Critical Evaluation of Hugo Boss: Understanding Positioning and Marketing Mix

This report evaluates the positioning and marketing mix of Hugo Boss, a German luxury brand. It analyses the effectiveness of the marketing efforts and provides insights on using the marketing mix to reinforce positioning. The report discusses the STP analysis, segmentation, targeting, and positioning of the company. It also evaluates the 4 P's of marketing mix and the promotional mix used by the company. The report concludes with an analysis of the effectiveness of the marketing efforts.

Critical evaluation of
Hugo Boss

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Understanding the positioning of the Company..........................................................................1
Using the marketing mix P's in order to reinforce positioning....................................................3
Promotional Mix..........................................................................................................................6
Analysing the effectiveness of the Marketing efforts..................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a process which helps the organisation to promote its products effectively.
The main focus is to generate more revenues with the help of different strategies and approaches.
There are various opportunities on which the company can capitalise in the future to attain
maximum customer satisfaction. This report aims to analyse about understanding the business of
Hugo Boss (Wiedmann, and von Mettenheim, 2020). There are various techniques which the
organisation could use to promote their business. Hugo boss is a German luxury brand which
provides various essential products to the consumers. The company sells clothing accessories,
fragrances, and footwear to the customers. On the other hand, in this report there will be brief
discussion about the organisation purpose and aim towards the future. Along with that, there will
be discussion about the marketing mix. It is a plan which includes various components which
helps the organisation to establish an effective marketing plan. For further instance, in this report
there will be evaluation about different efforts which the organisation can implement in order to
achieve the goals and objectives.
MAIN BODY
Understanding the positioning of the Company
Positioning includes the standard which is set by the organisation to perform better in the
market. The organisation is to able to gain competitive advantage in the desired industry. By
positioning the organisation better Hugo boss is able to achieve the necessary goals and
objectives in the market (SOFICĂ, and Cosma, 2018). Hugo boss use the STP analysis to
perform better and evaluate the dynamic market conditions. There are various segments in which
the company can dominate and acquire a huge market share. They can attract the potential
customers in order to maximize the overall profits. STP analysis in relation to Hugo boss is
mentioned below:
Segmentation
This is the first stage in this framework the organisation can attract various potential
customers by studying the market conditions effectively. The company ranks the individual on
the basis of various sections. With the help of this model Hugo boss provide the products to the
consumers in an effective manner and achieve great results in the future. The division of the
segments is described below:
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 Demographics – This component includes the consumers selection on the basis of age,
gender, location etc. The organisation can sell products effectively to the consumers.
Hugo boss offer various products to the individuals which age around 18 to 45. It
includes fragrances, clothing and different other accessories (Wieland, 2018). The
organisation also use the website to promote the products effectively and attract new
individuals. They are bale to able to acquire a huge market share by doing the ethical
practices of business. With the changing market trends the organisation has to
successfully evaluate all the factors in an effective manner.
 Psycho graphics – It includes different reasons which is unique product which the
organisation is providing to the consumers. Hugo boss is a luxury brand which provide
the high quality products to the customers. They use the customer feedback to improve
the critical aspects of their organisation. They had also maintained a good relationship
with different individuals in the market.
 Lifestyle Traits – This particular segment included the needs and wants of the consumer
in the market. Hugo boss is able to attain maximum customer stupefaction by maintaining
a healthy relationship with the consumers (Zimmerer, 2019). With the changing market
conditions the lifestyle and preferences of the consumers is also dynamic. The
organisation to fulfil the demands of the customers in an effective manner.
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Targeting
After the segmentation the organisation evaluate the dynamic market conditions and
provide the essential products to the consumers. The company improve certain aspects in which
they are lacking to achieve maximum customer satisfaction. This also helps them to improve
their brand integrity in the market (Pickton, Phillips, and Masterson, 2021). Hugo boss gives a
tough competition to other brands in the market. They use the systematic approaches to target
different potential customers in the market are described below:
 Size – The main aim of the organisation is to target new customer base in the market. It
helps them to generate more profitability and achieve greater results in the future. Most
of the customer will buy the products and services in the market.
 Profitability – Customer retention and integrity helps the organisation to evaluate the
profitability. Hugo boss has diversify their products in different segments. They
effectively evaluate all the factors of different segments to increase the overall
profitability.
 Reachability – Organisation needs to effectively communicate with the target audience
to achieve great results in the future. Hugo boss has establish various stores through
which the customer can buy different products and services effectively.
Positioning
The organisation needs to position themselves better in order to become more profitable
in the market. They need to build a positive relationship with the individuals to order to improve
the profits. Hugo boss is able to achieve sustainability in order to achieve the goals and
objectives effectively. The organisation also use the different techniques and approaches to
position their products better (Phau, Matthiesen, and Shimul, 2021). There are three crucial
components which is defined as symbolic positioning, functional positioning, and experimental
positioning. Hugo boss has established their business an diversify their products in different
sections. The organisation use the product positioning to provide the essential products to the
consumers. The organisation can position themselves in structured manner to capitalise on future
opportunities. They can also achieve different targets in the market.
Using the marketing mix P's in order to reinforce positioning
Marketing mix refers to the marketing tool which businesses use in order to promote their
business so that they can increase their brand awareness in the market. Multiple areas can be
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covered by marketing mix which includes 7 P's of marketing such as product, price, promotion,
place, people, packaging and positioning (Lona, 2021). Hugo boss also uses marketing mix in
order to engage their targeted audience by promoting their products and services. It assist
company in attracting large number of customers by conveying information and message to the
audience. It improves productivity and sale of an organisation which results in longer
sustainability in market. The 4 P's of marketing mix are discussed as follows:
Promotion: It refers to the medium of communication which act as an intermediate
between customers and marketers. Promotion is responsible in conveying the features and
relevant information of services and products to the targeted customer of company. Hugo boss
uses various medium in order to promote their business such as personal selling, direct
marketing, sponsorships, public relations and many more (Mansaray, 2019). It is essential to opt
for the correct method of promotion so that organisation can enjoy higher profitability. Effective
promotion can easily influence the mind and behaviour of customers so that they can utilise the
product of particular company. It can create interest of customers which is essential for the
engagement of the customer.
Promotion is responsible for creating and attract the loyal customer base which generate
the sale of organisation. Hugo boss uses various inline and offline mediums to promote their
products so that they can highlight their positive features in front of the targeted customers. It
assist company in maintaining healthy relationship with their respective customers with the help
of communication. Huggo boss can easily achieve their targets with the help of effective
promotional strategies.
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Product: It is the tangible and intangible goods and services which targeted customers
utilise according to their preferences. Organisations use various raw materials and other
equipments in order to manufacture and produce higher quality of products. Hugo boss offer
variety of products including footwear, clothes, accessories and fragrances for their audience.
They analyse the demand of their customers so that they can retain them for longer period of
time which results in higher profitability (Lindfors, 2018). Their products are famous for the
high quality which are preferred by most of the people of society. They use advanced technology
for designing and manufacturing of products so that they can add creativity in their products.
Innovative ideas help Hugo boss in offering unique collection which attract large number of
customers.
It is evaluated that product becomes the source of income for customers which satisfy the
requirements of customers. Hugo boss aims to maintain standard and quality of their products
which is essential factor for the establishment of brand image. They uses surveys so that
identification of demands can easily recorded for the manufacturing and designing process.
Place: This is one of the most crucial factor which helps the organisation to improve their
profitability in the market. Hugo boss has set up their stores in different regions. They provide
the products effectively to the consumers in an effective manner. There are various distribution
channels through which they are able to offer new and unique products to the customers in
accordance to their needs and wants (Lim, 2021). Hugo boss evaluate different strategies to
achieve great results in the market and provide better products to the consumers. The individuals
which are present in the market wants the products according to the needs and wants.
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It has been analysed that Hugo boos choose the location to open their stores in different
market regions. This will probably help them to improvise the sales and achieve different targets
in a systematic manner. The management takes the effective decisions and involve different
individuals.
People: This is also the important component in the marketing mix. The management
checks the performance of the employees which provide the essential services to the consumers.
The management can provide the right training and development to te employees in order to
improve their productivity. This will be beneficial for the company they can improve the sales in
the market. The management needs to supervise all the important aspects of the business. The
leaders of Hugo boss can develop an effective relationship with the employees to offer excellent
services to the consumers. Hugo boss understand the requirements of the consumers and provide
the essential products.
Price: The consumers pay the adequate amount of the products if the product fulfil the
needs and desires of the consumer. Hugo boss price is the essential factor which helps them to
attract various individuals. The organisation provides the products at an affordable prices. With
the help of digital infrastructure they cut the price in line of production. This also helps the
organisation to gain a competitive advantage in the market (Heine, and et.al 2018). On the other
hand, they are enriching the lives of the customers with the quality products and services. Hugo
boos ensures that they are targeting every individual in the market. The organisation has build a
healthy relationship with the customers. Through, this they had maintained a positive brand
integrity in the industry. The organisation generally focus on delivering the right products to the
consumer at an effective price.
It has been analysed that the organisation needs to set the competitive prices to attract
different customers in the market. Hugo boss is also using the approaches and methods to
improve the profitability of the organisation. Most of the products of Hugo boss can be
purchased by the consumers due to effective prices. The organisation has managed to achieve a
sustainable performance by capitalising on different opportunities. They are giving tough
competition to different competitors which are present in the market.
Promotional Mix
The organisation implement various strategies and approaches to attract new potential
customers in the market. They can achieve the goals and objectives in the desired industry
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effectively. The organisation can generate more revenues and maintain a positive brand integrity
in the market. With the help of promotion tools the organisation can make the effective presence
which is required to generate more profits in the market. Promotional Mix helps Hugo boss to
achieve an effective performance and provide better quality products to the consumers. There are
different tools which is used by the Hugo boss which is described below:
 Advertising – The organisation can successfully advertise their products in the market to
attract new potential customers. With the changing market trends the company has to
implement new strategies and approaches to acquire a huge customer share in the market.
The social media platforms which includes Instagram and Facebook helps the
organisation to attract new customers (Fuxman, and et.al., 2022). On the other hand, the
organisation can easily do banding of their products in the market. Hugo boss use the
innovative techniques to attract the young audience. They indulge in various campaigns
with the influencers to improve the overall sales of the brand.
 Social media marketing – The organisation promote the product in the market with the
help of social media marketing. There are different platforms which included Instagram,
Facebook for social media advertising. It engages different customers and the company
can acquire a huge share in the market. Hugo boss has developed a healthy relationship
with the consumers. They attract them with the help of different influencers. Social media
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marketing involves all the videos and visuals which are necessary to promote the
products and services. The company is also doing different campaigns which helps them
to improvise the sales in the market.
 Personal Selling – The organisation hires the candidates to sell the products to the
consumers face to face. The management needs to recruit the right candidate for the sales
job. It takes a lot of efforts for the individual to sell the products to the consumers in the
market. The skills could help the individual to sell the products effectively to the
consumers (Fotiadis, Mombeuil, and Valek, 2018). The employees can also promote
the company products and help them to increase the profits. Hugo boss is an established
brand the organisation use the techniques and approaches to promote the products. There
are various individuals in the market which sell the products to the consumers directly at
their door step. Personal selling also increase the demand of the products in the market
and the organisation can achieve their targets in a systematic manner. Market demand of
the products is also increased and the company can tell the people about unique selling
proposition of the products and services.
Analysing the effectiveness of the Marketing efforts
The organisation needs to measure its effectiveness this will help them to improve
various aspects and become more profitable in the market. The management needs to use
different tools and methods to evaluate every important aspect effectively. Hugo boss use the key
performance indicators to measure the overall performance. It helps the organisation in
formulation different decisions and plans in a systematic manner. The marketing strategies could
also help the company to achieve a sustainable performance in the market. With the help of
market revenue attribution the company can possibly evaluate all the campaigns in this new
digital world. The organisation use this method to analyse the data of the stakeholders to become
more profitable in the market and achieve great results in the future. Hugo boss is also using
various other methods which helps the organisation to evaluate the sales which is carried forward
for a span of time. The organisation has also establish the digital infrastructure in the workplace.
This helps them to improvise the productivity. There are different programs which include the
software and technology (Brown, 2020). There are different costs which is also known as
customer acquisition cost. Hugo boss is evaluating all the major factor which includes the
lifespan of the customers. The company is acquiring new customers with the help of ethical
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practices. They are attaining a high level of customer retention in the market. The organisation
has managed to establish a healthy relationship with the consumers. This will help them to
improvise the sales and profits is also increased in a significant manner.
Social media platforms helps Hugo boss to attract new potential customers from the
market. The company involves different consumers while doing various campaigns. Most of the
individuals feels interested and comment on the videos and pictures. This helps the organisation
to maintain a positive brand integrity in the market (Bellingrodt Escovar, 2020) . The
organisation has understand the needs and wants of the customers and provide quality products
to attain maximum customer satisfaction. With the help of quantitative performances the
organisation can easily evaluate the likes and comments of the individual. There are various
other improvements which the organisation could implement to achieve profitability in the
market. The main Vision of Hugo boss is to improve the quality of the products to achieve
increased customer satisfaction. The management works with the individuals in an effective
manner and forms various coordinated strategies to achieve targets in the market. There are
various barriers which the company could eliminate in order to become more profitable in the
market. Decisions is also easily formulated and the organisation could effectively provides the
products to the consumer.
CONCLUSION
From the above report, it has concluded that marketing helps the organisation to attract
new potential customers in the market. The company could also generate the revenues in an
effective manner. They use the marketing mix and promotional mix it is a tool which helps the
organisation to promote the products in a significant manner. On the other hand, in this report
there is brief discussion about the use of social media websites which can help the organisation
to indulge in different campaigns and promote the products to generate more profits in the
market. Along with that, there is discussion about the STP analysis which helps the company to
function better. Through this they can analyse the market conditions effectively and provide
quality products to the consumers. For further instance, in this report there is evaluation about
various tools which could help them to measure the performance. The organisation can capitalise
on various opportunities in the future.
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REFERENCES
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plan. In The Emerald Handbook of Entrepreneurship in Tourism, Travel and
Hospitality. Emerald Publishing Limited.
Fuxman, and et.al., 2022. The new 3Ps of sustainability marketing: The case of
fashion. Sustainable Production and Consumption.
Heine, and et.al 2018. Personality-driven luxury brand management. Journal of Brand
Management, 25(5), pp.474-487.
Lim, W.M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing, 29(5), pp.453-469.
Lindfors, I., 2018. Marketing strategies for a non-profit organisation.
Lona, J., 2021. Digital marketing management key drivers.
Mansaray, H.E., 2019. Relating Marketing and Corporate Strategy-An Overview.
Phau, I., Matthiesen, I.M. and Shimul, A.S., 2021. Is HUGO still the BOSS? Investigating the
reciprocal effects of brand extensions on brand personality of luxury
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Pickton, D., Phillips, N. and Masterson, R., 2021. Marketing: An introduction. Marketing, pp.1-
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Wiedmann, K.P. and von Mettenheim, W., 2020. Attractiveness, trustworthiness and expertise–
social influencers’ winning formula?. Journal of Product & Brand Management.
Wieland, J., 2018. SME Marketing mix standardization in the B2B market. Journal of
Management Policy and Practice, 19(1), pp.45-55.
Zimmerer, D., 2019. Equity valuation of Hugo Boss AG(Doctoral dissertation).
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