Armani Marketing Analysis: New Product Launch Strategy for Mobile Accessories

This report analyses the internal environment of Armani along with marketing environment of the company. It also highlights the new product of the company and the new product of the firm and the target market that company aims to target with this product. Marketing strategy used by the company has been showcased in the form of marketing mix.

MARKETING

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Executive Summary
This report analyses the internal environment of Armani along with marketing environment
of the company. It is found that Design and quality has been their strength while weaker
supply chain is their problem. Report shows that the external environment of the company is
changing and the company will have to make strategies for sustainable business in this
environment. It also highlights the new product of the company and the new product of the
firm and the target market that company aims to target with this product. Marketing strategy
used by the company has been showcased in the form of marketing mix. It is suggested that
company brings mobile accessories as it is becoming a trend in the fashion. Company must
choose platforms such as online mediums so as to sale these products and the pricing of the
company must be set to be as premium.

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Contents
INTRODUCTION.....................................................................................................................................3
Marketing environment analysis............................................................................................................3
SWOT analysis......................................................................................................................................5
New product and target market..............................................................................................................7
Marketing strategy.................................................................................................................................8
Conclusion.............................................................................................................................................9
REFERENCES......................................................................................................................................9

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INTRODUCTION
In the current business environment, different organisations are facing different types of
challenges. In such an environment it has become essential for the firms to known their
internal resources of the company along with capabilities they have so as make strategies
accordingly. It is also essential that company analyses its marketing environment according
to which they will improve their marketing strategies. It is very much crucial for the company
to design their new products as per the target market they have defined for themselves.
Armani is an Italian Luxury fashion house established by Giorgio Armani (Apparel
Resources, 2019). It deals in the business of manufacturing, designing, distribution and retail
of ready-to-wear, Shoes, Jewellery, Haute couture, cosmetics, accessories, home interiors,
eyewear, leather goods and watches. They level their products under different labels: Armani
Collezioni, Armani Jeans, Giorgio Armani Prive, Armani exchange, Giorgio Armani and
Armani Junior. In the year 2016, company sold products worth $2.65 billion and overall
revenue was accounted to be €2.90 billion. It is headquartered in Milan Italy. This company
has business in different parts of the world. For internationalisation they are giving their
stores on franchising.
Marketing environment analysis
In the modern day changing business environment, it has become essential for the firms to
manage their operations. In marketing, it is crucial to analyse the factors that are affecting its
environment. This plays an essential role in development of the marketing strategies
(Stankeviciute and Hoffmann, 2010). Each and every aspect of the business is being
evaluated so as to understand the impact of the company on the environment. Some of the
factors that are affecting their marketing environment are analysed below:
 Political: Political relations all across the globe have changed and this change in the
global business environment has affected the marketing environment of the industry.
Governments are strengthening the consumer related laws so as to protect the rights of
the people. This has affected the ways in which companies are doing their marketing
(The Strait Times, 2017). New political relationships among different countries have
elevated the chances of company to enter into the new markets by the help of export
and import. Decisions such as Brexit will have an influence on the marketing done by

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the company. The increased taxation on the luxury products is a challenge for the
firm. In most of the countries the taxation on the luxury products are on the higher
side. This is reducing the number of target segment for the company.
 Economic: Many countries in the European region are facing challenges related to
economy. Although the revenue of Armani has risen in the last few years still
companies will have to be very watchful in doing investments. There is a decrease in
the numbers of trade barriers hence it has become easier for the companies to market
its products in different markets. In this process, company can take use of their cash
reserves (Potvin, 2012). Since innovation is the base of success in the fashion industry
hence company will have to raise funds in developing and marketing new products.
The labour cost has also increased which is directly affecting the costing of the
company. The poor performance of the American market has further reduced the
scope of the company to generate higher revenues.
 Social: Society has changed significantly and so are their demands. In such an
environment, it has become crucial for the organisations to market their products
according to this changing demand of the market. Fashion industry is highly
influenced by the society demands. Armani is one of such companies that start the
trend in the fashion industry. People are demanding for the apparels that are unique.
Due to increased unemployment and reducing per capita income both purchasing
power and purchasing behaviour of the people has changed (Potvin, 2017). The trend
for costly product is increasing and hence it is going to benefit the company.
 Technological: In the era of technological business, it has become crucial for Armani
to build its business that is highly supported by the technological means. 90 % of the
marketing must be done on the social media and other digital platforms. This is
essential as these platforms are accessed by large numbers of people and reaching to
large numbers of people through this platform is easy. In the sales also, company must
be focused towards selling more products with the help of digital mediums. This is
necessary as the people’s purchasing behaviour has also changed and at the same time
people are spending a lot of their on these platforms hence it is easy to target them at
these places.
 Legal: The legal environment for marketing in the fashion industry is very supporting.
The legalities have changed in support of fashion as there are many barriers from the
side of the countries on import and export of products. The fashion industry is also
bounded in terms of the products they are using in their products such as in the leather

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department as in some countries people have cultural values towards using the
products made of leather. This is the major reason why the legalities have
strengthened in these areas.
 Environmental: With the change in the environment in different parts of the world,
governments are forcing the companies to manage the waste that is generated in their
operations (Zargani, 2017). Due to the changing global climate there is a severe effect
on the production of raw materials within the firm. Armani will have to add new
suppliers so as to ensure that there is easy availability of the raw materials for their
business.
 Competition: The competition in the industry has growth to much exceeding limit.
This high amount of competition has forced companies to make sure that they have
high quality products and they are according to the expectations of the workers
(Potvin, 2010). In the European region, this competition is further on higher side.
There are many local companies that are emerging in the developing markets that is
affecting the market share of the company. The tradition substitutes and the new
mixture of traditional and western products have reduced the scope of the company to
grow.
SWOT analysis
In order to understand the internal environment of Armani, SWOT can be one of the best
tools. SWOT analysis of Armani is as follows:
Strengths
 Their products are having a unique design and are sold in throughout the world with
the same design.
 Company has a bigger brand name that allows them to set the premium pricing of
their products and still achieving the higher sales.
 Quality of products and services and customer’s comfort is on the higher side. This
has helped them in creating a huge customer base.
Weakness

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 The cost structure of Armani is on the higher side and hence its expansion in the
developing nations with higher numbers of middle class families has been slow.
 Company lags a successor who can lead the company in the future (Amaldoss and
Jain, 2010).
 Weaker supply chain when compared its competitors like Zara.
Opportunities
 There are large numbers of opportunities available with the firm in the developing
markets especially in the Asian region as the numbers of higher salaried people are
increasing in these markets. There are large numbers of youngster living in the Asian
region and this increase in the numbers will help the company in generating higher
sales (Business Insider, 2018).
 Company has an opportunity to improve their online business as it is the future of the
fashion and retail industry. This can be done with the help of their website and
company can also take the help of e-retailers so as improve their sales chances. Tie-
ups with the partners such as Amazon will help the firm in reaching to maximum
possible customers.
 Armani also has scope in some other kind of business that is somewhat linked with
the fashion industry for example, in the mobile accessories and sports products
industry. Company should also think about expanding their business in the home
decoration segment.
Threats
 The competition in the Industry has grown to cut-throat level in premium fashion
industry also. This has reduced the market share of the company.
 There are many types of substitute products that are also available in market hence the
sale of the company is at stake. Since lots of innovations are going on in the industry
hence it is providing an edge to even small companies to reach out in the market with
new design and quality.
 There are many companies that are providing the high quality products at the lower
cost. In the current economic environment, these products are highly demanded by the
companies.
 There are many fake products that exist in the markets as the products are available at
lower rates. This is seriously affecting the sales of the company as these pirated

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products are using the brand image of the company so as to sale the products
(Mititelu, Fiorani and Mariani, 2014).
 Degrading climate conditions are affecting the production of the raw materials which
will be going to have impact on the business operations and relationship with long
time partners.
New product and target market
Armani deals in the business of many products and the new product for the company would
be Mobile accessories. This will be a range of product that contains products such as mobile
covers, earphones. The mobile products and its related accessories are also a part of fashion
industry in the today’s time. People carry these products throughout the day hence it is a
favourable industry in which company can enter into. The mobile accessories will be
fashionable and it musts be according to the trends that are present in the market. Since
people are using luxurious products in their day to day life hence company will have a huge
target market for which company can do their business. These accessories will have the tag
name of Armani which will make them valuable and the people that love luxurious products
will get attracted by this product. In the development of ear-phones they can take the help of
some small or big manufacturers of mobile accessories and they can themselves put their tag
name and the design so as to succeed in the market. This will create a new kind of market for
the company and hence they can easily improve their sales.
Since the mobile accessories are being used by every segment in the society hence company
can target a huge market. The mobile accessories will be of higher cost hence the major
segment that company will target upon will be the young people that are from the higher
section of the society. The targeted market segment of the company consists of people from
the age group 15-50 years. They are launching their products for the market segment that
loves luxury products. Company aims to target people in the urban region that are rich. In the
segmentation they are highly focused towards the people that are more curious about new
trends and follow each and every update on the industry.
Marketing strategy
There are many marketing strategy that can be used by the company for selling their new
products. These strategies must be designed based on the external and internal analysis that is
done by the firm (Stankeviciute, 2012). Since this company heavily relies on the word of

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mouth marketing and its brand image hence this company is not using heavy marketing
campaigns so as to do marketing. Marketing strategy that can be used by the company is
elaborated below:
 Product: The product of the company that they want to come with is mobile
accessories that are trendy. This product will be a perfect combination of fashion and
technology. The mobile covers and the earphones are the two major things that
company wants to bring in their market. These products are available in different
designs, shapes and colours that suit the attires they are wearing.
 Pricing: Since Armani has a brand name hence it is essential for the company to make
sure that they use premium prices for their products. This is because the reduction of
the premium prices will reduce the brand image of the firm. This will be an effective
strategy in attracting people that they have targeted (Bof, 2019). In the premium
segment also company needs to set prices that are competitive and will help the
company in attracting people.
 Place: For selling the products company will take use of both traditional and online
mediums. The major focus of the company should be on selling products through their
own websites and other e-retail websites (Financial Times, 2017). Partnership with
the big companies such as Amazon could help the company in selling their products
in different parts of the world.
 Promotions: There are many traditional marketing strategies that are used by Armani.
Company needs to focus on the digital media strategies for doing marketing. This will
help them in improving their market base and at the same time it will help the
company to reach to larger numbers of people as compared to traditional market
segment. In spreading the news about Armani’s new product the role of digital media
will be very much crucial (Ehlers, 2017). Company must take use of social media
strategies for taking feedbacks and spreading the news about company entering into
new segment. Armani can launch these products with the help of marketing
campaigns such as Fashion Show. Company can present these products in the fashion
shows such as Milan Fashion week so that it can reach to people very easily and
would help in creating buzz in the market. This will also help the company in
promoting their diversity. In the countries where the company aims to expand their
product they can take use of such fashion shows for their promotions. This can also be

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in terms of cause market where they promote their products checking the needs of the
particular market segment.
Conclusion
From the above based report it can be concluded that Armani is one of the biggest fashion
brands in the world. Company has a big brand image and their designs are unique. Their
weaknesses include weaker supply chain when compared with competitors such as Zara.
They have huge opportunities in the Asian market as the numbers of target market which
company aims to deliver products for is also large. The increasing completion in the market is
a threat for the company. There is change in policies of the government that might support
Armani. Economic crisis and social changes have affected the sales of the company. This
company aims to launch the products related to mobile accessories. This will be available at
premium prices so as to maintain their brand image. Digital marketing strategies will be the
best for the company for doing its promotions. Company must take use of online mediums for
selling their products.

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REFERENCES
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Potvin, J., 2017. Giorgio Armani: Empire of the senses. Routledge.

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