Muskan Versace Marketing-project.docx

PROJECT REPORT OF THE STUDY ON THE MARKETING MIX OF VERSACE WITH RESPECT TO MUMBAI. Submitted by SOHEL RANASARIYA Roll no. 33 Under the guidance of Prof. Ansari Naseem Ahmad Designation: Faculty Department: Bachelors of management studies K.H.M.W. College Submitted in partial fulfillment of

MUMBAI UNIVERSITY K.H.M.W. COLLEGE OF COMMERCE BACHELORS OF MANAGEMENT STUDIES, JOGESHWARI (WEST) MUMBAI 2018 – 2019

DECLARATION

I, Mr. SOHEL RANASARIYA, of K.H.M.W. College of Commerce & Management of TYBMS [Semester VI] hereby declare that I have completed my project, titled “Study of financial statement Toyota India with respect to Mumbai.” In the Academic Year 2018-2019. The information submitted herein is true and original to the best of my knowledge.

_________________ Signature of Student [SOHEL RANASARIYA]

CERTIFICATE

This is to certify that, SOHEL RANASARIYA, Student of K.H.M.W. COLLEGE OF COMMERCE AND MANAGEMENT has completed this project. The title

“Study of financial statement Toyota India with respect to

Mumbai.” as a part of T.Y.B.M.S course 2018-19 has collected the required information to reliable sources. This project is complete and fit for submission.

___________________

_______________________

Signature of the Principal

Signature of Project Guide & Internal Examiner

_______________ (External Examiner)

_______________________ (BMS Co- Ordinator)

ACKNOWLEDGEMENT

I would like to thank the University of Mumbai, for introducing the BMS course, there by giving its students a platform to keep abreast with the changing business scenario, with the help of theory as a base and practical as a solution.

This project would have been incomplete without the endless support and guidance of Professor ANSARI NASEEM AHMAD, my project guide.

I would also like to express my sincere gratitude towards our respected Principal MR. AZIZ SHAIKH.

My friends who have been a great source of inspiration throughout the making of this project, their support is deeply acknowledged.

SOHEL RANASARIYA

TABLE OF CONTENTS

EXECUTIVE SUMMARY .......................................................................................6 OBJECTIVES ............................................................................................................7 RESEARCH METHODOLOGY...............................................................................8 INTRODUCTION .....................................................................................................9 MARKETING.........................................................................................................9 MARKETING MIX ..............................................................................................11 VERSACE ............................................................................................................12 THE 4 P’S OF MARKETING MIX ..........................................................................20 4 P’S IN VERSACE ..................................................................................................29 SWOT ANALYSIS..................................................................................................38 DATA TABULATION AND ANALYSIS .............................................................40 CONCLUSION ........................................................................................................47 RECOMMENDATIONS .........................................................................................50 ANNEXURE ............................................................................................................51 BIBLIOGRAPHY ....................................................................................................53

EXECUTIVE SUMMARY

This term paper is a study of Marketing Mix strategies adopted by Versace. It is significant in the following aspects:  Identify the Marketing Mix of the products of VERSACE  Impact of the sale of products of VERSACE  Identify the Drawbacks and scope of Improvements.  Measure the level of satisfaction from the competitors Therefore, to fulfill the objectives of this paper, intensive research was done. First, a thorough analysis of the concept of marketing management was done to understand the concept in detail, so as to draw better conclusions. Secondly, an analysis of the Marketing Mix Strategies in the market was done, to get a gist of the general trend of strategies adopted by various organisations in the market. Thirdly, a detailed study of the history of Versace was taken up, including both the past and the present. Most important of all, a thorough research of the Marketing Mix strategies adopted by the Company, Versace was carried out. A research that included both primary and secondary sources through different books, magazines, websites and questionnaire. Furthermore, the impacts of Marketing mix strategies on the effectiveness and efficiency of the organisation was studied. How such strategies were related to the said objectives aimed by the Top Level Management

of Versace. A survey was undertaken where questionnaires were filled by their customers. The results from the said survey were carefully analysed. After inferring conclusions from the analysis, recommendations were made.

OBJECTIVES  Identify the Marketing Mix of the products of VERSACE  Impact of the sale of products of VERSACE  Identify the Drawbacks and scope of Improvements.  Measure the level of satisfaction from the competitors

RESEARCH METHODOLOGY

SUBJECT- Marketing Management TOPIC – The study of the marketing mix of VERSACE The method of research opted by me in this synopsis was doctrinal research from both primary and secondary sources. A plan was developed how to collect the required information i.e. whom to contact for gathering the relevant data. Data is the foundation of all research .It is the raw material for any research functions. Therefore, it requires great care to select the sources of data. Data or facts may be obtained from several sources. Data sources can either be primary or secondary.

 The primary data is collected through questionnaire  The secondary data is collected through books, magazines, newspaper and websites. The secondary data seeks to examine the findings of research groups and prominent market experts with regard to the performance of Parle and its managers in the market. The research analysts paid immense attention to the growth of the company as a whole but an emphasis on the competitive strategies was hard to find. Thus the author had to put in his own analyses of the functions of the manager and their impact.

INTRODUCTION

MARKETING Marketing is based on thinking about the terms of customer needs and their satisfaction. Marketing is the performance of business activities which direct the

flow of products from the producer to the user. In other words, marketing has less to

do

with

getting

customers

to pay

for

your

product

as

does developing a demand for that product and fulfilling the customer's needs. “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”1 - American Marketing Association, Board of Directors “The science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.” -Philip Kotler “Marketing is the combination of messages and programs (the 4 P’s– product/packaging, price, placement and promotion) that drive shoppers to choose your product or service over someone else’s.” - Charlene Samples, Director of Marketing, Heartland Sweeteners “Marketing understands your buyers really, really well. Then creating valuable products, services, and information especially for them to help solve their problems.”

1

https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx

it

- David Meerman Scott, Bestselling author of Real-Time Marketing and PR

“Marketing is influencing behavior to get more people to buy more stuff, more often, for more money.” -Mark W. Schaefer, Author of the Tao of Twitter

While the definitions of marketing vary based on perspective, they generally refer to engaging a target market of consumers or other users to ultimately sell a product and hopefully to maintain a relationship beyond the purchase.

MARKETING MIX

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements. All the elements of the marketing mix influence each other. They make up the business plan for a company and handled right, can give it great success. But handled wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others.2

2

http://economictimes.indiatimes.com/definition/marketing-mix

VERSACE

Versace, a unique Italian fashion house was started by an Italian clothier, Gianni Versace in 1978. After the death of Gianni Versace, his sister, Ms. Donatella Versace stepped in as the Creative Director at Versace and his elder brother Santo; Versace became its Chief Executive Officer. Today it is known globally as one of the most luxurious and stylish labels in the fashion industry. Its casual clothing line focuses on informal clothing: high-end denim and classic Gianni Versace print shirts. Its latest collection of Designer’s menswear consists of everything from faded and distressed jeans to tight-fitting shirts and professional suits. The lines are created and produced via other designer companies, which are in constant communication with the Versace Group. These clothing incorporate elements of the signature

Gianni Versace line,

while

focusing on current

seasonal

trends. This label offers an exclusive combination of rugged and professional attire to suit the needs of a wider range of men. Whether you’re a high profile businessman or a trendy teenager wishing to enhance their physical appearance, there’s a place in the Versace label for you.3 Versace Collection is aimed at a younger audience, with varied economic demographics. Men and women enjoy the diversity within the label and are fascinated by the incredible styles and designs in each line. Globally, Versace competes with brands such as Armani, Fendi and Tommy Hilfiger and is considered one of the higher-end labels in the industry which translates into higher selling prices for their elegant designs. A sweat shirt could cost approximately $400 and sweaters anywhere from $300.This line is distributed through 56

3

www.versace.com/en/history#

boutiques and flagship stores, and 1800 multi-brand points of sale, including Internet-based shops across the globe. Fashion trends in India are seen to be progressively influenced

by the

Western

styles of clothing and other fashion accessories, leading to a high growth for the Indian market in the upcoming years. In fact, it has been observed in recent years that the fashion industry has started showcasing its work a tramp shows such as Indian Fashion Week to promote Indian hauteur couture. Typically, the Indian luxury consumer can be classified as: • Urbane • High disposable income • Well qualified • Knowledgeable and aware of luxury market • Widely traveled. With the Government promoting Foreign Direct Investment (FDI) in Single Brand retail, thisUS$ 72 Billion (in terms of sales) Versace Group has entered the Indian market, with a distribution tie-up with Pall Mall, a Delhi-based menswear retailer. It has already begun retailing Versace Sports' casual trousers, T-shirts and jackets which are priced between Rs 5,000 and Rs 15,000. Recognizing that the luxury sportswear market in India is minuscule, the company does not expect big volumes from the Versace Sports range yet. With Versace Sports, the Italian company is testing the domestic market with other products in their range

The menswear market in India has immense potential since there are a few strong brands in relation to the potential the country has. There is a dearth in organized manufacturing and also washing and dyeing of the fabric Eventually, companies with a long term philosophy and focus on quality would have great future both in the domestic as well as in the international markets. With new investments forthcoming in shirting fabrics manufacturing by the companies like Raymond, Monti, Hemmerle and others, the International Brands have lined up quality suppliers and with the availability from these mills, it is possible to satisfy the emerging trend in the fashion market. Today, Versace is worn by the elite and the biggest stars in Hollywood. From plunging necklines, to bold prints, and structured design, when Versace is worn the world knows. Versace has secured its spot as a family owned business that has taken innovation to the next level, going so far as to collaborate with Lamborghini and high rise apartments. For a company that has been around for 33 years, they never cease to excite, amaze, and keep the world talking.4

Gianni

Versace

S.r.l. (Italian

pronunciation: [ˈdʒanni

verˈsaːtʃe])[a] usually

referred to simply as Versace, is an Italian luxuryfashion company and trade name founded by Gianni Versace in 1978. The main collection of the brand is Versace, which

produces

upmarket

Italian-made ready-to-wear and leather accessories,

while other diffusion lines are Versace Collection (mainly in the US), Versus 4

www.fashion.org

Versace and Versace Jeans. The Versace logo is the head of Medusa, a Greek mythological figure. The logo came from the floor of ruins in the area of Reggio Calabria that the Versace siblings played in as children. Gianni Versace chose Medusa as the logo because she made people fall in love with her and they had no way back. He hoped his company would have the same effect on people. The Versace brand is known for its innovative designs having symbolic flashy prints and bright colors.[6][7][8] The company announced in 2018 that it would stop using fur in its collections.[9] On 25 September 2018, Michael Kors announced their intention to acquire all outstanding shares in Gianni Versace S.r.l. for $2.12 billion (USD);[10] the acquisition was completed on December 31, 2018 In 1972, Gianni Versace designed his first collections for Callaghan, Genny, and Complice. In 1978, the company launched under the name "Gianni Versace Donna."[12] The first Versace boutique was opened in Milan's Via della Spigain 1978.[13][14] Versace was one of the few independent designers who was in control of everything about the brand, from designing to retailing.[6] In 1982, the company expanded into the accessory, jewelry, home furnishing, and china industries.[15] In 1993, Donatella Versace created the "Young Versace" line as well as "Versus."[12] In 1994, the brand gained widespread international coverage due to the black Versace dress of Elizabeth Hurley, referred to at the time as "that dress".[7][16][17] Versace was often described as the "Rock n' Roll designer" because they designed for many famous clients, including Elton John and Michael Jackson. Versace designed the stage costumes and album cover costumes for Elton John in 1992. Versace has also designed clothing for the Princess of Wales and Princess Caroline of Monaco. The Versace company is known for using the same models in their ads as they do on the runway.[15]

After the murder of Gianni Versace in 1997, his sister Donatella Versace, formerly vice-president, took over as creative director and his older brother Santo Versace became CEO.[18] Donatella's daughter Allegra Versace was left a 50 percent stake in the company, which she assumed control of on her eighteenth birthday.[19][20][21] In 2000, the "green Versace dress" worn by Jennifer Lopez at the 42nd Annual Grammy Awards gained a lot of media attention, being voted as the "fifth most iconic dress of all time" in 2008, with Hurley's 1994 dress being voted first in a Daily Telegraph poll.[17] The company's profits were in decline in the early 2000s;[19][22] Fabio Massimo Cacciatori was hired as interim CEO to reorganise and restructure the Versace Group in 2003.[23] Cacciatori resigned in December 2003 due to "disputes with the Versace family".[23] From 2004 Giancarlo di Risio, from IT Holding, was CEO of the group until his resignation in 2009 due to disagreements with Donatella.[24][25][26] In May 2016, the Versace Group appointed Mr. Jonathan Akeroyd to the position of CEO and member of the company’s Board of Directors. [27] In February 2014 The Blackstone Group purchased a 20 percent stake in Versace for €210 million.[28][29][30] As of 2016, more than 1500 boutiques operate worldwide; the first boutique outside of Italy was opened in Glasgow, Scotland in 1991.[31] On 24 September 2018 Michael Kors announced that it offered a deal to buy Versace for 2 billion euros.[32][33] In September of 2018 Versace announced that one hundred percent of all Blackstone and Versace family shares had been sold to the Group Michael Kors Limited. [34]

In October 2018, Versace announced to showcase the brand’s first ever Pre-Fall season show in New York on 2 December. The show is scheduled on Gianni Versace’s birth date.[35] In January 2019, Gianni Versace S.r.l. joined Capri Holdings Limited, forming a new global fashion luxury group together with Michael Kors and Jimmy Choo.[36] Collaborations[edit] In 2006, Gianni Versace S.r.l. entered into a partnership with Automobile Lamborghini S.r.l. to produce the Lamborghini Murciélago LP640 VERSACE. The car had a Versace white satin interior with the Versace logo embroidered into the seats. The car was available in black and white. There were only ten units produced. The car was sold with a complementary luggage set, luxury driving shoes, and driving gloves.[37]

The Versace boutique in Milan, Italy The Versace company teamed up with AgustaWestland in 2008 to create the AgustaWestland AW109 Grand Versace VIP luxury helicopter. The helicopter includes Versace leather interior and a design on the outside.[38][39] In 2011, Versace and H&M released a new line of clothing that would be sold in H&M stores. The store sold both men's and women's clothing and home items such as pillows and blankets.[40]

In 2015, Versace collaborated with dancer Lil Buck to release a line of sneakers.[41] In 2018, Ronnie Fieg and Donatella Versace debuted their Kith x Versace collection, which featured a modified medusa logo with "KITH" written over its eyes.[42] Versace Men's Fall 2019 collection featured several items with the logo of Ford Motor Company. According to the fashion house, the two companies joined forces to channel "the excitement of buying your first car. Excitement and aspiration of owning something as an extension of one’s personality, something very connected to the idea of being a man."[43] Partnerships[edit] Versace partnered with the Mind Group firm in China in 2015. The two companies designed luxury residence towers called the "Versace Residencies." The goal of the creators were to combine Versace's luxury home elements with elements of traditional Chinese culture.[44] This same year, Versace partnered with the ABIL Group in India to develop another residential project. These luxury homes are located in South Mumbai.[45] In

2015, Donatella

Tisci's Givenchy campaign.[46]

Versace was

featured

in Riccardo

5th Avenue, New York City, 2013 Palazzo Versace[edit] Soheil Abedian, of the Sunland Group, approached Versace in 1997 and successfully proposed a luxury hotel built upon the Versace brand; the first Palazzo Versace opened on Australia's Gold Coast on 15 September 2000.[47][48] The hotel was sold to a Chinese consortium in December 2012.[49][50] The second Palazzo, the Palazzo Versace Dubai, was completed in December 2015 and is located on the foreshore of Dubai Creek.[51] A third Palazzo is under construction. The Palazzo Versace Macau was announced in 2013 and will be built in partnership with Macau's largest casino operator SJM Holdings.[52][53][54] The Palazzo Versace hotels are the first fashion-branded hotels in the world and place an emphasis on beauty and luxury

THE 4 P’S OF MARKETING MIX

1. PRODUCT MIX A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods. You must ensure to have the right type of product that is in demand for your market. So during the product development phase, the marketer must do an extensive research on the life cycle of the product that they are creating. A product has a certain life cycle that includes the growth phase, the maturity phase, and the sales decline phase. It is important for marketers to reinvent their products to stimulate more demand once it reaches the sales decline phase.

Marketers must also create the right product mix. It may be wise to expand your current product mix by diversifying and increasing the depth of your product line. All in all, marketers must ask themselves the question “what can I do to offer a better product to this group of people than my competitors”.5 In developing the right product, you have to answer the following questions: 

What does the client want from the service or product?



What features must the product have to meet the client’s needs?



Are there any necessary features that you missed out?



What’s the name of the product?



Does it have a catchy name?



What are the sizes or colors available?



How is the product different from the products of your competitors? 

What does the

product look like?

5

https://www.boundless.com/marketing

2. PRICE MIX The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition. It is also a very important component of a marketing plan as it determines your firm’s profit and survival. Adjusting the price of the product has a big impact on the entire marketing strategy as well as greatly affecting the sales and demand of the product. This is inherently a touchy area though. If a company is new to the market and has not made a name for them yet, it is unlikely that your target market will be willing to pay a high price. Although they may be willing in the future to hand over large sums of money, it is inevitably harder to get them to do so during the birth of a business. Pricing always help shape the perception of your product in consumers eyes. Always remember that a low price usually means an inferior good in the consumer’s eyes as they compare your good to a competitor.

Consequently, prices too high will make the costs outweigh the benefits in customer’s eyes, and they will therefore value their money over your product. Be sure to examine competitors pricing and price accordingly.6 When setting the product price, marketers should consider the perceived value that the product offers. There are three major pricing strategies, and these are: 

Market penetration pricing



Market skimming pricing



Loss Leader pricing



Differential Pricing

Here are some of the important questions that you should ask yourself when you are setting the product price: 

How much did it cost you to produce the product?



What is the customers’ perceived product value?



Do you think that the slight price decrease could significantly increase your market share?



Can the current price of the product keep up with the price of the product’s competitors?

6

www.marketingmix.co.uk

3. PLACE MIX Placement or distribution is a very important part of the product mix definition. This comes with a deep understanding of your target market. Understand them inside out and you will discover the most efficient positioning and distribution channels that directly speak with your market. There are many distribution strategies, including: 

Intensive distribution



Exclusive distribution



Selective distribution7

There are some of the questions that you should answer in developing your distribution strategy:

7

Marketing Mangament, Planning, Implementation & Control, V S Ramaswamy & S Namakumari



Where do your clients look for your service or product?



What kind of stores do potential clients go to? Do they shop in a mall, in a regular brick and mortar store, in the supermarket, or online?



How do you access the different distribution channels?



How is your distribution strategy different from your competitors?



Do you need a strong sales force?



Do you need to attend trade fairs?



Do you need to sell in an online store?

4. PROMOTION MIX

Promotion is a very important component of marketing as it can boost brand recognition and sales. Promotion is comprised of various elements like: 

Sales Organization



Public Relations



Advertising 

Sales Promotion

Advertising typically covers communication methods that are paid for like television advertisements, radio commercials, print media, and internet advertisements. In contemporary times, there seems to be a shift in focus offline to the online world. Public relations, on the other hand, are communications that are typically not paid for. This includes press releases, exhibitions, sponsorship deals, seminars, conferences, and events. Word of mouth is also a type of product promotion. Word of mouth is an informal communication about the benefits of the product by satisfied customers and ordinary individuals. The sales staff plays a very important role in public relations and word of mouth. It is important to not take this literally. Word of mouth can also circulate on the internet. Harnessed effectively and it has the potential to be one of the most valuable assets you have in boosting your profits online. An extremely good

example of this is online social media and managing a firm’s online social media presence.8 In creating an effective product promotion strategy, you need to answer the following questions:

8



How can you send marketing messages to your potential buyers?



When is the best time to promote your product?



Will you reach your potential audience and buyers through television ads?



Is it best to use the social media in promoting the product?



What is the promotion strategy of your competitors?

www.marketingmix.co.uk

4 P’S IN VERSACE

PRODUCT MIX The first stage in building an effective mix is to understand the market. VERSACE uses market research to target key market segments which identifies groups of people with the same characteristics such as age/gender/attitude/lifestyle. The knowledge and understanding from the research helps in the development of new products . VERSACE carries out its market research with consumers in a number of different ways. These include: 

using focus groups to listen to consumers directly



gathering data from consumers through a variety of different research techniques



Product testing with consumers in different markets.

VERSACE has many key market segments which include Men’s Accessories, Women’s Accessories, Boys and Girls Accessories, Sunglasses, Watches, Jewellery, Fragrances and Palazzo Bags. In Men’s Accessories, VERSACE deals in:  Shirts, T-shirts, jackets & coats  Pants and Jeans  Sweatshirts  Formal Suits  Formal Shoes including Lace ups, Monkstraps, driving shoes, Moccassins, Loafers, Sandals, Sneakers and Palazzo Sneakers

 Leather Belts  Foulards and Scarves  Ties and Silk Accessories  Fashion Jewellery including Cufflinks, tie bars, earrings, bracelets, rings and bracelets.  Watches  Sunglasses  Palazzo Accessories includes bags and shoes. In Women’s Accessories, VERSACE deals in:  Dresses  Shirts and tops  T-shirts and Sweatshirts  Knitwear and Skirts  Pants and Jeans  Jacket and coats  Lingerie and Beachwear  Small Accessories includes Wallets and small leather goods, key chains.  Foulards and Scarves  Fashion Jewellery includes Necklaces, Rings, Earrings and Bracelets  Watches  Sunglasses  Special Palazzo bags By looking at the products of VERSACE, we can infer that VERSACE has a wide range of accessories for both Men and Women.

Versace’s online website delivers the product with a solid packaging. They use a neutral box to save the product from robbery. The order will be wrapped in white tissue paper or packed in a Versace garment bag or special Versace paper boxes. Accessories and shoes, foulards and ties will all be boxed while your handbag will be delivered in a Versace fabric bag for protection.9 Versace Online Store is the official and direct operated online distributor for Versace products featured on this website and we unconditionally guarantee that every item we sell is 100% authentic. Versace and Versus Versace Ready To Wear, Shoes & Bags, Small Leather Goods and Accessories have an additional authenticity certification called Certilogo in order to guarantee you always and everywhere an authentic and original Versace product. Please note that this certification is a part of the product and can be attached to it or separately accompanying the product. In case of returns and reclamation it is obligatory to return the product with its specific certification label/card and a product can be returned back within 30 days of purchase.

VERSACE PRODUCT TIMELINE  Versace was among the first to revive the cat suit, bring back the mini skirt, use bright neon colors, show tights worn as trousers and bring back the bustier and bead it.  In 1982, Versace broke the mould when they revealed the metal mesh dresses for the first time.

9

http://us.versace.com/help-faq/faq,en_US,pg.html#versace-faq

 In 1983, the hit TV-show Miami Vice introduced there brightly colored jackets to a much wider audience.10  In 2014, Versace CEO, Gian Giacomo Ferraris gave a statement that the company is mainly focusing on products MADE IN ITALY, as products made in Italy has the maximum sales.11

PRICE MIX Pricing is a major element of marketing any product, and it is vitally important to set the right price. A price that is too high or too low for the target market can seriously affect sales. Elements such as target market, profit margin needed growth strategy for the company and market share all play a role in what pricing strategy is used. Premium pricing can use for several purposes. VERSACE uses Skimming pricing strategies for its product. Skimming pricing strategy means to skim the cream off the top of the market by setting a high price and selling to those customers who are less price sensitive. Skimming is a strategy used to pursue the objective of profit margin maximization.12 The pricing strategy for the new brand proposition will go in line with current diversification strategy Versace adopts, however most products will still be premium-priced to maintain an aspirational image of the brand. The target clientele will be consumers with a large percentage of disposable income, but the possible price skimming strategy (charging a higher price for newly released collections and reducing prices as the trend becomes more mainstream) will attract more priceconscious consumers as well. 10

http://www.made-in-italy.com/italian-fashion/designers-and-brands/versace Vogue Magazine, November,2014 edition. 12 http://www.netmba.com/marketing/pricing/ 11

VERSACE also uses Competitive pricing strategy keeping in mind its competitors like Dolce & Gabbana, Armani, Prada and Gucci. The target customer for VERSACE is the upper-upper and upper middle class as well as high end customers. In fact, the higher price point helps in the price quality approach and psychologically, customers think that a higher price will mean better quality as well. Thus, VERSACE rarely drops its prices. Different prices of VERSACE products:  A suit cost around 1900 pounds  A shirt costs from 700 to 1100 pounds  Men and Women watches cost from 1200 to 2500 pounds  Sunglasses costs from 100 to 160 pounds.  Palazzo bags costs from 700 to 1400 pounds.  A women’s dress costs from 600 to 6000 pounds  T-shirts and tops costs from 500 to 900 pounds. These high prices show us that VERSACE products are made for rich and wealthy section of the society.

PLACE MIX The major areas in which Adidas is sold is through retail outlets. Adidas has its own exclusive stores in which the material is provided directly from the company. On the other hand VERSACE sell its products through its online website. Thus the distribution channel of VERSACE is as follows  Manufacturing > VERSACE outlets > End customer

 Manufacturing > Distributor > Multi brand showrooms

 Manufacturing >

online fashion website/VERSACE website > End

customer

VERSACE follows a selective distribution strategy to sell its products. Selective distribution strategy involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best performing outlets and focus

effort on them.13 In the case of Versace, they have a limited number of outlets in a city as compared to other brands. For example, Versace has three or four outlets in the whole of Mumbai, this makes Versace follow Selective distribution strategy. VERSACE is very unique and one of the things that make it a stand out brand is the fact that it is a vertically integrated retailer. What this means is that it designs, manufactures and distributes the products itself. This approach seems to be working for it because it has managed to establish itself as one of the leading Italian fashion stores globally. VERSACE is present in over 30 different countries including India and its expansion is ongoing. Therefore, you will soon be seeing more VERSACE stores in more countries. In fact, 90% of VERSACE stores are owned by the company and the rest are joint ventures of franchises. This means that customers experience the same environment when entering one of the VERSACE stores is it they are in London, Rome, New York, Paris, Rio de Janeiro, New Delhi and Mumbai the stores are spacious, well-lit, modern and predominantly whiter and walled with mirrors. VERSACE has around 90 boutiques and 400 outlets. Most people say VERSACE’s real strength lies in its culture, something that can never be replaced for anything.

It is unbelievable but the fact is VERSACE comes out with at least 300 or more new designs per month. This, coupled with the brand name VERSACE enjoys, helps to price their products according to their will and wish, as new trends tend to be a bit costly.

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PROMOTION MIX Promotion is the most important part of a company. In the 21st century, with the introduction of new kind of Medias, companies have invested most of their time and money in promoting their products. VERSACE over years have used different promotional strategies to attract customers and a large market segment. In the 1980’s and 90’s, Gianni Versace was one of the first Italian designers to hire world-class photographers, such as Richard Avedon, Bruce Weber and Steven Meisel, to shoot his advertising campaigns. He also employed the top modeling talent of the time, turning girls like Linda Evangelista, Naomi Campbell, Claudia Schiffer, Yasmeen Ghauri, Christy Turlington, Stephanie Seymour, Cindy Crawford, Helena Christensen and Kate Moss into "supermodels" and global celebrities. VERSACE earliest clients were Phil Collins, Bruce Springsteen, George Michael, Eric Clapton, Elton John and Michael Jackson, among many other artists. They also made clothes for the Princess of Wales and Princess Caroline of Monaco. These designers, models and clients helped VERSACE to promote their products to other people in the society during the 80’s and 90’s. Top actresses and singers, from Jennifer Lopez to Beyonce and Penelope Cruz, keep choosing the maison's flamboyant style for award ceremonies and gala appearances. The company has a long history of fostering its image by courting global celebrities. Many other stars, such as Madonna, Britney Spears, Christina

Aguilera and Demi Moore, have endorsed the brand in exchange for free clothing allowances and multi-million dollar contracts. Versace is looking to reach young, tech-savvy consumers with their latest digital marketing campaign promoting the new Versus product launch. Versace’s focus has been on creating a full digital experience surrounding the Versus line. This strategy incorporates social media marketing, a new website, and an online store experience. The digital campaign was designed to raise awareness and to hype up the launch of their new collection on May 15th in New York. Looking to target a younger consumer audience, their social media strategy includes Facebook, Twitter, Instagram and Google+ profiles for Versus. Versace is encouraging consumers to join their Versus community and they plan to provide fans and followers with behind-the-scenes looks at the creative process and the design concepting for the new collection. Versace does communicate in masses. Usually Internet and magazine, ads on fashion website and magazines like Vogue and GQ as their channel. They have not yet starting promoting through television advertisements. Versace offers customers with seasonal sales twice a year, this sale is notified and a personal invitation is given before the sale start, so to maintain the exclusivity of the brand.

YEAR

TOTAL REVENUE (in millions)

2015

10.9 Euros

2016

15 Euros

2017

21 Euros

2018

41 Euros

The above tabular representation of revenues tells us that promotion strategy used by VERSACE after 2009 crises helped them to increase the revenues over years and made it a 6 million Euro company. Their commitment is clearly visible in the attention they pay to each and every detail of their showrooms. The elegance with which the windows are laid out and the way the shop attendants are groomed, everything is worked out according to a plan that is very precise. Every store manager has free access to talk to their counterparts at Italy regarding the marketing and improvement strategies. Small and regular product shipments are designed to keep the inventory scarce and fresh; compelling customers to buy urgently and frequently visit the store to check what is new. Bar coding, online shopping and computer, aided purchases are all measures designed to increase sales and make it a global brand.

SWOT ANALYSIS

STRENGTHS  

Exclusive , Breathtaking and Intricate collection They have about 82 boutiques worldwide as well as their main headquarters in the fashion capital of the world that is Milan , Italy



Very well established brand image and recognized globally



High quality and original luxury goods



Their brands are worn and endorsed by all celebrities who enjoy looking both sexy and sophisticated



They have about 500 employees containing an expert team of designers and stylist



Product portfolio also includes perfumes, watches and even mobile phones

WEAKNESS  High price being charged for all products means limited target audience  Fake imitations or replicas affects brand image  Due to tough competition there is a high amount of brand switching OPPORTUNITIES  Online Retail and E-marketing are gaining large amount of importance  Demand for luxury goods is always rising as people love looking striking and sharp  Innovative and stylishly designed products THREATS

 Economic recession and downturn has an impact on purchasing power of individuals 

Other cheaper and lower brands trying to copy their classic designs and selling at much cheaper rate



There are many counterfeits available for the brand.

DATA TABULATION AND ANALYSIS

A survey for 40 people was conducted between the age group of 18- 25 years of the students of National law University, Jodhpur. The Survey is followed by an analysis. Q.1 Have you ever heard of Versace? If yes through what medium?

Medium

Percentage

Television

1%

Print Media

10%

Radio

1%

Internet

80%

Acquaintances and Relatives

6%

Never heard

2%

Analysis: 80% people have heard about Versace through Internet and 10 % through print media, this clearly shows that Versace has used Social Media and Print Media as their main medium of promoting. Versace has not yet started

promoting through Television that’s why only 1% people knew about it through television.

Q.2 Have you ever been to a Versace store or outlet?  Yes

 No

Q.2

48% 62%

YES NO

Analysis: 62% of the people who gave the survey have visited the store of Versace once in their lifetime. This means that Versace should open more outlets so that people could visit them without facing any problem.

Q.3 Have you ever purchased a product of Versace?  Yes

 No

Q.3 14% YES NO

86%

Analysis: 14% people have purchased the products of Versace which proves the point that Versace is a brand for high end users.

Q.4 Are you happy with the quality of the products made by Versace?  Yes

 No

Q.4 10% YES NO

90%

Analysis: 90% of the people were happy with the quality of the product they purchased; this means that they should force less on the quality rather than anything else.

Q.5 If yes, then how do you rate the quality of the products of Versace? RATING

PERCENTAGE

Excellent

82%

Very Good

10%

Good

4%

Fair

4%

Poor

-

Analysis: 82% of the people rated the product which they purchased as excellent and only 4% rated the product as fair and no one rated the product at poor. This should boost the morale of the company as their products is being liked by the customers

Q.6 Are you satisfied with the price of the product compared to the quality of the product?  Yes

 No

Q.6 20% YES

80%

NO

Analysis: Only 20% of the people were satisfied with the price when compared to quality of the product. This means that Versace should either increase the quality of the goods as to the prices or should reduce the prices as per the quality of the product.

Q.7 Do you think Versace should sell more products on one on basis rather than selling it online?  Yes

 No

Q.7 25%

YES 75%

NO

Analysis: 75% of the people believe that Versace should sell more of its product on one on one basis. One on one basis gives a customer an edge to see it personally and try it without waiting for the delivery to happen.

Q.8 Do you think Versace should advertise more on its product than it does?  Yes

 No

Q.8 48%

52%

YES NO

Analysis: 52% of the people thought that Versace should advertise more about its product. This percentage is not so much, so Versace does not need to advertise more for its products.

Q.9 Are you aware of the various offers made by Versace?  Yes

 No

Q.9 16% YES 84%

NO

Analysis: 84% of the people did not know about the offers that Versace provides their customers with. This is a positive point as Versace provides those offers to an exclusive gentry as the brand is an exclusive one.

5.6 SUGGESTIONS:1.

The Employer should pay salaries in advanced in Employee salary account.

2.

The employer should not leave their job without prior permission of the authority.

3.

Money matters, financial issue should be solved in proper manner.

4.

Employees are not a servant, but they won the part and parses of the company.

5.

The Government should control on all over corporate sectors in connection with financial

matter. 6.

The Employer should pay the one month incentives as a bonus to the Employees.

7.

Financial literacy should be motivated by the authority compulsory.

8.

The Enterprises or Company work should be run smoothly for that the man power

should be used as a pillar of the company.

LIMITATION OF THE PROJECT 1. 2. 3. 4. 5.

Time was limited with in a four month. Area coverage was limited, Mumbai andheri only. Data collection size was limited. Questionnaire was limited. Varsace are not famous among the middle income group, because of price.

CONCLUSION

An organisation enters a market with the aim of earning profits in the long run. No matter how efficient the organisation is, its success is still dependent on its products, how they price those products and promote them at different levels. VERSACE is a brand of clothing and other accessories range in the Italian market designed to attract high end users to purchase their products. As such, it has created a clear position in the market. This shows that VERSACE understands its consumers and has produced this differentiated product range in order to meet their needs. VERSACE has been one of those organisations that has continuously evolved and has placed great reliance on its Marketing Mix Strategy. The strategies so adopted have played a great role in helping VERSACE maintain its position in the market. Their main strength zones are that they have an exclusive and breathtaking collection and have a high quality and original luxury goods which make them stand a step ahead with their competitors. The main reason behind the success of VERSACE is its links and tie ups with different celebrities which give them an edge. However certain shortcomings are also there. The reason for this shortcoming is not solely the fault of VERSACE, but the exceptional strategies opted by its competitors. Further, there exist areas where VERSACE needs to work upon. Despite it having an elaborate advertising strategies, there exist areas where more advertising needs to be done like promoting their products through television advertisements.

RECOMMENDATIONS

This Term Paper is only a study of the Marketing Mix strategies adopted by VERSACE, and the efficacy of such strategies. This paper does not seek to make any recommendations. However to give finality to the paper following recommendations are being made to the organisation with due humility: 6. Versace should shift its focus from a fashion brand to a lifestyle brand. If the Versace brand goes too mainstream with its style it will lose both its distinct and relevant points of differentiation and its cache and desirability among the image oriented consumer targets for such expensive products. It's a fine line that must be carefully walked. 7. Versace should start promoting its product on television through advertisements as everyone these days have a T.V. and advertising through television will help the customers to know more about Versace and it will help them to increase their sales. 8. Versace does a great deal of social work in the name of Corporate Social Responsibility but none of it is made known to the general public. Therefore, what needs to be done is advertisement of such work which will yield in more customers. 9. Versace needs to advertise more of its products which are yielding it more profits and are more popular amongst the youth. For example,

Versace’s cologne range has a very good sale, so they should advertise this more so to increase profits.

ANNEXURE

QUESTIONNAIRE TO BE FILLED IN BY A CUSTOMER. NameGenderDesignationAge1. Have you ever heard of Versace? If yes through what medium?  Never heard  Radio relations

 Television  Internet

 print media  Acquaintances/other

 Others (please specify): _______ 2. Have you ever been to a Versace store or outlet?  Yes

 No 3. Have you ever purchased a product of Versace?

 Yes

 No 4. Are you happy with the quality of the products made by Versace?

 Yes

 No 5. If yes, then how do you rate the quality of the products of Versace?

 Excellent  Very Good

 Good  Fair

 Poor

6. Are you satisfied with the price of the product compared to the quality of the product?  Yes

 No 7. Do you think Versace should sell more products on one on basis rather than selling it online?

 Yes

 No

8. Do you think that Versace should advertise more on its product than it does?  Yes

 No 9. Are you aware of the various offers made by Versace?

 Yes

 No

BIBLIOGRAPHY

Treatises Marketing Mangament, Planning, Implementation & Control, V S Ramaswamy & S Namakumari ......................................................................................................14 Magazines

Vogue Magazine, November,2014 edition ..............................................................19 Weblinks http://economictimes.indiatimes.com/definition/marketing-mix ..............................7 http://www.netmba.com/marketing/pricing/ ............................................................19 http://www.slideshare.net/082011341/versace-fashion-brand-analyses-presentation ...............................................................................................................................25 https://www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx ..................6 https://www.boundless.com/marketing ...................................................................11 www.fashion.org ........................................................................................................9 www.marketingmix.co.uk ........................................................................................12 www.versace.com/en/history# ...................................................................................8 www.yourarticlelibrary.com ....................................................................................21 http://us.versace.com/help-faq/faq,en_US,pg.html#versace-faq ............................18 http://www.made-in-italy.com/italian-fashion/designers-and-brands/versace ........19