MKT Assignment 02 Essay Example | Topics and Well Written Essays - 750 words

MKT Assignment 02 - Essay Example Gucci. Prada. Louis Vuitton. Coach. Herms. Chlo. Not anymore. Price - a meaningless word in accessories and leather product industry - is one now echoing deep. Interestingly, feminine sensibility has changed at industry's heels or, conversely, has prompted an unlikely change. Handbags - a long-standing feminine companion, a stamped LV projected for all eyes to see - have given way to shoes. In response to current crisis, major brands are working out marketing strategies stressing less on "new" and more on loyalty to existent classic offerings. Wall Street Journal Magazine qualifies current economic crisis as "Fact": Evidence suggests that after a long shopping hiatus last winter and spring, consumers have been tiptoeing back into stores to buy shoes, handbags and sunglasses, selectively [emphasis added]. (Bannon) "Selectively" is, in fact, telling. Indulgent consumers, losing huge financial assets, are psychologically speaking no longer interested in luxury per se but to keep up an image damaged hard in elite circles. In response, industry giants are adjusting to perceived shifts. Thus, a Prada bootie priced at $800+ during shopping splurge heydays now costs $495. Yet, bags are a standalone symbol for femininity - hence industry's, led by Louis Vuitton's, marketing strategy to enhance brand image of classic models. Saks Fifth Avenue and Chlo are following suit. Interestingly, an industry traditionally geared up to high-end, well-off, older consumers is currently turning to 18-to-25-year-olds stamped -by luxury industry - as "bunkie". Coach's Poppy - featuring sequins, jewels, bright colors, logos and metallics - is a clear example. Notwithstanding Coach's turn to, well, "bunkies" Poppy's features still retain an industry's hold [Insert Your Last Name] 2 on luxury values. Thus, in a mix of new market segmentation and pricing strategies, accessories industry eyes unlikely (untapped) markets during business-as-usual days. Yet, some big brands (e.g. Bottega Veneta) still refuse, at all costs, to compromise on price and stress more on quality and value. Consistently, Italian manufacturers show reluctance to offshore - an indication of still entrenched Italian all-in-the-family business culture. Major retail stores in major markets such as U.S. have, however, responded more briskly catering to more diverse global consumer segments. Indeed, one great opportunity current economic crisis offers to accessories industry leaders is including broader global market segments formerly inadequately served. Historically, market segments for accessories industry have taken as central to global marketing strategy North America, Western Europe, Australia, and Russia. As part of global marketing strategy, global brands such as mentioned above have enjoyed constant featuring in major fashion weeks in Paris, London, Milan and New York. Comparatively, little attention has been directed to emerging fashion weeks in Middle East (e.g. Dubai Fashion Week) and Indian Sub-Continent. In current global economic situation rethinking global marketing strategies becomes a mandate not only for expansion and growth but even for survival as global tastes