationship with the media stars and Hollywood over the years, starting back in 1980 film American Gigolo. Targeting high-class customers, providing luxurious-high quality goods and exclusive design and style, the company further expanded its product lines including fashion accessories, swimwear, cosmetics, fragrances, jewelry, eyewear, and even mobiles understanding the behavior of the users towards luxurious lifestyle further segmenting his product on basis of the behavioral changes of the customer and evolving his design to meet the demand. Armani’s management, played an important role understanding the expansion of it’s market among the international market, and segmented its customers on basis of the variance of lifestyle on basis of different geographical living standards of the high-end customers, giving them a vison of expanding other new lines and their brand of jeans under the brand name “Emporio Armani” under several new enterprises beyond jeans and boutique dresses.
Subcategorizing the new line of product as per the various new enterprises, which includes Junior Armani, Armani Jeans, Armani/Prive, and many more, the company positioned its product as per the demand of his segments within the segmented customers across the globe. The company positioned its segmented product for the segmented customers as per the perception of the quality desired and priced the product accordingly. The company was just right enough to segment its product using one to one marketing marketing strategies to different segment of customers, keeping in mind, the reflection of the company’s image i.e. symbol of luxury and VIP lifestyle”. The company not only segmented his market ranging from boutique shop design to home interiors, and positioned his range of products, the company was successful enough to dig through and place its product under the 4 p’s of the marketing tool, i.e. price, place, product and promotion competing against brands like Gucci, Paul Smith, Guess, Channel, Prada, etc. The company expanded its target market, i.e; high-end customers which includes Hollywood stars to high income business man, with its USP of high-quality exclusive designed and styled products reflecting luxury by segmenting its different line of products under various enterprises.
Thus, providing a deep down knowledge of the basic yet unique concept of market segment where customers who have similar likes and characteristics are grouped together, on basis of their needs, lifestyles, demographics helps to decide the target market, and further helps sub-categorize the target market to attain more customers of within the targeted market.
The company’s strategist used the depth strategy of segmentation, i.e., served one segment, to its maximum which not only helped them grow its chain across the globe but also helped the company position its range of products within themselves and among the other luxurious brands.
Thus to understand the marketing concept, understanding the marketing segmentation, i.e categorizing its customers, also your target market, on basis of your products positioning among its customers, to its depth plays an important role and the company like Armani exploited the strategy to its optimum and maintained its head in a market which changes everyday capitalizing over niche market accounting to 2.4$ billions.
Slideshare.net. (2016). Giorgio Armani. [online] Available at: http://www.slideshare.net/raj_qn3/giorgio-armani-11353493 [Accessed 8 Aug. 2016].
Referenceforbusiness.com. (2016). Giorgio Armani S.p.A. – Company Profile, Information, Business Description, History, Background Information on Giorgio Armani S.p.A.. [online] Available at: http://www.referenceforbusiness.com/history2/36/Giorgio-Armani-S-p-A.html [Accessed 8 Aug. 2016].
Investopedia. (2005). Marketing Definition | Investopedia. [online] Available at: http://www.investopedia.com/terms/m/marketing.asp [Accessed 8 Aug. 2016].
Consumerpsychologist.com. (2016). Segmentation, Targeting, and Positioning–Consumer Behavior. [online] Available at: http://www.consumerpsychologist.com/cb_Segmentation.html [Accessed 8 Aug. 2016].
Slideshare.net. (2016). A R Meps E 2010. [online] Available at: http://www.slideshare.net/Safilolatinamerica/a-r-meps-e-2010 [Accessed 8 Aug. 2016].
Pinterest. (2016). Database Error. [online] Available at: https://au.pinterest.com/pin/95771929549810282/ [Accessed 8 Aug. 2016].