Marketing strategies by Celine, Slides of Brand Marketing

Download Marketing strategies by Celine and more Slides Brand Marketing in PDF only on Docsity!

Marketing Strategy

For

by: Humzah Butt

Table of Contents

• Historical Background ……………………………………....
• Mission/Vision Statement …………………………………
• Brand Evaluation/Audit
• Positioning Strategy
• Target Market
• Marketing Strategy
• Brand Positioning
• Cost for Marketing Initiatives
• Conclusion
• References

Mission/Vision Statement …………………………………

While Celine doesn’t display a Mission or Vision statement on their website, their parent company LVMH does provide a mission statement according to different houses under their umbrella with Celine being one of them. The statement is: “Our business model is anchored in a long-term vision that builds on the heritage of our houses and stimulates creativity and excellence. This model drives the success of our group and ensures its promising future” (LVMH).

Brand Evaluation/Audit

When evaluating a brand such as Celine, Internal and external strengths and weaknesses should be considered at first if the company needs to do any strategy. Moreover, the opportunities Celine will face and what threats it will meet in recently and future will be discussed in the following section. Brand Strengths Celine is considered a powerful brand when it comes to their brand equity. One of Celine’s main strengths is their awareness of the brand and always staying loyal to their customer base when designing and creating their products. Another strength is that the brand is heavily associated with its Parisian background. Due to that background, they became part of the main fashion conglomerate, LVMH which strengthens their place in the fashion world among its LVMH peers (Louis Vuitton, Gucci). Celine’s high status when it comes to their leather goods and accessories would also be considered as a strong suit when it comes to them as a brand. Brand Weakness Celine is known to have a strong brand equity and also a brand density. It is known that they use their advantages to their strategy; to be identified by the public while still remaining exclusive. While they see it as an advantage and a strength, I believe it to be a strong weakness of theirs. Due to them being known to the mass audience, the fact that they try to emulate an exclusive image such as their competitors (Hermès, Chanel) can be hurting them from an increase of sales. Another significant weakness of them for the brand is their failure to communicate their mission or their vision statement due to them not having either present on their site. And when it comes to moving their strategy to more of an e-commerce/digital strategy, they’re fairly new to the

Competitive Analysis Within Celine’s target market, they expect to compete with the following companies: Louis Vuitton Products we compete with : Leather Goods, Accessories and Apparel (Their handbags have a more prestige level as well as a decent following behind the brand) Louis Vuitton is known for its leather goods which makes them a strong competitor for Celine who are also a heavy favorite when it comes to leather goods. From a sales perspective, Louis Vuitton has an estimated sale of $33.6 Billion dollars (Forbes.com), which automatically sets them as a competitor for any fashion house including Celine. Gucci Products we compete with : Leather goods, accessories and apparel (Their handbags, apparel and handbags have a far more prestige level as of late as well as a decent following behind the brand) Chanel Products we compete with: Leather goods, accessories and apparel Some researches show the price is not the most important factor customers would consider, they are more focus on the value of the products. Like Celine, many rich people are honest fans of its

products through the price is very high. This is a big difference between normal products and luxury goods. They buy Celine for distinguishing others. According to the psychology of customers, Celine promoted a strategy from 2003, which is called limited edition. Celine produces some goods with specific design, and most important point is the company will control the numbers of the goods. It made a big success until now, every time when Celine creates a new limited-good, the product will be sold much quickly than other products within that line. Beside great quality goods, Celine pays a lot of attentions on its services for customers, Dior also pointed out that all luxury brands not only focus on selling goods but also making a great relationship with their customers after sale. All of these strategies made Dior compare with its biggest competitors like Gucci, Burberry, and Hermes. Christian Dior got more benefits in sales within its talent manager groups.

Target Market

Marketing Strategy

Product: Celine is a luxurious fashion brand and was launched to satisfy styling sense of high-class people. It has maintained its position as the creator of Haute-Couture, which is a world- recognized division. Celine designs and markets leather goods, ready-to-wear, footwear, fashion accessories and fragrances. Celine’s Belt and Classic Bag are some of its popular leather goods made for women and Celine’s Teddy Jacket caters to men’s taste when it comes to apparel. The company produces high quality leather goods as well as new silhouettes to their Ready-To-wear thanks to the creative direction of designer Hedi Slimane. Price: Celine markets its products for high-class and high-income group with help of its quality assurance and exclusive creations. It targets customers who are elegant with a social distinctiveness. As its products are of premium quality it has adopted a premium pricing policy for its products. Celine has developed a relationship based on trust with its customers and it is these high-end customers that have helped the company to survive and flourish on premium prices. Celine is all about exclusivity and its clients recognize this fact and hence do not hesitate to purchase Celine products at premium prices because at the end of a day it is a status symbol to be seen with a product produced by them.

Promotion: Celine is all about trust and relationship. Brand rewards the loyalty of its regular customers by sending latest news about its products through email or mail. It also offers invitations for pre-sale to selected few who are exclusive and regular buyers. Celine has a website where related information is easily available and interested customers can purchase products through its online outlets. Travis Scott, Blake Lively and Luka Sabbat are some of the celebrities who have been seen in public wearing this brand. As promotion is a big aspect of marketing Celine has published its ads at proficient magazines like Vogue and Harper’s Bazaar that caters to premium clients.

Cost for Marketing Initiatives

Editorial Ad Campaign: $100, Celebrity Endorsements : $0 (Gifting to loyal high-profile celeb clients only if they post themselves on their social media wearing the product while using the hashtag) Fashion Show: $300, Advertising (Digital): $400, In-Store Party/Event: $65, Overall Cost: $865,

Conclusion

The value of wearable technology in the fashion industry is expected to reach about USD$ billion by the year 2022. Given this projection, Celine should aim to position itself as a pioneer in the luxury wearable technology to have themselves above their LVMH peers. In order to achieve this goal, Celine needs to introduce their innovative product through the appropriate channels carefully so the launch can be successful. For Celine, diving into the future is a positive investment in themselves based on where the targeted market is heading.