Ralph Lauren Marketing Strategy

This article discusses the marketing strategy of Ralph Lauren, including key marketing concepts and terminology applicable to the company. It explores the 7Ps of marketing and the STP (Segmentation, Targeting, Positioning) strategy used by Ralph Lauren. The article also examines the relationships between the marketing department and other departments within the company.

Ralph Lauren marketing strategy
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Table of contents
Introduction....................................................................................................................................2
First: key marketing concepts and terminology applicable to the Ralph Lauren
Corporation....................................................................................................................................3
Second: Ralph Lauren marketing strategies and programs required to achieve the
company objectives........................................................................................................................4
2.1 Planning a marketing strategy................................................................................................4
2.2 Marketing strategy content decisions.....................................................................................4
2.3 Ralph Lauren marketing strategy...........................................................................................5
Third: Ralph Lauren Corporation’s daily 7 Ps and STP..........................................................5
3.1 Ralph Lauren 7Ps...................................................................................................................5
3.2 Ralph Lauren STP..................................................................................................................6
Forth: Relationships of the marketing functions to other functional areas in organizations
in the Ralph Lauren Corporation................................................................................................7
Recommendations..........................................................................................................................7
Conclusions.....................................................................................................................................7
References.......................................................................................................................................8

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Introduction
People in many cases consider marketing to be only associated with advertisements and selling,
which is totally wrong. Marketing is a management discipline that confirms the product and
services compliance with people needs or exceeds them. Therefore, marketing performance takes
a central location within the organizational performance for its role in understanding the key
market trends, reaching customers with the right product and the right price at the right time.
Proper marketing enables organizations to get closer to customers, know their needs and fulfills
them. Getting closer to the customer has become a must, especially that the digital technology,
social media and people dependence on smartphones have interfered in all aspects of life
activities (CIM, 2015). Marketing describes the various contexts and functions that add value
through the process of exchanging products with prices between parties (Rahnama & Beiki,
2013).
The emerging markets have been attracting business activities from the advanced economies of
during the last three decades. This implies that the dominant marketing behavior is influenced by
emerging market firms marketing behavior. Also, consumer behavior in these markets is likely to
influence the development and marketing strategies of such organizations (Boso, et al., 2018).
Ralph Lauren is an iconic fashion brand rooted in the USA and succeeded in building a global
famous fashion brand since it was founded in 1967. This brand combines the American heritage,
eye for details and craftsmanship across its channels with stress on product quality that created
the unique identity for the company. The brand uses the classic designs to reflect the core value
and evolved in line with the emerging trends (Martin Roll, 2018; Ralph Lauren Corporation,
2019a)

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The following section analyzes the core marketing concepts with an application on Ralph
Lauren, its marketing strategy, application of the 7Ps and STP and the relationships that exist
between the marketing department and other departments within Ralph Lauren.

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First: key marketing concepts and terminology applicable to the Ralph Lauren
Corporation
Rahnama & Beiki (2013), argue that there are three concepts with a strong connection,
represented in product, market and marketer. The market refers to the arrangements that take
place between sellers and buyers in which the seller provides goods and services and the buyer
bays the price. Currently, the market is not limited to a specific location, buyers and sellers can
confirm the purchasing service over the phone, by email or online through the internet. The
product is the output of the manufacturing process that fulfills peoples' needs. The brand
represents the overall customer experience of differentiating products of competitors. The Ralph
Lauren Group currently markets for 17 brands of fashion and 4 brands of lifestyle across 30
countries and through 493 directly managed stores. Ralph Lauren' Polo shirt represents the oldest
brand among the other brands that include men and women wear, women’s jewelry and watches,
sportswear and children’s wear (Ralph Lauren Corporation, 2019b).
The marketer is the person who identifies the goods and services that fulfills the desires of a
group of customers and his role is to market these products on behalf of the organization he
works for. They are responsible for demand management through managing negative demand,
lack of demand, latent demand, full demand, declining demand and the declining demand. Ralph
Lauren capture exactly what consumers’ need from a luxury brand and apply these needs into
their delivered products (Rahnama & Beiki, 2013; Isabel & Kamila, 2010).
The marketing mission is defined within the broader organizational mission. The marketing mix
refers to the various tools that the organization uses to fulfill its objectives of marketing within
the targeted market. The traditional marketing mix consists of the 4 Ps of product, price, place

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and promotion. Marketing era considers to the target market, customer needs, integrated
marketing, and profitability. Its perspective comes from outside the organization, it starts with
defining the market characteristics, recognizing the customer needs and coordinate activities that
directly interest the users and satisfies their needs. The target market is the selected market which
is prepared for the organizational marketing programs. Customer needs refer to the requirements
set by the customer, he could be aware of them or he could miss the proper statement of them.
Integrated marketing refers to the collective activities among the organizational departments to
serve customer interests (Rahnama & Beiki, 2013). Ralph Lauren fashion brand portfolio
consists of seventeen brands in 2017. They are differentiated according to specific targeting
consumer segments. Ralph Lauren Purple Label was introduced to fulfill the customer needs of
men’s tuxedos, sportswear, and, suits. It includes Polo shirts fabricated from luxury two-ply
long-staple cotton. It is considered an upscale line that was launched in 1994. Despite its famous
luxury clothing brands, Ralph Lauren extended its business to other market segments, including
housing decorations, pet collectibles, fragrance and restaurants (Martin Roll, 2018).
Profitability is the ultimate objective of the marketing concept that helps organizations fulfill
their desired goals. Business organizations target profit maximization by creating distinctive
customer value. The marketing plan is the process of selecting the best-fit activities to determine
the actual marketing planning (Garoufallou, et al., 2013). Ralph Lauren profitability declined in
2016 by 10.2% compared to 2015, the matter that reflects poor performance with -1.5% profit
margin despite the company efforts to enhance the sales volume by offering deep discounts
primarily in North America. The lost sales are due to delays in shipments and e-commerce. In
June 2016, the company announced its 'way forward plan' to adjust the sales decline and
maintain long-term value creations to its shareholders. The marketing plan involved focusing on

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the core brands, rethinking the multi-channel distribution strategy and applying ROI-driven
financial model (Deloitte, 2018).
Finally, the societal marketing era refers to determining the societal marketing concept, carrying
out the organization tasks through defining the customer needs, wants and interests in a way that
enhances the customer well-being (Rahnama & Beiki, 2013). Customer value is a very important
concept that organizations should consider, it reflects the customer evaluation of the utility of the
product. Customer value varies according to the market needs and it is becoming increasingly
important for its role in creating a competitive advantage to the organization (Wright, et al.,
2016; Kim & Ko, 2012). The Ralph Lauren brand is originally developed for creating value to
the consumer by considering quality, style, exclusivity and prestige. The customer appreciates
the American appearance and timeless classical look. They highly respect and recognize the
products among their wealth and sophistication. These psychographic characteristics are
incorporated by Ralph Lauren’s brand and marketing strategy (Martin Roll, 2018).
Second: Ralph Lauren marketing strategies and programs required to achieve the
company objectives
2.1 Planning a marketing strategy
Marketing concerns with the practices that should be carried out; customer identification, their
preferences, conducting an analysis of the factors that affect their purchasing decisions and
convenience them to buy products from the organization rather than the competitors. All of these
aspects require a well-planned strategy for marketing that makes the most effective resources
utilization within the given budget. The process of planning a marketing strategy begins with a
detailed, market investigation on the markets and segments. It should be a continuous process
that considers the social, economic, political, technological and cultural trends that shape the

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market. The marketing plan identifies the objectives and targets to be achieved and performance
measurements. Specifying the goals facilitates the discussion of options. The effective marketing
strategy should be aligned with the entire business strategy and should be supported by the top
management. The strategy should be reviewed continuously to reflect the changing requirements
of the environment and enable the marketers to rapidly respond to changing customer needs
(CIM, 2015).
Appropriate and effective execution of the marketing strategy is essential to guide the
development of the organization's capabilities Therefore, it is important that organizations define
the marketing strategy content decisions by selecting the available resources that the organization
should deploy and prioritize them to achieve various goals Marketing strategies could be formal
that follows the top-down approach or emergent strategies. Marketing managers are required to
prioritize the organization objectives and translate them into marketing goals (Morgan, 2012).
2.2 Marketing strategy content decisions
The marketing strategy content decision defines the areas in which the organization desires to
compete in to fulfill its marketing objectives. It has to define the targeted groups of customers
and the types of output that the organization will provide to fulfill their needs. Also, defining the
value position should be conducted to determine the specific requirements of the products and
services. It creates a sufficient demand at a certain price to support the organization in achieving
its strategic marketing goals. Timing represents a significant aspect of the majority of the
marketing strategies. Most organizations define specific time limitation related with their
strategic marketing goals that affect the marketing strategy content decisions (Morgan, 2012).
The marketing strategy implementation depends on its intended decision of goal selection,
customer targets and market selection, timing and the desired value (Morgan, 2012).

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It involves transforming the content of each marketing strategy into application that covers
related aspects of the marketing program. Therefore, it concentrates on actions through across
marketing program activities (Wymer, 2011).
2.3 Ralph Lauren marketing strategy
The marketing strategy of Ralph Lauren is based on his belief of being an anti-fashion person
who concentrates on the longevity, timelessness, style. The marketing strategy directly applies to
the blue ocean marketing strategy in fashion and lifestyle. It balances between sophistication,
classical fashion design and US heritage. It successfully mixes a new age style with classical
designs that attract consumers from various age groups. The balance between classic and
simplicity enables consumers to show their identity by wearing the Polo brand. The design of the
garments depends on a blank canvas that allows the consumers to express their fashion style in
the wearable product. This smart and effortless design strategy contribute to Ralph Lauren brand
identity and strengthen its equity across various markets and segments (Martin Roll, 2018).
Third: Ralph Lauren Corporation’s daily 7 Ps and STP
3.1 Ralph Lauren 7Ps
The 7Ps considers the seven categories of product, place, price, promotion, people, process and
physical evidence. They are discussed according to Rahnama & Beiki, (2013), Martin Roll
(2018), Godey, et al. (2016), Hammer (2011); Turner & Shah, (2016) and CIM (2015), as
follows:
 Product: According to Armstrong and Kotler, the product is the output that organizations can
offer to the market for selling, consumption or use and it is expected to satisfy the customer
needs. The marketing strategy should consider product development and its related activities,
like packaging, branding and warranty. The customers' of Ralph Lauren trust their products for

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their reputation as an authentic and first-class luxury brand. The matter that created the brand
into an identity.
 Place: It involves, type of marketing channels, transportation, location and distribution.
Marketers call this process the channel that involves delivering the products from the producer
to the final user. Ralph Lauren mainly depends on the printed advertisements and events, like a
fashion show. Moreover, it is the official garment for all on-court officials at tennis
tournaments, including Wimbledon and Wimbledon and US Olympic and Paralympic Teams.
 Price: It should include competition, markups, cost, geography and discounts. The marketing
strategy should consider the degree of price flexibility, lifecycle pricing, discounts and who
pays transportation expenses. Ralph Lauren offers its luxurious products at sky-high prices. Its
prices are competitive, they create an acceptable value proposition for consumers.
 Promotion: It tells the target market and other parties involved in the channel of distribution
about the right product. Ralph Lauren continues to spread his products in high fashion
magazines and media campaigns. It pays special attention to the way the customers pay
attention to its brand and how they portray it in the luxury segment.
 People: Refers to the staff members who get in touch with the customers. Many customers
cannot separate the product or service they purchase from the staff members who provide
them. They have a great impact on customer satisfaction. During the age of social media, every
single employee can reach a mass audience, where happy customers act as excellent advocates
for the business. Ralph Lauren brand is highly involved in social media and mobile application
marketing strategies. It utilizes the social media channels due to their expansion and customer
high dependency on them

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 Process: People consider purchasing a product or service an entire experience that begins
when they find the target company and continues during purchasing and beyond. Since 2017,
Ralph Lauren has started to implement a cost-effective and flexible digital platform business
operations to enhance the customer experience across the global ecosystem.
 Physical evidence: The selling place provides physical evidence that attracts the customer to.
For example, providing financial services that should take place in a formal location. Ralph
Lauren depends on the elegance of the stores and the expensive materials that suites his luxury
and classical brand design.
3.2 Ralph Lauren STP
Every company wants to increase its sales and expand across the market to become a well-
known brand that requires an effective marketing strategy. According to David Tarantino (2003),
as cited in Khan (2013), organizations should consider segmentation, targeting and positioning to
develop a marketing strategy.
 Marketing segmentation: organizations should classify the markets into segments of
consumer groups who share similar characteristics. There are two types of market
segmentation; A priori market segmentation, where the organization uses the already known
techniques of segmentation without conducting any market research. The second type is the
post hoc segmentation, which is implemented based on the research of customer evidence that
acts as background information for segmentation. Segmentation could be geographic,
demographic geodemographic or psychographic segmentation that considers the customers'
lifestyle (Lynn, 2011).
 Targeting: According to Peter Cheverton (2004), as cited in Khan (2013), targeting should be
conducted according to the attractiveness of segments and organization capacity. These two

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factors give the organization its real picture to select or ignore a particular segment. The large
segment size is more beneficial for the company for gaining the advantage of the economies
of scale,
 Positioning: It refers to selecting the target market where the organization wants to operate
and compete. Brand positioning and value proposition consider the type of information that
the organization will provide to the customer about the product (Jun, 2011).
Ralph Lauren’s focuses mainly on the lifestyle marketing through transforming practical
apparent into a luxury product that allows the consumers to connect the fashion brand with a
high level status. Therefore, its products have an immense impact on the American customer
style. It segments the world market into three segments, North America, Europe, and Asia. It
targets people from different ages and genders who look for a luxurious lifestyle. It seeks to
create an acceptable value proposition for its consumers (Templeton, 2013).
Forth: Relationships of the marketing functions to other functional areas in organizations
in the Ralph Lauren Corporation
Relationship marketing is highly related to the service sector growth rate and it is characterized
by long-term relationships with customers. Relationship marketing plays a significant role in
preparing the floor for a networked perspective of value creation. Also, the new technology
brooders the view of the relationship phenomenon (Gummerus, et al., 2017).
Marketing capabilities could be considered across different levels accross the organization on the
individual and departmental levels. The individuals use their knowledge and past experience to
solve problems related to marketing that face the organization. Marketing is related to sales to
consider the competencies associated with selling capabilities and the system structure that
ensures effective sales force management (Morgan, 2012; Sheth, 2017).

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Marketing and quality are highly associated to ensure the application of the total quality
management (TQM) to ensure value delivery by involving customers in the value-creation
process. In addition, marketing should be integrated with the R&D activities to cooperate in
improving product development. R&D depends on the inputs from the marketing department to
evaluate the developed products. Moreover, marketing is related to manufacturing in terms of
providing the market potential and impact of using technological tools in manufacturing products
(Brettel, et al., 2011).
Ralph Lauren highly concentrates on the product quality, therefore the marketing department is
highly connected to the quality management that represents the core of its business. In addition,
it is associated with the public relations department to maintain the brand image and join the
fashion shows and ensure international social media coverage to its events. In addition, the
customer demand and specific requirements are arranged with the manufacturing of the company
garments before selling the finished goods (Ralph Lauren Corporation, 2018).
Recommendations
Ralph Lauren is recommended to continue growing its business and expand in more luxurious
markets. Also, it has to do more efforts in the R&D in relation to the marketing activities. More
enhanced marketing efforts are required in order to increase the sales volume and offset the
company financial losses.
Conclusions
The Ralph Lauren Group currently markets for 17 brands of fashion and 4 brands of lifestyle
across 30 countries and through 493 directly managed stores. Ralph Lauren capture exactly what
consumers’ need from a luxury brand and apply these needs into their delivered products. The
Ralph Lauren brand is originally developed for creating value to consumers by considering

13
quality, style, exclusivity and prestige. The customer appreciates the American appearance and
timeless classical look.
Ralph Lauren marketing strategy directly applies to the blue ocean strategy in the fashion and
lifestyle. It successfully mixes a new age style with classical designs that attract consumers from
various age groups.
The customers' of Ralph Lauren trust their products for their reputation as an authentic and first-
class luxury brand. The matter that created the brand into an identity. It depends on the printed
advertisements and events, like a fashion show. Moreover, it offers its luxurious products at sky-
high prices. Its prices are competitive, they create an acceptable value proposition for consumers.
Ralph Lauren brand is highly involved in social media and mobile application. It has started to
implement a cost-effective and flexible digital platform business operations to enhance the
customer experience across the global ecosystem.

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