Armani Hitches Wagon to Lady Gaga

-- Ben, Hongping & Prajakta

Introduction to Armani Founder: Giorgio Armani Founded: 1975 Approximately 500 stores worldwide 1980’s: American Gigolo brings

Armani fashions to the big screen. 1990’s: A/X store opens in New York. 2000’s: Armani opens $73 million

Milan megastore during 25th anniversary year.

Competitive Environment – Then Bricks & mortar locations Low cost mass production of

standardized styles Consumers less sensitive toward

style and fashion, and preferred basic apparel

Longer “Seasons” “Predictive”

Competitive Environment – Now Hyper competitive Accessible Speed to market Mass customization - internet More segmentation, more

competitors, and more variables to consider

Shorter & more frequent “seasons”

Its Brands

Brand Competitors

Buying Motives for the International Average

Value for money 60% Look for a deal 58% Loyal to good brands 38% Buy on sale 33% Prestige names 27% Research first 35% Newest products 19% Luxury brands 12%

Customer Segments

Strength and Weakness as a Brand

Strengths are his eye for design and the strength of the Armani name. It carries a lot of credibility.

Weaknesses are that he may be diluting the brand too much. Part of the allure was/is the exclusivity. But if you get into every market where everyone can touch your brand, it may loose some status.

Risk of Failure: the Domino Effect Risk of brand failure by the upper of the

brand portfolio No risk of brand failure by the bottom of the

brand portfolio

Lady Gaga’s Influence

Facebook: ~52.2 million Twitter: ~26.1 million

Demographic Characteristics

Demographic Characteristics

What segments is Lady Gaga catering to?

Young to middle-aged professionals The gay and lesbian community People who feel like they don’t belong to

the status quo – which at one point or another is just about everyone

Strengths of Her Brand Name

Avant- garde Unique and Personality( which is also Armani’s

brand philosophy) Differentiation A very strong, solid, loyal fan base that drives a

lot of positive sentiment.

Weaknesses of Her Brand Name

Bizarre image Polarizing

People doubt why she is famous and not really talented Transferring her negative impression on the product and

keep away some loyal product customers

What segments is Lady Gaga catering to?

young to middle-aged professionals the gay and lesbian community

Will the Armani brand will benefit by joining hands with Lady Gaga?

Armani Brand Image: Staunchly Conservative, Elegant.

Sentiments behind Lady Gaga’s Popularity. Other sponsors for Lady Gaga:

Burberry,Chanel. Can her fans even afford your product? Maintaining long-distance relationships

Alternative Association

Taylor Swift.

Mark Zuckerburg.

Generic Issue

“Rejuvinate" a brand with celebrity relationship.

Repositioning.

Parallel Case. Tiger Woods association with Nike.

Sources http://www.referenceforbusiness.com/history2/36/Giorgio-Armani-S-

p-A.html http://www.giorgioarmani.com/pressRelease/pressDetail?

prid=2&year=0000&language=EN http://www.venturerepublic.com/resources/giorgio_armani_-

_the_ultimate_fashion_brand.asp http://www.thejakartaglobe.com/columnists/five-steps-to-build-a-

luxury-brand/444248 http://www.slideshare.net/Christophe_btz/2011-esc-pau-armani-

final-ppt http://socialmediaweek.org/blog/tag/demographics/ http://www.armani.com/