Monday, February 10, 2020
Marketing and Management Critical Assessment Research Paper
Marketing and Management Critical Assessment - Research Paper Example The paper has taken into consideration the history of the company along with its past situation and present situation. In analyzing the present situation, PESTEL, porters five force, its target market, posting, and branding strategies have been analyzed and it has reached into the conclusion that the brand has been performing well but still faces certain challenges such as global financial crises, environmental issues which need to be catered in order to sustain...n its sustainability and global pressure. Contents Executive Summary 2 4 Introduction 5 History 6 Present Analysis 8 Target market 8 Differentiation & Positioning 8 Micro Environment 9 SWOT Analysis 10 Macro Environment 11 PESTEL Analysis 11 Overall corporate/business/marketing strategy 12 The 4PÃ¢â¬â¢s 13 Life Cycle 14 Y Axis 15 X Axis 15 Brand strategies 15 Online presence 16 Relevance of Corporate and Social Responsibility 17 Future of the brand 18 Reference 19 Introduction In the recent years, the luxury industry has been facing increased pressure due to the rise in Euro currency against dollar which has resulted in the reduction of the global consumer expenditure (Riley, Lomax & Blunden, 2004, p. 40). Luxury can be defined as an indulgence on goods or services that are not essential for daily existence and is directly proportional to economic affluence. The marketers are trying to invent new terms in order to quantify the concept of luxury which in return has created confusion with regards to the term luxury. Luxury is not only trade or restricted to indulgence on cars or fashionable accessories but a very different way of understanding the needs of the customer and manages the business in an effective manner. The term luxury is often dealt with confusion as everyone tends to understand it but there are hardly people who can agree on the meaning of luxury. The concept of luxury is a relative group and not an absolute category. It can be said that with time span the concept and meaning of luxury keep on changing, a luxury today can become an essential item in future. A luxury what is it today will have an absolutely different meaning and value in the future (Kapferer & Bastien, 2009, p.39). The luxury industry is one of the global multi-billion sectors which comprises of brands which are of high relevance and are also among the most influential brands globally. Despite the fact that the luxury industry is among the largest sectors but the SBU of the luxury industry has been experiencing a slow growth rate. The reason behind this was that the brands were managed mainly through the traditional methods of business where decisions were taken through intuition and also on trial basis. Thus in the environment of global business, the luxury sector has been undergoing certain changes in the process of management. Changes such as valuation of brand assets, brand equity along with the need of e-business have been taken place in the luxury sector. Other factors which have also emerge d over the years include the expansion of luxury sector for the consumer market so to target a broader market; increasing competition from other brands; reinterpretation of the concept of luxury by the consumers and with the emerging new markets in the luxury sector such as India, China and Russia have opened up new outlook and opportunities for the fashion luxury sector.