Positioning Analysis D&G

Positioning Analysis – D & G

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Dolce and Gabbana are a name that represents the eccentric and authentic luxurious products. It signifies the style that shows elegance and manifests itself as contemporary classicism that is based on innovation and creativity. This brand has maintained its identity by remembering the pillars and the roots on which the organization is stands. It has been evolving and growing continuously with the passage of time. This company has sought the help of attractive female and male models in order to position itself. For example Andreea Diaconu, who is a Russian female model who is 22 years old, is a renowned name for Dolce and Gabbana advertisement (Blasberg, 2014). The other female models promoting the brand include Liu We, Jac Jagaciak, Constance Jablonski, and Isabeli Fontana (Blasberg, 2014). The many attractive models used by this clothing company make it attractive to consumers. This is how Dolce and Gabbana have made an identity for itself (Lamb, 2011). Moreover, the company has positioned its brand in a way that the products display glamour, with simplicity and trend. Many music artists display this brand as described, especially rappers who have very flashy lifestyles. The simple designs provide luxury and brand power. This clothing company has adopted this style because of elevated brand recognition. The target market is of course people aged between 15 and 30 years who are keen on trends (Lamb, 2011).

 When it comes to tactical decisions and evidence of how the market perceives this brand, we consider opinions of fashion icons like Roberto Cavalli and Giorgio Armani. In the Daily Telegraph U.K. (September 14th 2012), both men praise the brand. Cavalli called it the foundation of fashion whilst Armani said that without the foundation laid by the brand, the fashion sector would be nothing, according to Shea (2013), another opinion that matters in the perception of D and G in the market place is Jeff Poretto’s. The fashion journalist has only positive things to say about the. Shea further says that Dolce and Gabanna is the trendsetter of the fashion industry (2013). These three very significant opinions give the perception of the brand in the market. Therefore, it can be deduced that the market has positive perception about the brand. Before a customer buys a certain brand, he or she must always get the opinions of fashion icons and gurus(Blasber, 2014. Since the above people have positive feedbacks and opinions about the brand, the market also has a positive perception about it (D’Aveni, 2010).

Competitor analysis is of utmost importance because it helps to determine the weaknesses and strengths of the organization. The major competitors of D & G are Gucci, Versace, Chanel, Prada and Dior. Their brand concept is based on the unmatchable quality, strong fashion contemporary that is free from the ostentation (D’Aveni, 2010). Prada’s target, however, is usually more international than American. The brand concept of this company is based on the Italian tradition and culture that does not compromise on the quality and prefers sophisticated designs and styles (D’Aveni, 2013). Gucci, on the other hand, targets celebrities and children. The brand concept of Gucci is exclusivity, craftsmanship of Italy, Italian quality and authority of fashion. For the positioning of brand, the company prefers modernity, trendsetting, sophistication, and craftsmanship. Chanel’s target market is upper class women of middle age that are fashionable. Their brand concept relies on elegance, modernity, luxury and simplicity.

In as much as competitors are concerned, I think that Dolce and Gabanna have an extensive advantage. Gucci is a brand that bears the most competition to this brand. This is because of its celebrity advertising style which makes it very expensive. Though D and G also use celebrity advertising, its products are very affordable. This gives it a niche above the rest of its competition.

Versace has recently adopted brand expansion strategy in order to give it a big market share (Shea, 2013). The company went public to boost its popularity. This is something that D and G did a long time ago. Therefore, Versace cannot be considered to be a worthy competition for the company. The going public by the company can benefit in several ways. One, it will boost the sales that will translate to more revenue than others. Capital that gives it the opportunity to expand and grow will be available. Furthermore, there is an advantage that the public become aware of the products and the company can acquire novel group of the potential customers. Finally, the brand becomes capable of maintaining competitive advantage with its diverse and new product lines (Shea, 2013).

Whilst Chanel has adopted reduction strategy i.e., improvement of exclusivity and individuality of the brand, the company has decreased the number of licensees. They are focusing on expertise building and their dominance in the particular products (Blaberg, 2014). The company has focused on this strategy due to reason that the wealth distribution among the rich remains stable, and the brands utilizing this strategy focuses on separating them exclusively from the lower end (Blasber, 2014). However, this strategy can be successful to the extent that it can reverse the worsening by improving the market condition.

Still on the analysis of other competitors, Prada and Dior’s strategy has speed and innovation in order to imitate the fast market players of the economy (Christersen and Montgomery, 81). They are introducing and re-positioning the products rapidly in order to have a strong position. They also want to have a defined segment of the customers to get a firm grip on the market. They have realized the fact that customers are now moving towards a recognized uniqueness and intangible image or brand. Consumers also want products that they are attached to emotionally.

In conclusion, all the brands such as Gucci, Dior, Dolce and Gabbana and the other brands discussed have all flourished the on franchising in order to outdo each other. Furthermore, all the companies are making their efforts for expansion. However, D and G stand above the rest. It is expanding its boutiques that are company owned in order to make its position strong and to compete in a better way with the competitors (D’Aveni, 2013).The company has arranged specialized stores that target distinct segments such as accessories, and children. This is what makes this brand better than the others. Being rather a veteran in the market has helped it to have customer loyalty. The company’s products appeal both to the older and younger generation. This is because “though fashion changes, it remains the same”. Dolce and Gabanna have been able to maintain its original customers as well as add the new generation customers. Its products are trendy and very appealing. The market, therefore, sees it as a bridge between the older and the younger generation.References

Blasberg, Derek. (2014). Andreea Diaconu’s Model Behavior. The Wall Street Journal. Retrieved from:http://online.wsj.com/news/articles/SB10001424052702303933104579304763970245636

Lamb, Rachel. (2011). Dolce & Gabbana to strengthen brand affinity with line absorption: experts. Luxury Daily. Retrieved from: http://www.luxurydaily.com/dolce-gabbana-to-strengthen-affinity-with-line-absorption-experts/

Christensen, H. Kurt., & Montgomery, Cynthia A. (1981). Corporate Economic Performance: Diversification Strategy Verses Market Structure, Strategic Management Journal, 2(4), 327-343

Shea, Erin. (2013). Versace’s possible sale could spur more growth. Luxury Daily. Retrieved from:http://www.luxurydaily.com/versace%E2%80%99s-possible-sale-could-spur-more-growth/

D’Avene, Richard. (2010). FASHION CONSCIOUS: LESSONS IN COMMODITIZATION FROM THE FASHION INDUSTRY. Ivey Business Journal, Retrieved from:HYPERLINK “http://iveybusinessjournal.com/topics/strategy/fashion-conscious-lessons-in-commoditization-from-the-fashion-industry” l “.UuavfdKDrIU”http://iveybusinessjournal.com/topics/strategy/fashion-conscious-lessons-in-commoditization-from-the-fashion-industry#.UuavfdKDrIU

D’Aveni, Richard Anthony. (2013). Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power, Harvard Business Press, USA