Luxury Brand management and International Events 1

Luxury Brand Management and International Events

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 Luxury Brand management and International Events 2

Executive summary

Luxury brand management is a complex process. Celine is a luxury goods manufacturer

headquartered in Paris, France. It is a popular brand and deals with a variety of products ranging

from handbags, leather accessories, shoe, and sunglasses. The brand analysis has been able to

detail various variables about the brand such as brand personality, brand identity, and brand

image. Based on the SWOT analysis, the brand has many advantages and disadvantages in the

industry. It has to cosine this variable to remain successful. In this regard, the recommended

strategy will involve brand extension and product differentiation. The proposal for the

international event will entail a fashion event to popularize the brand and support its growth.

There are a variety of critical success factors that have to be considered. The brand is faced with

a range of issues within the industry, and these can be with through the success factors.
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Introduction

Celine is a popular brand worldwide. It is a luxury brand dealing with womens outfit and

shoes. The brand had its origins in 1945 when it was created by its founders. It has evolved over

the years. The brand deals with luxurious goods ranging from leather accessories, handbags,

jewelry, sunglasses, and shoes. LVMH owns the brand. The parent company has provided

sufficient capital for the stores, guaranteeing that they produce high-quality products. It is also

essential for the visualization of the stores. The brand success do not just rely on the customers

feelings for the product (Chevalier & Mazzalovo, 2012). It also relies on its public image and

marketing of the designer. The designers personality should resonate with the consumers of the

brand. There should be a perfect balance between family and career. The brand is one of the top

brands in luxury goods in the international market. However, brand management and carrying

out an internal event with ensuring that the brand maintains its position.

Brand analysis

The brand is quite popular worldwide. The brand personality is primarily mature and

elegant. These are the goals of the company and brand. The brand is characterized by a touch of

Paris that is ever-present worldwide. In this regard the brand represents the ultimate French

elegance, reflecting the charm and moderation. The brand is identified as a popular luxury good

manufacturer (Wang, 2015). It is well known worldwide, and its products represent the Parisian

mantra of producing quality products.

The brand as a product is based on several categories. It deals with lady goods such as

leather wallets and handbags. It also makes shoes, ladies ready-to-wear and accessories. These

include sunglasses and jewelry. The brand also acts as an image. It shows a pure and minimal

aesthetic. The brand does not have a logo, but has remained quite popular worldwide. The
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companys broad heritage and high-quality products have allowed the company to build a

reputation. This has allowed it distinguish its products and build the companys reputation. The

product is unique and timeless icons (Atwal & Bryson, 2015). They are comfortable to wear and

have attributes that are Parisian but are global in nature. The companys minimal brand image

has made it distinctive from other companies.

SWOT Analysis

Strengths

The brand is a successful lifestyle product. It offers a variety of products in this segment

including eyewear, perfumes, footwear, and attire. This has been essential in leveraging its

profitability. The company also has been in operation for many years. It has a strong presence in

various luxury markets and is quite popular for people who want to purchase luxury goods. It

also runs more than 150 wholly owned points of sale in the main cities worldwide. The concept

used in selling the products from the brand have a unique theme. Each store looks different from

another, and this gives the brand a unique identity (Sharp, 2010). The company also has a strong

reputation and brand worldwide. It has also established an effective advertising and branding

strategy through television and print advertising.

Weaknesses

The company is facing fierce competition within the industry from luxury goods

manufacturers such as Christian Dior and Gucci. This has limited its market share growth. The

company also faces an issue with replicas, especially from China. The fluctuations in the

exchange rate are also an important issue (O'Reilly & Kerrigan, 2013). This has led to the loss of

revenue for the brand.

Opportunities
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The brand has an opportunity to expand in emerging markets. These are regions where

the demand for luxury goods is flourishing, and could be quite beneficial as a market for the

company. Countries in Africa and India are good markets to begin operations. The brand has

also begun to focus on green initiatives. This has gained popularity among people. The brand can

also begin using online retailing (Sharp, 2010). More people are using the internet, and some

people prefer making purchases online. This will be quite effective for the brand.

Threat

Many new designers have begun introducing new luxurious products. This is a significant

threat to the brand as people begin to seek alternative brands. The recent global financial

slowdown was a major issue that led to a steep decline in the luxury market. The brand has also

faced criticism by the fashion fraternity due to its reliance on anorexic models (Chevalier &

Mazzalovo, 2012).

Recommended strategy

Brands often grow through product development. This is regarding both category and line

extensions. It will also entail market development regarding new geographic markets and new

channels.

Brand extension and new products

The first strategy will involve a brand extension. The success of the extension relies on

consumers perception of the brand, in particular between the parent brand and the new brand.

Any brand association is based on the potential of the new product. Positively viewed symbolic

associations will be based on the extension evaluations. Since the original brand is known for

high quality, introducing a new product will still attract the market. Consumers are also aware of

the parent company, and they will have a favorable response as the brand begins to develop.
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The strategy will also entail product differentiation (Granitz & Forman, 2015). This means that

the corporation should innovate and make a product instead of imitating the existing strategies

and products. Celine should develop a niche in an already crowded market. The company is

facing competition from many businesses in the luxury goods business. It is important that it

keeps the international fashion followers in mind. For instance, the Japanese brand Eisu began to

create jeans from an old fashioned fabric to remain competitive in a saturated jeans market. The

jeans became quite popular in Japan, and it has been sought by many people the world over. This

design choice gave the wearer a unique fit, and this is something that most people look for when

they purchase a luxury goods. They want to be unique, and it also becomes their identity.

The company should learn how to give more value to designers and be willing to take

more risks to facilitate the development of a unique design concept and niche branding.

Furthermore, the designers should benefit from the inspiration ad unique resources provided by

the local environment while taking care to meet the international and domestic demands.

Business managers have to avoid the mindset that a designer is exclusively instrumental. When

the company achieves this mindset, then the brand can be competitive with international and

regional brands (Kapferer, 2015). Furthermore, Paris is a market with many luxury brands.

Maintaining competitiveness can be difficult.

Despite this, developing the companys global sourcing, brand and ability is not sufficient

in producing a local fashion industry that becomes popular worldwide. It is essential to use the

resources in the country to propagate the development of a more profitable organization. The

strategy will rely on resources availed to the designers that are essential in fashion development.

This includes trade shows, geographic proximity to markets, fashion trends and inventory.

Fashion capitals such as London, Paris and New York provide designers with different
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experiences that act as an inspiration for their collections. Since fashion trend sand forecasting

can be accessed easily from international sources online, it is essential that the company be a

leader in current trends in the industry (Atwal & Bryson, 2015).

International event to support growth

A fashion show is an effective international event to support the luxury brand growth.

This is an avenue to allow various stakeholders in the industry such as designers and buyers to

attend the show, and Celine can showcase its products. This is an avenue that Celine should

finance and allow the development of professional talent. The brand can encourage the

participation of fashion designers, and this could be an opportunity to access new talent. This

will allow the brand to build the skills of the new generation. This will ensure that the luxury

DNA is transmitted to the younger craftsmen (Granitz & Forman, 2015). For instance, a Young

Fashion Designers competition should include participants from all countries worldwide. The

company can gain immensely as these designers will come up with luxury designs that fit their

specific markets. The winning designers can then be nurtured for a year so that they produce

luxury goods that concur with the brands image.

Organizing these events during the buying season is imperative. Many fashion buyers are

willing to travel abroad to buy products. The brand can gain from the fashion shows, and it is an

opportunity to build the brand. Many people often consider the luxury brand as more powerful,

even though it earns less revenue. Luxury brands tend to be popular as they are always in

magazines, fashion shows, and television. Sometimes, this is free advertising for the brand, and it

can popularize the event (Chevalier & Mazzalovo, 2012). You can say that the number of

marketing executives in most companies is more in comparison to the total number of marketing

executives in the luxury sector. Luxury brands such as Celine has a worldwide presence. The
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brand often awes shoppers with its extravagant and iconic luxury stores that reinforce the brands

image in the mind of consumers. Through the fashion shows, it will create a rising awareness

about the brand, allowing it to grow in the process.

Critical success factors

Luxury brand management is faced with a myriad of issues. Every brand manager tends

to support the view that the brand is unique and different from any other. Furthermore, those that

manage luxury brands are justified to make such a claim such a broad differentiation in their

brands and businesses (Sharp, 2010). Luxury brands such as Celine end to enjoy high brand

awareness. This is in the form on top of the mind awareness and aided awareness.

The need for partners

This is an important issue for luxury companies as they seek to grow. It is a critical

success factor. New markets are unfamiliar territory. Companies require partners in retaining,

interpreting the market and even manufacturing. This is the case for Celine, considering that the

company is dealing with a large market. As many companies have experienced, partnerships just

like licensing agreements are worry free in familiar markets. This can evolve into something like

a strategic partnership in new markets (Wang, 2015). The issue for companies in finding partners

in new markets is not how to manage them, but rather an issue is how to talk about them.

Companies may be nervous to admit that a luxury product is produced in China or even India.

This can be limiting to their reputation. Some businesses do provide high-quality products in

China, but they hide this fact.

A suitable investment partner is essential to the success of a company. Celine has

immense capital investments, and it has not been difficult for the brand to form partnerships.

However, the company should be cautious about the success of a partnership. An important issue
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is how to find partners who are empathetic and sympathetic enough to allow the parent company

to flourish (Chevalier & Mazzalovo, 2012). Few luxury brands will remain happy if they are

overtaken big brand owning businesses.

Need for adaptation

New markets are different markets. This means that the company has to adopt. This is a

unique challenge for a luxury brand. Many companies often believe that the need for adaptation

of the brand message is not as great as it first appears. The brand values should be similar in

different markets, even though these markets have different attributes and characteristics.

Essentially, the way the brand feels should be consistent. In this regard, adaptation in a new

market is about interpretation and not the brand fundamentals. The interpretations themes can

differ slightly in different markets, but the attention and values should be similar. The

management cost of maintaining the brand image across markets should not be underestimated.

The customer should understand the nature of the brand (Chevalier & Mazzalovo, 2012). This

will ensure that the customers understand what the brand is all about, and they will be attracted

by the products.

In conclusion, Celine is a famous luxury brand. It is well known around the world and

has years of experience under its belt. However, it is facing many issues such as competition

from other luxury brands. The recommended strategy can apply to help the company grow. The

brand should introduce new producing in the market, and ensure there are differentiated.

Furthermore, an international event, such as a fashion show, can be beneficial in supporting the

luxury brand growth. This will increase awareness of the brand, and will assist it to capture a

new market. Many critical success factors are integral to the growth of the brand. This is

essential for the brand to develop and to retain its position as a traditional luxury goods maker.
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References

Atwal, G., & Bryson, D. (2015). With luxury brands expanding their horizons to reach new

markets and sustain themselves there, we explore 5 key issues and trends that are

changing the business of luxury - See more at

http://www.luxuryfacts.com/index.php/pages/article/4346#sthash.36a9d. Retrieved April

1, 2016, from http://www.luxuryfacts.com/index.php/pages/article/4346

Chevalier, M., & Mazzalovo, G. (2012). Luxury brand management: a world of privilege.

Hoboken: John Wiley & Sons.

Granitz, N., & Forman, H. (2015). Building self-brand connections: Exploring brand stories

through a transmedia perspective. Journal of Brand Management, 22(1), 38-59.

Kapferer, J.-N. (2015). The luxury growth challenge: how to grow yet remain rare. London:

KoganPage.

O'Reilly, D., & Kerrigan, F. (2013). A view to a brand: introducing the film brandscape.

European Journal of Marketing, 47(5/6), 769-789.

Sharp, B. (2010). How big brands grow: what marketers don't know. South Melbourne, Vic.:

Oxford University Press.

Wang, T. (2015). The Value of Luxury Brand Names in the Fashion Industry. CMC Senior

Theses.
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