Linda Farrow Sunglasses
Introduction
The luxury industry comprises of different segments and according to the 2014 statics, it is evident that the business experienced a healthy growth of about 7% and was expected to grow further in the future (Linda Farrow, 2013, p.22). However, it is evident that international travel and tourism are some of the factors that have enhanced luxury experience across the globe. Apparently, luxury spending is done by both individuals and tourists in a given area, and the culture is continuously gaining popularity in the recent past. Marcom analysis in business studies refers to the analysis of the various marketing activities to assess the progress and offer valid suggestions on how companies can be improved. Different facets are addressed in the above event and include market positioning, which is an issue that helps marketers in understanding the performance of merchandise hence determine the success of any business. Another aspect that is analyzed is the business plan as it determines the various strategies through which the business objectives can be accomplished.
Company
Linda Farrow was established in 1970 and is renowned for its luxury eyewear that became popular in most areas of London and the international market as well. The company started as a fashion designer and later specialized in the sale of sunglasses, making it a famous fashion that was quickly accepted in the international market. The company reputation was developed from the massive investment in innovation and development of new shapes and styles, which are used to date. Linda Farrow has been in existence for over four decades and utilizes its innovative strategies as some of its key competence to outcompete its rivals (Linda Farrow, 2013 p.22).
The company is based on fundamental values such as originality, which are achieved through the use of experienced designers that can bring innovation now and then. The company has remained to be innovative to meet its expectation of producing high-quality products that offer consumers a luxurious experience. Furthermore, the above objective is achieved through its efforts to collaborate with prominent designers in the fashion industry, an aspect that gives it credit. Moreover, the company has an extensive analysis of sunglasses with over 2000 varieties ever since its formation in 70's. It is, therefore, imperative appreciating that the company has established itself as a key player in the fashion industry and has a variety of brands that has made to gain a competitive advantage' (Farrow to Launch, 2011, p.7).
Brand Identity
Brand identity is a vital component in the classification of the luxury products and utilizes a given model in explaining the different human traits, to help appreciate the different features that are considered by the consumers. The prism used in the above role of identification utilizes six key characteristics as follows; the physique is the first element in the classification and refers to the different features that are owned by a given product, which includes its symbols, attributes, among other values. Personality in the above concept refers to personality assumption of the brand when compared to people as it signals particular character and attitude towards a product (Gains, 2013).
Culture as the fourth concept in the prism helps identify the origin of the given product and the different values for which the products stands for in various societies. Furthermore, a luxury brand must develop an inbuilt relationship between the product and the consumer as the users tend to relate given merchandise with certain beliefs which make them loyal. In the identification process, the brand signifies a given reflection of what others think about the brand, an aspect that maintains the brand image. Self-image is the final element of the identity as it indicates what consumers think of them when they buy the particular product. For example, a consumer putting on the Linda Farrow sunglasses, which are unique and rare to find, feels to be more beautiful when compared to someone without as it adds some final touches to someone's beauty.
Linda brand identity has evolved and with consistent innovation, it has retained its market position and remains to be appreciated in the current market setting. Both the internal and external aspects of its identity have been modified over time including its logo and trademark but its distinct identity in the market has been retained. Some of the sources for its strong brand image include the high degree of innovation that is employed in its manufacture, uniqueness and its strong reputation in the market among other significant aspects. Furthermore, the brand has a vast amount of consumers for its products, making the product to gain continuously penetration into new markets (Cavender & Kincade, 2015, p. 1083).
Product/Service Focus
Linda Farrow Ansoff’s Matrix
BCG Model
It can be defined as a simple chart that is often used by business organizations to do a thorough analysis of their varied business units with a purpose of making informed decisions. The plan enables the managers to effectively utilize their resources in the most effective way that will generate more revenue for the business. The above goals can be realized through effective brand marketing, management of the different organizational merchandise and finally the portfolio analysis. For the example of Linda Farrow Sunglasses, the BCG model offers a wide suggestion to the business management to help enhance on its performance. As mentioned earlier, the business is a multinational organization and mainly deals with the sale of sunglasses which falls in the list of the famous luxury products that are available across the globe. The company is among the leading in the industry and offers over 2000 brands of sunglasses to the market, an aspect that should be considered in the market analysis. However, to remain relevant in the market, the business considers laying off the underperforming products so as to remain among the global leaders in the business.
Question marks
In the above case, it represents a group of products which have a low market share in the general market, an aspect that makes such products in the above category to use a lot of cash so as to capitalize on the available market opportunities. However, the revenue generated from such products is limited to a great extent due to various reasons.
Stars
It represents most of the company’s products at Linda Farrow as most of the company’s products have a high share in the market, despite the high growth that is experienced. For the above case, such brands require huge investments so as to maintain their market position and a guarantee of effective differentiation in the current market. In the future, this action can be explained by the company’s huge investment in innovative designs and a move to merge with other firms in the industry that will help make the business products to be recognized in the market.
Dogs
For the above scenario, dogs refer the products of Linda Farrow that have a low market share, an aspect that can be justified by the slow growth that is experienced. For this kind of products, it is worth noting that they are only limited to a specific locality, and for such products, the revenue generated is adequate to sustain their existence in the market.
Cash cows
This is the most important class of products that are offered by the organization and are recognized because of the capacity to generate huge amounts of cash. The products have a good reputation in the market and are accepted over a broad market share and in most cases very little investment is required for such merchandise. Linda Farrow can release such products into the market for various reasons such as the production of unique products that remain fashionable over the decades and the continuous investment in innovation.
PLC (product life cycle model)
PLC is a significant corporate strategy that is often applied by different business units to understand the different growth stages of their products and how they perform in the market. The strategy applies to most businesses as it helps to plan for the introduction of new products as well as the elimination of the declining ones, as well on developing appropriate steps on how to refine the existing merchandise. Linda is one of the multinational organizations that have effectively applied the above concept in different ways.
While introducing new products, the business focuses on the idea that the new product is often considered unique in the market and its distribution is limited, for the above case, the price of such products has to be high to capitalize in generating more revenue. However, for products which are trying to grow their market share, the focus is often different as their main idea is to intensify distribution while increasing products benefits to attract more consumers. For the case of the mature products, Linda Farrow corporate is able to maneuver well in the market by making its products unique and innovative so as to distinguish them from the competitors. However, for declining products, the approach is different as distribution is limited to a few market shares with a goal to remind of the products existence. Therefore, it is worth noting that entrepreneurs have to effectively understand the different stage of their products in the market and their share as well so as to remain relevant.
Introduction Stage
The production stage of Linda Farrow Sunglasses is very expensive, as the sales are low, and the company is spending a lot in activities such as marketing, customer testing, and research and development.
Growth Stage
In the growth stage, the Linda Farrow is benefiting from increased profit margins and economies of scale, due to increased in sales and awareness.
Maturity Stage
In maturity stage, the aim of Lind Farrow is to maintain its increased sale of Sunglasses. The company needs to utilize its competitive advantage and invest accordingly in its marketing strategies.
Decline stage
Market saturation and customer shifting to other competitors are making the sale for Sunglasses to decline. The company needs to shift to cheaper markets and less-expensive production methods to make some profit.
(Product life cycle stages, 2016)
Market Analysis
Macro luxury market analysis
It is worth noting that the different facets face the macro environment for the luxury brands like for the case of the sunglasses. The various factors influence the business performance hence has a significant impact on the amount of profit generated from the same (Green, 2015, p.33). The issue has made most organizations to consider aligning their product costs in line with the above environmental issues so as to experience continued profit. Some of the issues in the macro environmental setting include the following;
Political
Technological
Natural
Demographics
Economics and
Cultural issues
It is important appreciating that there is a consistent interplay amid the different environmental problems and politics in a given setting. The market trends are influenced by political issues, for example, an increase in tax due to the implementation of certain laws will lead to increased operational costs for the business, which will jeopardize the company. Luxury brands are most affected by any slight increase in their prices, as this vice results in a decrease in sale hence affecting the company significantly (Reportlinker & PR Newswire, 2016).
The current global setting is characterized by technological innovation, an aspect that is highly appreciated in the market as most luxury products will tend to embrace the innovation, thus out-competing the old fashion products from the market. An example in place is the massive investments that are done by Linda Farrow sunglasses to remain relevant in the market. It is, therefore, imperative to appreciate the fact that luxury brands are influenced by the rate of technological investments hence the need for innovation. However, the natural environment is considered to have an influence on the sale of luxury brands as it acts as a primary source for the various resources that are involved in its production. Therefore, availability of resources influences the marketing and supply level of the luxury brands hence determine the profit margin that is experienced by any given business.
Demographics as an issue that affects the sale of the products in different ways and it is the concept that will be used in the above study to refer to the amount of people in a given area. It is important to recognize that population has a direct impact on the success of luxury brands in the market, as it influences the volume of sales that is experienced. People's changes are subject to change with time, and it is, therefore, the role of any company to predict the expected variation so as to respond effectively to it. To address the above need for the market, the companies producing the luxury brands have always relied on the market research to understand the different needs of the souk so as to meet adequately the needs of the consumers (Bernstein Research, 2010, p. 33).
Moreover, the economy plays a critical role in the marketing of luxury products, in that the brands experience high sales when there is a stable economy that is cultivated by relevant market policies that make the merchandise available to all. Culture as an aspect may determine the behavior of an organization or people in a given area hence has a significant influence on their purchasing behavior. It is important therefore to appreciate that the concept has an influence on luxury marketing decisions in the different parts of the world. There is a class of fresh consumers in the market, and this includes individuals in young cohort who have a great level of education and cash. Such individuals are always attracted to fashion, therefore, are willing to devote more on the extravagance products as long as they remain fashionable in society (Global Luxury, 2015).
Below are pictures of examples of some sunglasses that Linda Farrow offers.
Micro market
The microenvironment will essentially relate to the immediate surroundings to any single business that has a direct impact on the enterprise performance. There are different issues in such a setting that may influence the sale of luxury products and this include; the supply of the products, consumers characteristics, concerned stakeholders and regulatory bodies among other significant issues. Therefore, it is worth recognizing that the above issues are in the immediate environment where the business operates.
Linda Farrow sunglasses are unique in the market, an aspect that makes them gain a competitive advantage, and this can be attributed to the mere fact that they have few suppliers in the market. Furthermore, the frames of the sunglasses are made from rare materials such as snake skins and rare minerals hence making them fetch high prices on the market. However, to understand the different micro-environmental issues, the markers are in a position to conduct a market analysis so as to understand the different tastes and preferences of the consumers in the market (Greene, 2007, p.8). Furthermore, the study helps the users to understand the various barriers that prevent a given brand from gaining acceptance in the market and how they can correct the situation.
Sources of information that are used to understand the micro-environmental issues that face a given brand include both the primary and secondary sources. The analyst has a role to analyze the different factors that present varying opportunities or challenges to a particular market. Furthermore, the marketer needs to appreciate the different models that are used by the competitors in the market and devise new business strategies to enhance the company performance. Luxury brands are unique and often contradict with the classical marketing strategy, an aspect that requires for their own unique marketing mix' (London's best, 2015).
Product policy
The brand requires extensive research for the market to introduce a new product that will be readily accepted in the market. Different factors are concerned in the above case, and these include a taste of the consumers, packaging that will suit most people and finally the various advertising strategies. Therefore, it is paramount to appreciate the fact that luxury products cannot be altered to meet the short-term needs of the market as often as they need to be unique in nature and should remain relevant in the market for long. The first aspect that is often considered is the superiority of products, and merchandises released into the market ought to meet customer expectation.
Price
The luxury brands utilize a different pricing strategy referred to as the superlative in that it makes the brand be accessed by few individuals in the society because of its quality and rarity. The perception has a significant influence on the brand image of a specified product and significant benefits that the products that are often linked to it. Therefore, it is important to appreciate that the luxury brands should not be waived by the price changes as they are likely to increase sales in the short-run, but reduce the sale of the products in the long-run (Emmerich, 2005 p. 32).
As of 2016, the prices for different sunglasses offered by Linda Farrow are as follows.
Reports on Linda Farrow sales (2015)
Distribution
Luxury brands often utilize the concept of distribution to make their products rare, an aspect that limits the brand availability. The above concept is achieved through the use of an extremely selective distribution. This action, therefore, makes it difficult for consumers to purchase the luxury products as the demand is often higher than supply, which is an aspect that controls the pricing policy used. Consumers are therefore made to make an order for such unique products, an element that creates a desire and thrill for anticipating getting such products.
Unique Selling Proposition (USP)
The USP concept is a marketing strategy that is often used by business enterprises in the sale of their respective goods or services so as to maintain a competitive edge. With the current global setting, it is worth noting that USP is applicable in the different business context as it helps them to define itself as either cheap or better, an aspect that will attract more consumers. Moreover, the method used in defining the type of USP utilized has a significant influence on kind of benefits realized. The value proposition is an important aspect that should be embraced by any organization that wishes to sell its products in the current competitive market. USP as a market strategy helps marketers to differentiate themselves from competitors by stating what they offer differently from the others. The concept creates a competitive differentiation for the business and an example in place is Linda Farrow's determination to embrace innovation and uniqueness in all its products (Luxury Investments, 2015).
Fact-based USP is the use of competitive differentiation as the key aspect that differentiates one business from another as it shows the uniqueness the offered products or services from the rest. The aspect makes a company appear special not only in the eyes of clients but general bazaar hence gaining consumer loyalty. Using the concept, one can meet the needs of the target market more effectively especially for those working in a competitive market (Kingl, 2010).
On the other hand, the value based USP indicates what the consumers gain from using products from a given business that they will miss if they use products from a different vendor. As mentioned earlier, Linda Farrow presents a range of luxury products to its consumers, which are unique and of high quality in nature. People buying unique sunglasses from the company have an opportunity to get quality products at reasonable charges that will make them be identified in the bazaar. Another value that is gained by purchasing sunglasses from Linda Farrow includes the fact that the organization educates the public on the appropriate type protection so as to gain more loyalty to the business products (The Marketing, 2015).
Conclusion
The sale of luxury products has gained popularity in the recent past in the most parts of the world, an aspect that requires the business organization to come up with practical strategies on how they can maneuver well in the market. Linda Farrow is a global organization that is renowned for its unique and innovative sunglasses, an aspect that has helped the business enhance its reputation in the international market.
SWOT analysis
Some the key strengths of the organization include the fact that the enterprise offers quality and unique products to the market, which fetches high prices. Furthermore, the organization has a variety of sunglasses that are appealing to a broad range of people of different ages. The business can also utilize pricing plan as an important tactic to outcompete its rivals in the marketplace.
However, some of the weaknesses that are experienced by the firm in the industry include the fact that there are many competitors in the market. The business has a low barrier to entry, an aspect that has directed to increased competitors and the fact that there are many counterfeit products on the market. Some of the key opportunities for the organization include the emergence of a new market for sunglasses across the globe, as the uses of the products are becoming more popular with globalization. Furthermore, the business is gaining more acceptances in the international market, an aspect that encourages more investment in the enterprise. However, the commerce is not deprived of threats as specific dangers that are experienced, including scarcity of rare products that are used in the production of frames. The production cost of the sunglasses is escalating due to the high demand for innovation, an aspect that is limited by the lack of adequate personnel with experience in the invention of new designs.
Source: SWOT analysis explained
Recommendation
The organization should consider integrating with similar companies so as to reinforce its capacity to produce quality products at affordable prices.
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